Nationwide to scrap cashback for 1million credit card customers
NATIONWIDE Building Society is set to scrap its cashback perk for 1million credit card customers from December.
Nationwide's scheme allows customers to earn 0.25% of what they spend on Select credit cards taken out before January 11, 2018.
The same perk also applies to Cash Reward credit cards, although these are no longer available for new customers.
The cash earnings are added up over the course of the year and then paid to your account each December.
But from December 1, cardholders will no longer earn any cashback from them.
If you have one of these, you'll carry on earning until November 30, with your final cashback paid to you as part of your December statement.
Top cashback credit cards available
WE’VE worked out how much you could potentially save based on a family with a weekly spend of £200 a week (£10,400 a year).
- American Express Platinum Cashback Credit Card, APR 27.3% – Apply here
The American Express (Amex) Platinum Cashback Card gives you the chance to earn 5%, up to a maximum of £125, on your first £2,500 of spending within the first three months.
After this introductory period is over, you'll get 1% cashback on spending up to £10,000 and then 1.25% on spending above that.
Remember that Amex isn't as widely accepted by retailers as Visa and Mastercard based credit cards either, so you might not be able to use it in some shops.
There's also a £25 annual fee with this Amex card.
Potential cashback after a year (not including the annual fee): £205
- American Express Platinum Everyday Cashback Credit Card, APR 22.2% – Apply here
This Amex card gives you 5% cashback on purchases, up to a maximum of £100, on your first £2,000 of spending in the first three months.
Once the three months are up, you'll get 0.5% cashback on purchases up to £5,000 and then 1% cashback on spending over this amount.
Keep in mind you'll need to spend at least £3,000 on your card each year to qualify for any cashback.
The card comes with an APR of 22.2% and there's no annual fee – but you will be charged £12 for late payments.
Potential cashback after a year: £142
- Santander All in One Credit Card Mastercard APR 21.7% (0% for first 26 months) – Apply here
Santander offers 0.5% cashback on purchases over £1 a month.
It also comes with 0% interest on balance transfers and purchases for the first 26 months – after this it charges 21.7% APR.
However, you should note that this card comes with a monthly fee of £3, so check how much you plan on spending and if the cashback is still worthwhile.
Santander currently doesn't charge late fees for payments, but it'll start charging again from 1 November, 2020. This charge is £12.
Potential cashback after a year (not including monthly fees): £52
The move will affect roughly 1million customers, although Nationwide said 78% of those earn less than £10 a year through the scheme.
If you tend to earn more, we've rounded up some of the top cashback credit cards above, or you can check out our guide.
Nationwide told The Sun that cutting cashback will ensure its credit card offering remains "sustainable and effective".
It comes after Nationwide last year closed its Simply Rewards scheme, which offered customers cashback when they used their cards at selected retailers.
In July, Santander announced plans to cut current account cashback rates and hike fees by up to £12 a year.
A few months earlier, Santander said it'd cut interest rates on 123 accounts for the second time in a year.
Meanwhile, Asda recently warned its credit card customers to use their cashback within two weeks – or they'd lose it.
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