Cashback websites like Top cashback and Quidco pay you when you spend through them. You can make £100s a year using them correctly. This is a Money Saving Expert guide to the top cashback sites and how to earn extra by using a cashback credit card, along with some serious warnings to make sure you protect yourself. You can also earn an extra 5% on top using a cashback credit card.
How do cashback sites work?
If you want to buy something online or sign up to a finance product, rather than going direct, click to the company via a cashback site and you get paid for it (but don’t choose cashback over the best deal). The sums range from pennies for groceries to more than £100 for some mobile or broadband contracts.
You’ll have to sign up to the cashback site, which should be free. If it’s not, avoid it. Then simply log in and search for the online retailer you want to buy from, such as Argos or BT. If it’s listed, click the cashback site’s link to visit that company.
Your visit is then tracked. If you buy something, an amount is put into your cashback site account once the transaction’s processed. You can withdraw this once it arrives, which can take a few weeks, or even months. For some cashback sites, you need to reach a set threshold before you can withdraw.
The following table gives you an idea of the possible savings – though remember rates fluctuate every day and differ between sites:
Typical cashback site payments
Asos 1.6%-8.5% of purchase’s cost BT broadband £59.50-£165 per package Clarks 3.2%-5.1% of purchase’s cost Co-op home insurance £40-£47.50 per policy Currys 1%-25% of purchase’s cost Hastings Direct car insurance £26.40-£55 per policy New Look 0.8%-6% of purchase’s cost O2 mobile £7-£81 per contract Last updated November 2021. Based on rates from Topcashback and Quidco, which may differ based on product/spend and customer type (new or existing).
Why do they pay out?
Cashback sites take advantage of the way commercial payments from one website to another work. They use affiliate links, which allow the retailer to track where the traffic is coming from and then pay the cashback sites for the lead.
This is a common system, used by sites that send people through from comparison results, unique content (MSE does this – see the foot of the page for more details) or using links on advertising promotions. Cashback sites simply drive traffic by giving their users some of the money they’re paid.
The amount of money depends on what’s spent on what as well as the commercial deal, so can vary widely. The cashback site may earn its money per click, transaction, application, or accepted applicant.
The technology’s simple. Ready-made paying links are available from ‘links warehouses’. Big cashback sites also have direct relationships with companies, which means they can offer a wider range of providers, earn more and negotiate their own exclusive deals.
The 5 MAJOR cashback safety rule
While cashback sites can generate some users £100s a year, it’s very important you understand there can be substantial pitfalls in using these sites – and you need to understand them BEFORE you begin.
The top-paying cashback sites
Don’t think all cashback sites pay the same. When we checked in November 2021, we found big differences, for example, up to £40 vs up to £55 on Hasting Direct car insurance, 1.6% vs 4.25% on Etsy. The best cashback sites are those that pay out up to 100%, so ostensibly give all the money they earn to you. Here, we focus on those.
Topcashback*
Often pays the best rate
If you want the site that pays the most, Topcashback* usually seems to be the one.
When we spot-checked rates for 20 big brands in November 2021, Topcashback offered the highest rate of cashback for 15, Quidco for three. Yet given rates vary so much – and depend on what exactly you’re buying – it’s always best to check Quidco too, especially when making larger purchases.
Topcashback is free to use and pays out up to 160% of the cashback it receives from the merchant. That might sound strange, but it’s able to do this as it passes on some of the bonuses it gets for generating lots of sales.
How do I join & get cashback?
- Choose its free membership. Topcashback has no annual administration fees. New users are signed up to a 30-day free trial of its ‘Plus’ membership – remember to downgrade before the trial is up (which you can do at any time), otherwise you’ll find you’re automatically charged for a year’s membership (deducted from your earnings).
- You can choose to pay a £5 membership fee. The Plus membership* gives a 10% bonus on non-exclusive cashback rates, for example, a £100 cashback deal would net you £110 as a Plus member.
- Boost returns by up to 15%. You can take your earnings as cash, but if you prefer it’s possible to get a payout bonus by exchanging your cashback for e-gift cards from John Lewis & Partners, Just Eat, M&S and more.
- Earn cashback in a few stores. Topcashback offers cashback on purchases made in the stores of several retailers, as well as those made online. See below for more info on getting cashback in stores.
Quidco*
Can beat Topcashback, so worth checking too
Quidco* is Top cashback’s big rival, with the two sites often competing on exclusive deals. While our spot-check in November 2021 found Topcashback was more likely to offer higher cashback rates, it’s always worth checking both sites before spending, especially if you’re making a big purchase.
How do I join & get cashback?
- Pick the Basic membership. If you don’t pick this, you’ll have to pay a fee.
- There’s a Premium membership available. For £1 of your earned cashback per active month, Premium members get an up to 10% top-up on cashback rates, up to 20% higher payout bonuses, a double-the-difference highest cashback guarantee and no adverts on the site.
- Boost returns by up to 15%. You can take your earnings as cash or get a top-up bonus by withdrawing your cashback in the form of e-gift cards from H&M, Tesco, Uber Eats and many more.
- You can boost cashback in a few stores. Quidco users can also get cashback in the stores of several retailers, as well as online – full info on in-store cashback below.
An alternative… if you have (or know) a kid
While the sites above offer standard cashback, if you’re willing to put your cashback towards a child’s savings – even if those savings sit in your current account – then another option may win.
KidStart
Rare cashback on Apple and John Lewis
KidStart lets you earn cashback with over 2,300 retailers in total, including Apple, Argos and John Lewis & Partners (which not all cashback sites do), but you have to put what you earn towards a child’s savings.
You don’t need to be a parent. The child can be a niece or nephew, a grandchild or a friend’s. They don’t even need to have been born yet, though you do need their name and expected date of birth to withdraw the cash. You don’t need to actually withdraw money to a separate child’s account either – you can simply use your own current account.
You MUST be legitimately saving for a child though. KidStart says it has ways of checking and, if it suspects you’re not, it could wipe the savings in your account.
How much cashback can I get?
Previously, KidStart’s major selling point was that it paid cashback on Amazon purchases, but it no longer does. Yet at the time of writing, it does pay 2.5% on most Apple purchases, which, when we checked, the other top cashback sites didn’t cover.
It also currently pays up to 5% on John Lewis & Partners, which the other top cashback sites don’t cover (Topcashback does, but only pays cashback in Avios points) and 4% on H&M, comfortably beating the rates offered by both Quidco and Topcashback.
If you’re a regular shopper it can quickly rack up, as former MSE Steve N found: “Over the past six years, we’ve earned a huge £275 cashback for our kids, mainly at John Lewis and Amazon. We started the account before our first child was even born.”
That said, KidStart isn’t always competitive. For example, it pays up to 2% on Asos, compared with up to 8.55% at Topcashback and up to 7.2% at Quidco, so always compare, especially when making a big purchase.
How do I join & get cashback?
- Sign up to KidStart (it’s free). You don’t need to add a child’s details to start earning cashback – you can add them later.
- Log in and click KidStart’s link to visit your shop of choice. Your visit and purchase is then tracked and the amount of cashback you’ve earned is put into your KidStart account once the transaction’s processed.
- You can withdraw your cash once you’ve reached the £10 threshold or the minimum deposit of the account you’re transferring to – whichever’s higher. Before you take the money out you must add a child, enter their name and date of birth, then link that profile to a Child Trust Fund, junior ISA or bank account (this doesn’t have to be the child’s – it can be your own current account).
Cashback successes
Plenty of Money Savers have had huge success using cashback sites. Here are some stories for inspiration:
So far I have got back around £300 from buying things that I would normally have bought and not received anything back for. Things like my garden shed, washing machine, car insurance, home insurance and every day items.
I’ve made £2,500 from Top cashback alone over the last three years – booked holidays, offered to book hotels for family members for occasions like weddings, and bought all insurance and Christmas and birthday presents.
Have used Top cashback for years and average £300 per year, so very good IMO.
I’ve been a member with them for almost four years, and I’ve never had any problems with them tracking or declining any valid transaction … So far TopCashback has paid me £1,617.88.
Let us know about any success you have using cashback sites, and any other feedback you have, on the Top cashback sites forum thread.
How to boost your cashback by £100s more
There are a few ways to boost your cashback:
6.Survey sites: Make money from giving your opinion
Source: Top Cashback Sites
