Make your financial services pay you for a change. Banks and insurers are desperate for your money so use this to your advantage and grab the best deals and cashback offers around. Yes, make money from your financial products. You could even score some free money from the government!
- Get free money from your bank
- Get a credit card that that pays you to shop
- Make money from your insurance company
- Make money from your telecoms suppliers
- Free money from the government
You may be able to claim money from dormant accounts for free. It’s estimated that over £850 million is still lying unclaimed in various in banks and building societies so there’s every chance you have some money lying forgotten somewhere, or perhaps an old savings account your Nan set up that you have no idea even exists. Find out more here.
How do they work?
Cashback credit cards work by rewarding spending with cash. These aren’t loyalty cards so you’ll still need to pay them off every month or you’ll pay interest on what you owe. Find out more in our full article on reward cards.
Should I get one?
Not if… you’re unable to repay cards in full. If you aren’t confident that you can repay the card in full each month, apply for a credit card with the lowest interest rate instead. Or take a look at a card that offers 0% on purchases for as long as possible. The Tesco Credit Card is the best option, giving 0% on card purchases for a whopping 16 months.
But… if you can cover the costs of any spending on a cashback credit card they’re a great way to earn a little extra cash on your normal spending.
Grab the best buy so that you make as much money as possible:
The Capital One Aspire World MasterCard pays new cardholders 5% cashback for three months, up to a maximum of £100. After that the rates are tiered depending on how much you spend but you can earn up to 1.25% cashback.
As the high rate is only on offer for three months, apply for the card around the time you are likely to spend a lot of money on it such as the summer holidays or Christmas (although bear in mind that it takes several weeks to process the application).
Any other tips?
- Set up a direct debit so that you know your debt is paid off in full each month.
- Put all of your purchases on the card – this doesn’t mean you should spend more but rather that you should use the card for all your normal purchases to maximise the cashback benefits.
- Don’t use these cards to withdraw cash – this will normally incur a hefty fee
N.B. Get more freebies! You should also check other reward cards for freebies. If you like to shop online, use cashback shopping websites that reward you with cash when you buy your shopping through them.
Start with the sites that give you instant cash just by signing up. Cashback Shopper gives you £5 when you register, and £5 for every friend you refer.
Home insurance – three months free
Get 3,000 bonus Nectar points with Sainsbury’s home insurance if you take out a combined buildings and contents policy before 4 February 2013. You’ll also get an additional 20% off when you buy any cover online.
N.B. Always shop around for the best deal and try not to be too distracted by offers like this, but if it compares well with other insurance offers it’s a good way to get an extra freebie. You can use our very own comparison service. You may even want to check the comparison sites to be extra careful – try the following:
Get £35 cashback with any car insurance policy
Price comparison service MoneyExpert.com is currently offering insurance shoppers cashback of up to £25 per policy. MoneyExpert.com promises to credit your bank account with the cashback within 60 days of the application. Even better, the cashback is offered across all quotes, not just specific deals, so you can pick the best policy for you.
Start shopping around for the best car insurance policy at MoneyExpert.com.
£100 of Marks & Spencer vouchers with Sky
Sky customers will receive a £25 M&S voucher when they purchase any Sky TV package, and a £75 M&S voucher for recommending a friend.
Free gift card worth £250 with Tesco mobile
There are lots of great mobile phone contract deals around so it’s well worth considering switching when your current one expires.
You can get up to £250 of Tesco vouchers when you sign up to one of their mobile contracts. Best of all, the phones in this deal are FREE!
Child Trust Funds
A CTF is tax-free money for every child born between 1 September 2002 and 2 January 2011.
Parents will be sent a voucher (£50 or £250 depending on circumstances) which is used to open the CTF.
Families on child tax credits who earn less than £16,190 for this tax year may receive an extra £250 paid directly into the account.
Parents, family and friends can add up to £3,600 to the account each year and there’s absolutely no tax to pay on any interest earned, so CTFs essentially ISAs for kids. Once the child is 18, the money can be accessed.
How do they work?
Parents can choose to invest the voucher in one of three types of accounts:
- Cash CTF
- Stakeholder CTF
- Shares/Equities CTF
Cash CTFs are the safest option. However, returns are limited and although stakeholder and shares-based CTFs have suffered in recent times due to the stock market crash these are more likely to offer high returns in the long run. Remember that these accounts last for 18 years, which is a long time to ride out the ups and downs of the stock market. Parents are also free to switch their child’s account, both from one provider to another but also importantly to a different type of account. So, you can have a cash CTF now and switch to a stakeholder CTF later or vice versa.
Should I invest the voucher?
Yes! Definitely – there’s absolutely no reason not to invest the voucher. If you don’t, the Government will invest the voucher on your behalf into a stakeholder account. This means you don’t get to choose where it goes as they’re selected on a strict rotation basis.
How much money can I make for my child?
If you were to save a further £25 a month on top of the free money, the CTF would be worth an impressive £5,650 at age 18. Even better, if you manage to top it up to the maximum level of £300 a month, a CTF account could be worth more than £65,000 when their child reaches 18.
Although CTF accounts have been severely affected by Bank of England base rate cuts they still offer better than average returns when compared to normal savings accounts, particularly when you take into account the tax savings.
Current best buys
- Skipton BS 2.65% AER, minimum addition £10
- Yorkshire BS 3.00% AER, no minimum addition (includes introductory bonus)
- Earl Shilton 2.85% AER, minimum addition £10
Other providers worth checking out
- Engage Mutual Assurance Child Trust Fund
- Family Investments Child Trust Fund