I’m sure you’ve heard of the term cashback before. But how does it actually work and what are the benefits to you as a shopper? This is your complete guide to cashback and how it can save you £100’s every year on your everyday shopping in-store and online.
What is Cashback and How does it Work?
Every time you buy something in-store or online you have the opportunity to earn cashback. Cashback apps and websites will reward you for shopping at your favourite retailers by offering you a percentage of your purchase price back. This could be anything from 0.5% of your spend amount all the way up to 100%.
So, for example, a cashback website might be offering 10% cashback at ASDA. If you complete a £100 purchase at ASDA via the cashback website the cashback website would give you £10.
Why would they give you free money for your purchase?
Cashback is part of an advertising/marketing funnel. ASDA will have a marketing budget that they can allocate to draw attention to the store and new promotions/products they have. They will offer a cashback website a cut of that marketing budget if they drive sales to ASDA. Then the cashback website give you a percentage of that budget back. For example, ASDA may offer the cashback website 15% commission for every sale they drive to ASDA. The cashback website give you 10% and then they keep the remaining 5% for themselves.
That’s the basics of it broken down into simple terms. It means that you and I as consumers can benefit from part of the marketing budget to put some money back in our pockets for the shopping we were doing anyway.
It’s completely FREE to use cashback apps and websites and is something I strongly feel everyone should be using. The average consumer can save over £300 a year by earning cashback on their everyday shopping. That’s free money you could be getting back on things like your grocery shopping, fashion, beauty, homeware and even on purchases like insurance, mobile phones and opening new bank accounts.
The 3 Main Types of Cashback
When it comes to cashback there are 3 main types that you are going to come across and those are, Tracked Link, Gift Card and Automated. Here is how the different types of cashback work:
1. Tracked Link
Tracked link is the form of cashback that most people are familiar with. This involves clicking a link via the cashback app/website which will redirect you to the brands website that you wish to shop at. You just complete your shopping as normal online and the link you clicked will enable the cashback app/website to track your purchase and reward you the relevant cashback for it. This form of cashback is only available for online shopping.
With tracked link cashback I’ve been able to get cashback when buying a new mobile phone, on my car and home insurance, on holiday bookings as well as on my regular online shopping.
2. Gift Card
Gift card cashback is one of the newest forms of cashback available. And let me tell you, it is a game changer! This form of cashback allows you to earn money back on your purchases in-store and online and has opened up so many more places that you can get cashback at. Simply buy a gift card from the cashback app/website for the brand that you are about to shop at to earn instant cashback. Then shop as normal on the brand’s website and select your payment method as gift card to complete your purchase.
I use this form of cashback in 2 different ways:
- For places I go regularly like Aldi, ASDA & Sainsbury’s I buy a larger gift card amount like £100 to receive the instant cashback. Then every time I go shopping I keep scanning that same gift card to pay for my food shop until the balance is down to zero. Then I just repeat the process and keep doing that to keep earning cashback.
- For places I don’t shop at regularly like when buying new clothes I will work out what my order total will come to and then buy a gift card for that exact amount to complete my purchase. By doing it this way I’m not left with a balance on a gift card that I’m unlikely to use again for a while.
The best part about gift card cashback is that you receive the cashback for your gift card purchase instantly. Just make sure to double check where your gift card can be spent. Some gift cards can only be spent in-store or online and others can be spent on both.
3. Automated
Automated cashback is exactly what it says on the tin. The cashback is automatically given to you when you shop at a store offering cashback. This is done via linking your bank card/bank account to the cashback app/website. Your purchases are then tracked and cashback can be rewarded automatically without you having to remember to click a link or buy a gift card. This is perfect for those that are new to cashback or that struggle to get into the habit of remembering to look for cashback rewards before shopping.
When will I receive my cashback?
Tracked link and automated cashback can take a minimum of 30 days to become payable. This is because the cashback app/website need to wait for the returns period for the brand you shopped at to lapse before your cashback can be rewarded as you may return the item for a refund and would then not be entitled to receive the cashback.
Cashback received when purchasing a gift card is rewarded to you instantly.
Whilst waiting 30+ days for your cashback might seem a long time, once you get into the habit of using cashback apps/website there will always be a stream of funds that will be ready to be paid out to you.
The Best Cashback Apps & Websites to Use – Plus £68.50 worth of Bonuses
I’ve compiled a full-list of all my favourite cashback apps and websites that you can use to earn money back on your every day shopping. Plus if you’re a new user to any of the mentioned apps or websites you can claim the listed bonus to really get your cashback balance off to a flying start.
Quidco – Tracked Link (£20 New User Bonus)
Quidco is both an app and a website that allows you to earn cashback via the tracked link method. They regularly run limited time offers where you can earn a bonus on top of your regular cashback rate (These can always be found on the homepage).
Simply use the search bar to find the brand you are about to shop at, then click ‘Get cashback’ via the brands page to be redirected to the brands website.
Complete your shopping and Quidco will track your purchase. You can view your tracked cashback by clicking ‘Account’ > ‘Your activity’.
Withdrawing your Funds
Once cashback is confirmed you can withdraw your funds (from as little as £1) to your bank account, PayPal account or to a gift card to receive a top-up bonus.
Quidco Premium
Quidco is free to use but you can pay for Quidco Premium to receive extra perks. The cost for Quidco Premium is £1 per month and this is taken from your earned cashback each year. Quidco Premium gives you access to higher rates of cashback, up to 20% payout bonuses and a highest cashback guarantee.
£20 New User Bonus
Quidco users can get a £20 cashback bonus when they have earned their first £5 in cashback.
Rakuten – Tracked Link (£25 New User Bonus)
Rakuten is a cashback website that has recently tried to break the UK market after being very popular in America. This cashback website uses the tracked link method to reward you cashback.
Use the search bar to find the brand you are looking to shop with, you will then see the available cashback rates whilst the cashback website redirects you to the brands page.
Once you have completed your shopping you can find your tracked purchase by clicking your name in the top-right hand corner of the screen and selecting ‘Account’. Here you will find your recent cashback activity.
Cashback is automatically paid out to your linked bank account or PayPal account on the 15th of every month when you have a minimum confirmed balance of £5.01 or more.
£25 New User Bonus
New Rakuten users can claim a £25 new user bonus when you spend a minimum of £30 (excluding VAT & postage) at any Rakuten partner brand within 90 days of signing up to the website.
TopCashback – Tracked Link & Gift Card (£10 New User Bonus)
TopCashback has been around since the dawn of time and is one of the original cashback websites alongside Quidco. There are 2 main ways you can earn money with TopCashback and that is via clicking a tracked link or by buying a gift card.
Tracked Link Cashback
Use the search bar to find the brand you are shopping at or use the drop-down categories menu to see all the brands available.
From the brands page just click the ‘Get Cashback’ button to be redirected to the brands website to complete your shop
You can check to see if your cashback has tracked by clicking ‘Account’ > ‘Earnings’. Some brands take longer to track than others but you should receive an email notification to let you know when your cashback has tracked.
Gift Card Cashback
TopCashback also have their own in-built gift card cashback section called ‘TopGiftCards’.
When you buy a gift card via TopGiftCards the gift card will be delivered to you via the email address that you inputted during the checkout process. Your cashback will show as ‘Pending’ under the ‘Account’ > ‘Earnings’ section.
TopCashback regularly run bonuses where if you buy a £10 gift card via TopGiftCards you will earn a £2 bonus PLUS the listed rate of cashback for the brand you bought a gift card for. It’s a great bonus that pops up regularly so make sure to have notifications on for the app to receive a reminder when the next one is live.
Withdrawing your Funds
You can withdraw your earned confirmed cashback to your bank account, PayPal account or as an e-gift card to receive a top-up bonus.
TopCashback Premium
Like Quidco, TopCashback also has a premium feature called ‘Plus Members’ which costs £5 a year. The fee for this is deducted automatically from your earned cashback. For being a TopCashback Plus Member you will receive boosted cashback rates, boosted payout rates on gift cards and an increased tell-a-friend bonus.
£10 Bonus Cashback
New TopCashback users can claim a £10 new customer bonus when they sign up and earn their first £10 in cashback.
JamDoughnut – Gift Card (£3 New User Bonus)
JamDoughnut was the first gift card cashback app to launch. The app has so many features and the team at JamDoughnut are constantly coming up with new ideas to make getting cashback even more fun.
Jammy Dough Show
The Jammy Dough show runs live from the app every week day at 1pm for half an hour. Just click the ‘JDTV’ menu-icon in the app to access the live stream.
Everyone who watches the live show is entered into a prize draw to win cash and voucher prizes. Cash prizes range from £1-£7 added to your JamDoughnut wallet. And voucher prizes range from £10 – £100, you can claim any voucher of your choice from the JamDoughnut app if you are a winner.
Win It Back Show
The Win It Back show runs live from the app every week day at 4pm for half an hour. To enter into the gameshow simply buy a gift card from any of the ‘Win It Back’ brands that are featured that week. Every purchase gives you a free entry into the game show.
There are 10 rounds in each game show. Each round randomly selects 11 lucky shoppers
As the rounds go on you ‘win back’ a percentage of your gift card spend
Round 1 = 10%
Round 2 = 20%
…all the way up to Round 10 where you can win back 100% of what you spent!
Prizes are paid as points which you can cash out to a bank account or as a gift card via the app. PLUS you don’t have to watch the live stream to win. Winners are automatically notified via email and text when they get lucky!
JamDoughnut Shop
More recently JamDoughnut have launched the JamDoughnut shop, think TikTok shop BUT with cashback. You can shop items directly from the JamDoughnut app and receive higher than normal cashback rates for your purchases.
If there is something you are really after and want a big discount on it then it’s worth checking the JamDoughnut shop to see if the item is available there to bag a bargain.
Withdrawing your Funds
You can withdraw your earned cashback to your chosen bank account (there is a 30p processing fee for this). Or you can do what I do and cash out your earnings to a voucher. When you do this you will receive the listed cashback rate on your withdrawal as if you are buying a gift card. So you’re getting free money on top of your free money. It’s a win-win!
£3 New User Bonus
New JamDoughnut users can get a £3 bonus when they download the app here and enter promo code ‘E3ES’.
Your £3 bonus will be credited when you buy your first £10 gift card within the app.
Airtime – Automated & Gift Card (Up to £1.50 New User Bonus)
Airtime works a little differently to all of the other cashback apps available. Instead of withdrawing your earned cashback as cash or vouchers, Airtime will send your cashback to your mobile network provider to reduce the price of your phone bill. This app works for both pay monthly and pay as you go mobile users.
Current network providers supported by Airtime include:
- 3
- EE
- Giffgaff
- Lebara Mobile
- Lycamobile
- Now PAYG
- O2
- Vodafone
When you sign up simply enter your mobile number, mobile network and whether you are a pay monthly or pay as you go customer. When you withdraw your cashback earned via the automated or gift card method Airtime will automatically send the funds to your mobile network provider who will deduct this from your next phone bill.
Gift Card Cashback
Gift Card cashback is sneakily hidden in the app and most users often don’t even know it’s there. To access the gift card section of the app click ‘More’ > ‘Want to earn more rewards?’ > ‘Buy Gift Cards’ > ‘Earn Rewards Now’. You can then select from a list of brands that you want to purchase a gift card from. All gift cards are listed at 4% cashback.
Monthly Challenges
Airtime run monthly challenges at the beginning of each month. You can opt-in for that month’s challenge by the 14th of the month at the latest. To opt-in click ‘Wallet’ > ‘Challenges’ > ‘Opt-in’.
Each month’s challenge is different and is unique to the individual user. The challenge requires you to earn cashback a set number of times in that month to receive a bonus. Bonuses range from 50p to £3.
Airtime Ignite
Alongside the automated cashback feature for linking a bank card, Airtime have a bonus feature called Airtime Ignite. You can access this by clicking the ‘Ignite’ banner on the home screen. By linking a bank account to the Airtime app you will get access to extra brands for cashback, £5 withdrawals (usually £10 minimum required to withdraw) and quicker rewards at selected brands.
Withdrawing your Funds
If you haven’t linked a bank account and opted in for Airtime Ignite you will need a minimum balance of £10 to withdraw your funds. To withdraw your funds simply click ‘Rewards’ > ‘Redeem’ > ‘Airtime’ and click for the funds to be processed to your network provider.
Up to £1.50 New User Bonus
New Airtime users can get a 50p bonus when they download the app here and enter promo code ‘YBBNDX4K‘.
Plus get an extra £1 bonus when you link a bank card and earn cashback within 7 days of downloading the app.
Everup – Gift Card (10Million Virtual Coins Bonus – Worth up to £750!)
everup has very swiftly become one of my favourite cashback apps to use and that’s because it has a mini-game feature that allows you to win cashback with a virtual coins reward system. This is on-top of cashback that you can earn when you buy gift cards via the app!
Virtual Coins
Every time you buy a gift card on everup not only will you receive cashback at the listed rate BUT you will also receive virtual coins for your purchase.
For example, if you buy a £100 gift card for B&M you will receive £7.80 in cashback plus 530.6k virtual coins.
The virtual coins you earn can be used on mini-games within the app to win cash, voucher and product prizes.
I’ve won £100’s with this mini-game feature and recently I was the lucky winner of a £150 gift card of my choice (I chose ASOS)
Daily Raffle
Within the app everup also run a Daily Raffle with the top prize being 10Million virtual coins. Sometimes they run a boosted raffle where you can win product prizes like Nintendo Switches, TV’s and Xbox’s. This is free to enter. Just check the app daily to claim your free entries.
Withdrawing your Funds
Your cashback earnings as well as your cash prizes from the mini-games can be withdrawn as gift cards or to your bank account. There is a 30p processing fee if you withdraw the funds to your bank. Similarly to JamDoughnut, when you cash out to a gift card you will receive cashback on this. So you’ll be getting cashback on your cashback.
10Million Virtual Coins for New Users
New everup users can get 10Million virtual coins when they download the app here and enter promo code ‘REF-NEESHA-C’
Your 10Million virtual coins bonus will be credited to your account when you redeem your first £10 in cashback
Cheddar – Automated & Gift Card (£5 New User Bonus)
Cheddar is a cashback app that utilises both automated and gift card cashback. It also has the added feature of spending reports which allows you to manage your money and allows you to quickly see where your money is going each month. The savings dashboard is a new feature to the app and something the Cheddar team are constantly evolving.
Automated Cashback with Cheddar
To find which brands offer automated cashback click the ‘Rewards’ menu button and scroll down until you see the category titled ‘Bank-linked’. There you can find a full-list of brands available for automated cashback and the percentages they offer.
£5 New User Bonus
New Cheddar users can get a £5 bonus when they download the app here and enter promo code ‘FUNCLUB‘
Your £5 bonus will be credited to your account when you buy a gift card within 14 days of downloading the app
Picodi – Tracked Link (£4 New User Bonus)
Picodi is a cashback app that works in the same way as TopCashback and Quidco. It’s not one of the most popular cashback apps as the cashback rates are often very low BUT you can definitely take advantage of the new user bonus to save some money on your shopping.
When you sign up to Picodi you can get a £4 new user bonus when you spend at least £20. That’s a £20 shop for just £16. The minimum withdrawal amount from the app is £5. So as long as you earn at least £1 in cashback for your purchase you will be able to withdraw the £4 bonus and your cashback once it is showing as accepted.
£4 New User Bonus
Sign up to Picodi and claim your £4 new user bonus here:
How to Cashback Stack – Get Double or Triple Cashback on One Purchase
Now that so many cashback apps exist it’s possible to earn double or even triple cashback on one purchase. Here’s how to utilise different cashback methods to get even more cashback when shopping online:
Double Cashback
To get double cashback you would need to use both the tracked link and automated cashback methods for one brand.
So, for example, if you shopped at Boohoo via a tracked link on TopCashback and paid with the bank card you had linked to Cheddar you would earn the listed cashback rate from both cashback companies.
Triple Cashback
To get triple cashback on your purchase you need to combine the double cashback method with a bank account that pays cashback.
So, for example, if you shopped at Boohoo via a tracked link on TopCashback and paid with a bank card that offers cashback that you had linked to Cheddar, you would get cashback via your bank as well as from TopCashback and Cheddar.
Bank accounts that currently offer cashback are Monzo and Chase.
Monzo offers specific rates of cashback each month for partner brands within the cashback section of the Monzo app. You need to activate these offers each month to earn cashback when you shop at any of these partner brands with your Monzo card.
PLUS if you’re new to Monzo you can get £5 for free when you sign up for an account here and use your new bank card for the first time.
Chase currently offer 1% cashback on all eligible purchases. To qualify for Chase’s cashback offer you need to deposit a minimum of £1,500 into your Chase account per month. You can earn up to £15 a month in cashback with your Chase card.
Getting Cashback on Discounted Items
Not only can you double and triple stack cashback but you can also combine it with any promotional offers or discounts a store may be running. If you shop via the tracked link method of cashback you may receive a lower rate than normal for your purchase if an item is discounted. But you should still be entitled to some form of cashback on that purchase.
So if New Look are running a 25% off sale and you spend £100 that brings your shop total down to £75. And if you also get cashback at a rate of 10% you’ll receive £7.50 in cashback. That brings your £100 order down to just £67.50!
Cashback Methods that Can’t (Normally) be Stacked
If you are paying for an online order with a gift card that you’ve earned cashback for, you won’t normally earn additional cashback if you also go via a tracked link. It may show as tracked initially but it’s likely to be declined by the cashback website when they come to confirming the cashback due to the payment method being ‘gift card’. It’s worth chancing it though as sometimes the tracked link cashback does get confirmed when paying with a gift card, but it’s hit and miss.
Cashback and the Tax Man
The great news about cashback is that it’s classed as a saving rather than an income. That means all the money you make from cashback is tax-free and does not need to be declared to HMRC.
It’s still worth keeping a track of the money you are saving with cashback though. A lot of the Fun Money Club Members track their cashback as a side hustle so they can easily see how much money they are getting back each month/year. If you want to start tracking your cashback you can do this on our free side hustle spreadsheet.
Top Tips on how to Maximise your Cashback Rewards
When it comes to cashback, it doesn’t pay to be loyal. Ideally you want to sign up to every cashback app and website available to maximise your rewards. That’s because each cashback website will have a different cashback rate for the same brand.
Try and get into the habit of checking every app and website to see which one is offering the highest cashback rate for the purchase you are about to make. This will help you maximise the amount of money you will be making in cashback.
It takes a while to get into the habit of checking all these different cashback apps and websites. But the more you do it, the more it just becomes second nature. I now won’t buy anything unless I’m able to get some form of cashback or discount on it.
Everyday Purchases – Where to Earn the Most Cashback
There are so many different product categories that you can earn cashback on. Some of the most popular are:
- Groceries
- Fashion
- Beauty
- Home & Garden
- Electronics
- Travel & Leisure
- Toys & Games
- Subscriptions
- Eating Out & Takeaways
- Insurance & Financial
- Utilities
And absolutely everything else in between! These days there are more things you can get cashback on than can’t.
The amount you can earn really does vary massively and depends on the category of shopping you are doing. Generally your Groceries will be on the lower end of cashback earnings and on the higher end of the scale you will have things like Insurance, Financial and Utilities.
Every penny really does count when it comes to cashback, so the more consistent you are with it the more you’ll see the money adding up.
For example, if you spent £400 a month on Groceries at a rate of 2% cashback, that’s £96 a year you’d be getting back. It’s not a huge or life changing amount, but it’s money that rightly belongs in your pocket rather than a billion pound companies.
Real Life Stories: How The Fun Money Club Members have Saved £100’s in Cashback
Don’t just take my word for it about how amazing cashback is. Here are what some of The Fun Money Club group members had to say about cashback:
Andrea from South Shields
‘I’ve been getting cashback since January however I did do the odd Airtime and ASDA Rewards before that. I’ve only tracked my cashback since January and up to October I have earned £514.90! My favourite cashback website has to be TopCashback, I find there are lots of good deals and they are good at paying out. My biggest cashback amount has been signing up for a First Direct bank account where I got £45 cashback with TopCashback. I’ve also had £40 for signing up to Tails via Quidco. I paid less than a fiver for some dog food so made over £35 profit!’
Fez from London
‘I bought a The North Face raincoat (it’s a 3 in 1 so has removable layers) from Blacks it was on sale for £120 from around £200. The cashback was 10% so savings all round! I used TopCashback for this and I earned £12.60. Since joining TopCashback I have earned £91.88 and since joining Quidco I have earned £375.02. I have been with Quidco longer but I prefer TopCashback as it’s easier to use and most of the time has the better deals for the places I shop.’
Kirstie from Wolverhampton
‘The highest amount of cashback I’ve ever had was for Airbnb where I had £38.50 in cashback! Since January 2023 I’ve made a total of £314.72 from JamDoughnut and £21.98 on Everup. My husband also uses these apps for our everyday shopping so our household savings are even greater! JamDoughnut is my favourite cashback app as it’s so easy to use and there are chances to win prizes every weekday with the JammyDough live shows.’
Ally from Pembrokeshire
‘The highest amount I’ve had in cashback was £68 on TopCashback when signing up to BT a few years ago. The total amount of cashback I’ve made since joining TopCashback is £561 and I’ve made £116 on JamDoughnut. I also use a Chase bank account to receive cashback and have made £130 from that as well.’
The Future of Cashback
New cashback apps and websites are popping up all the time. It’s an ever growing industry with lots of competition between companies to grow their user base. You’ll find these companies competing for your purchases by battling it out to offer the best cashback rate.
As the industry grows expect to see more opportunities to win money and gift card prizes within these apps. And with the advancement in banking and technology it’s likely many cashback apps will move into the automated cashback field.
AI is also likely to become a prime feature within these apps. This technology will enable apps to offer you tailored cashback rates based on your shopping and spending habits.
There is definitely an exciting future for cashback ahead that will only benefit consumers in putting more money back in their pockets.
Thank you