France, Paris, Woman sitting on bridge over the river Seine with the Eiffel tower in the background taking a selfie
Every time you spend on your card you can choose points or cashback, as well as convert your points into vouchers or flights (Picture: Getty)

I am a big fan of reward and cashback cards where (almost) every time you spend on the card you’ll earn a little back. You can choose from money back to your account or points that can be converted to vouchers or used against flights. My preference is to go for an option you can use as you wish, rather than be locked into certain airlines or brands.

The best paying cards right now both offer one per cent back. Open a Chase Bank current account and you’ll get that amount back on debit card purchases for 12 months.

Or go for the American Express Nectar credit card to get two Nectar points for every £1 spent, which also works out as one per cent. Say you spend £850 a month on either (or a combination) of these cards, you’d be better off by £100 a year, just for spending with a different card to normal. Retailer specific cards might offer even higher rates, though they won’t be as beneficial on purchases made elsewhere.

And you can boost your earnings even more by taking advantage of welcome bonuses. These can be worth anything from £25 to £125, perhaps more if they’re boosted in special offers. However, you will usually need to meet a minimum spending requirement in a short space of time to earn this too.

Most of your everyday spending will be eligible to earn you something back, especially things like groceries, trains and petrol, while you can also use them on larger expenses like holidays. Of course, there are going to be exceptions. You can’t earn on paying your tax bills for example, while not every retailer will accept an American Express card.

Money growing
You could boost your earnings even more by taking advantage of welcome bonuses (Picture: Getty)

If you’re interested, there are some vital rules you need to follow, especially if it’s a credit card you’re using. I always urge people to only use them for spending you can afford and not get tempted to spend more just to earn extra cashback.

And it’s vital you are able to clear the full balance each month to avoid interest charges.

Deals of the day

It’s also worth checking your eligibility on a comparison site before applying to see which card gives you the best chance of acceptance. Watch too for fees on some of the cards.

Andy's best buys: Reward credit card welcome

Sunset sky on airplane window over Copenhagen, Denmark
Turn those points into a much-needed getaway (Picture: Getty)

When you’re deciding on a cashback credit card, one way to make even more money is to choose one with a welcome bonus. And there’s a new offer that is a real standout option, and some existing Amex cardholders might be eligible to get it alongside brand new customers.

Go direct via American Express and the British Airways American Express Premium Plus card intro offer has been boosted from 25,000 Avios points to 35,000 points. That in itself is pretty decent.

But if instead you click through from a British Airways Executive Club account (it’s free to join), the bonus is instead 70,000. A massive increase. Sadly the points aren’t free. You have to spend £3,000 in three months. If you can’t do this then it’s best avoided. There’s also a £250 annual fee, though if you cancel or downgrade the card once you’ve triggered the bonus you’ll get a pro rata refund. That means three months will cost you around £63.

You can of course use these points towards flights, but I think it’s better for most of us to convert them to Nectar points to use at Sainsbury’s, Argos and eBay.

Do this and along with the points you’ll earned on your spending (1.5 per £1) they’re worth £496. Minus the fee that’s a profit of around £430.

You won’t be eligible for this bonus if you have had either of the two BA Amex credit cards in the last two years.

But unlike other American Express welcome deals, holding any other Amex doesn’t rule you out.

British Airways American Express Premium Plus

Welcome bonus: 70,000 Avios (via BA Executive Club only)
Key criteria: Must spend £3,000 in three months. £250 fee (pro rata refund available). Ends February 21, 2023

British Airways American Express

Welcome bonus: 20,000 Avios (via BA Executive Club only)
Key criteria: Must spend £1,000 in three months. Ends February 21, 2023

For more details on these and other savings accounts head to Be Clever With Your Cash.

Follow Andy on Twitter, YouTube and Instagram via @andyclevercash

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