- Personal Finance
Make Extra Money using Cashback Sites - UK
What are cashback sites?
Before we go into detail, a few words of warning. Don’t rely on any cashback until it is in your bank account. Although cashback sites in this article are reputable and long established, nothing is ever guaranteed. Last year a company which owned 2 cashback sites went into liquidation, and people lost money that hadn’t yet been paid to the. So the best advice is to withdraw money as soon as you can.
How Does it Work?
Once you have clicked through and made your purchase, after a short period of time the purchase should show up as ‘tracked’ on the cashback site with a provisional cashback amount. This takes anywhere between a few minutes and a few days depending on the retailer. After that (usually a few days but can be several weeks) the transaction will show up as approved or verified. Once this happens, the money is in your cashback account. You will need to get up to a certain level of money in your account (often £20 or £25) before it will be paid out to you, typically by bank transfer. Payments are usually made once a month. For example, payment might be on the 25th of each month, based on all cashback approved by 15th of that month (assuming you are over the withdrawal limit).
In Store Cashback
In store cashback is quite limited at the moment as there are only a few retailers signed up. But as you only have to register once and don’t need to remember each time you shop, it has got to be a good thing.
There are many different cashback sites, and they all offer slightly different rates, one will offer better cashback for one merchant but worse for another, so it pays (literally) to shop around. I will look at each of the better ones in turn.
Quidco was founded in 2005. It has over a million members and has offers cashback with over 2,000 retailers. It also offers in-store cashback for a few retailers. It has both discount vouchers and cashback, and for many retailers you will be able to get money off, and get cashback. Because of its large user base it claims it can get the best deal from retailers. Quidco passes on all of the cashback to members, but charges a £5 admin fee per year. This is deducted from cashback earned however, so if you don’t earn any cashback you don’t pay the fee.
Quidco pays by BACS or Paypal, whichever you prefer, and there is no minimum payout threshold (except whatever threshold you set yourself).
You can refer a friend to Quidco, and get £2.50 for each friend referred.
Cashback Rewards does promise to give you 100% of the cashback it receives. It also ‘gives’ you £2.50 for joining, but if you withdraw money it will deduct £5 from the first payment you receive each year. The minimum payout is £25 however.
Some More Cashback Tips
What Can you get Cashback on?
A certain percentage on purchases like DVDs, books, clothes, electronics etc. These typically average 5-10%. Examples include Argos, Play, John Lewis, Debenhams, Marks & Spencer etc.
- Flat rate fee on a range of services - insurance, breakdown cover, mobile phone contracts, credit cards, switching electricity/gas etc. These can be anything up to £200
- ‘Nil Spend’ offers, often on free trials. These can be up to £15 or sometimes even more. Retailers include Love Film (dvd rental), Audible (audiobook site), Credit check sites and more.
- Get Paid more than you spend - these are especially common with betting sites - bookmakers, bingo, online poker etc.
- Shopping clicks/searches - Between 1p and 4p per click for searching and clicking on products on ‘shopbots’ and price comarison sites. Usually limited to 1 per merchant per day, but these add up, particularly when done on multiple cashback sites. Also insurance searches - get between 50p and £2 for a car insurance or home insurance quote. Often limited to several per year.
- Cash for surveys, writing etc. - Get given cashback for filling in surveys or writing reviews (On TopCashback, get £1.00 per hotel review from Holidays Uncovered).
The first two are effectively a discount on your shopping/the cost of services you sign up to. The last three you can make money on without spending much, if any.
Because there are many different cashback sites, finding out which offers the best deal can be tricky, which is where moneysavingexpert.com’s cashback maximiser tool comes in:
Just search for the retailer you are wanting to compare, and it will tell you which cashback site is currently offering the most cashback.
Finally, it may be worth considering cashback credit cards, which offer cashback on all spending, in addition to any money you make on cashback sites. Only suitable if you’ve got a good credit rating and always pay off in full by the due date, otherwise it will end up costing you more than you are making.
Thousands of people are making/saving hundreds of pounds every year. Cashback sites are one of the quickest and easiest ways of making a bit of extra money, so why not give it a try?