What's up you guys, sasha here today, i want to talk about cashback cards. Specifically, i actually really want to talk about only one real cashback card. The reason i only want to talk about the one is because it's the last one left in the uk pretty much. There's only really one cashback card that you can go and get today.

That pays you any reasonable amount of cashback. So i just wanted to talk about it, because that card may not be around for too long, given the way that every other cashback card has gone over the last few months. I can't provide any financial advice here because i don't know anything about your personal circumstances, but what i can tell you is a little bit of personal opinion and if we're going to be talking about my personal opinion, let's go a little bit back. I remember, i think it was about 14 or 15 years ago.

I was working in capital one and at that point we were working on a cash back card that was already a market leading proposition. It was paying. I think it was three percent cashback, don't settle for a big fat, nothing switch to capital one's new cashback card and that card at that time was moving from three percent to five percent in order to entice even more customers to go and take it out. So that was a very, very different time.

This was actually before the last financial crisis, let alone the financial crisis. That's going on right now, and the market has changed the way that these products work has changed. Interchange has changed. That means that credit card companies today can't make as much money on you just making transactions as they used to be able to.

That has now been capped by eu legislation and as a result of that, as a result of the market pressures that everyone's going through right now, because financial services companies are being hit very hard by people losing their jobs, people's incomes being lower and therefore there's a Massively increased amount of defaults happening, so what this has meant is that today, the number of cashback credit cards has just collapsed just a few months back. There was a really great selection of cashback credit cards out there and in fact, other kinds of rewards products as well right now, there's only really one, and by one i really mean two, although they're very, very similar cards by exactly the same provider, and that's american Express now this is very confusing for a lot of people, and i see a lot of people asking this question, and that is why are there two american express cashback cards that are almost identical: they're called the american express, platinum, everyday credit card and the american express Cashback credit card, and in fact they actually are very, very similar. Let me just walk you through exactly what they are and let me then tell you exactly what they do now. First, the platinum everyday card is the one without the fee, and this is the credit card that everybody recommends.

Everybody says: well, you don't have to pay the 25 pound annual fee. Therefore, this card is the better one to get out of the two. What it does is it pays you, five percent cash back up to a hundred pounds total for spend over the first three months, so it means in the first three months if you go and spend at least two thousand pounds on that credit card. So if you put all your bills, all your shopping everything, whatever insurance payments, anything else where you can go and spend on your american express credit card, you'll be able to get a hundred pounds cash back after that you get to earn 0.5 percent cashback on the First, five thousand pounds: that's on top of the original 2000 you've already spent to get the hundred and anything above that will earn one percent cashback.

So that's not too bad. That's actually pretty good, especially given the other products have all left the market. That is actually an incredible offer, but let me tell you a bit about the platinum cashback card. This is the one that if you look at the reviews online and if you look at what people tell you, you should get they'll tell you you shouldn't get that one.

They tell you that the fee doesn't make it worthwhile. So the fee on this card is 25 pounds per year and what it gives you is a slightly different offer in terms of the percentages. So for the first three months, if you spend up to two and a half thousand pounds, you will get five percent cashback on that amount for any amount beyond that. You'll actually earn one percent for the first 10 000 and then you'll earn 1.25 percent for anything.

Above the 10 000 mark - and this is where people say well - the 25 pounds basically starts you off in a negative position versus the other credit card and i've seen all kinds of weird advice where people say. Oh, if you're going to be spending below 10 000, you should go and get the card without the fee. And if it's going to be above 10 000, then you should get the one with the fee. And the maths here is really really simple.

If you want to get one of these american express, cashback credit cards and you're gon na go and max that introductory offer, you should always go and get the card that has the fee. Let me explain: the platinum everyday card actually has a clause that i think most people haven't actually seen within the terms conditions which says that you can only qualify for the cashback payout if you spend at least 3 000 pounds in a year. So if you do go and spend 3 000 pounds on that card, how much cashback are you gon na get so the first 2000 will yield you that 100 pound bonus that you get in the first three months. So i'm presuming here that, if you're going to take one of these credit cards out that your intent is to put everything you can so any big expenditures that are coming up, whether that's a car service, whether that's something else you're going to try to go and Put them on that card and certainly all your shopping and all your bills and all your household expenditure on anything that you can pay with an american express.

So assuming you do that, then you have 1 000 pounds remaining and that will be paying you 0.5 percent. So 0.5 percent on a thousand pounds is five pounds, so that means the total amount that you're going to be getting from that card for a three thousand pound spend is a hundred and five pounds. So if you look at the other credit card, the platinum cashback one, how much will that pay you for three thousand, so the first two and a half thousand pounds will yield you five percent. Therefore, you will get 125 pounds, then you will also have another 500 pounds which will yield you one percent cash back.

So that's another five pounds on top. But then, when you subtract the 25 pound fee that you've had to pay, you have earned exactly the same 105 pounds. So if you're going to be earning anything more than that, then on the platinum, cashback credit card, you will now be earning one percent for every incremental pound that you spend, whereas in the platinum everyday card, you'll only be earning 0.5. So if you're planning to spend less than 3 000 pounds, then the platinum everyday card will not pay you anything anyway and if you're planning to spend more, then in every single circumstance, you will actually earn more by using the platinum cashback credit card rather than the Platinum everyday credit card now, for the sake of transparency, let's quickly mention the other cashback credit cards that still exist in the market.

There are three first, the santander, all-in-one credit card that offers you 0.5 cashback, but you have to pay a three pound per month fee, and that means that you need to go and spend 600 pounds per month just to break even on the cash back. So you're only actually earning money rather than losing money on any spent above 600 pounds. So for the average person, that's probably a relatively steep ask because you're probably only going to be making very, very, very small amounts of cashback compared to those amex credit cards. The next one is rbs reward, and that gives you one percent on spending supermarkets, which is decent, but only not 0.25 on spend elsewhere.

That actually comes with a 24 pound per year fee, which is equivalent to 2 pounds a month. So again, if you do the maths, you're actually probably going to be making a very, very small amount of cashback after you account for that two pound fee that you're gon na have to be paying for the privilege of getting access to the cashback. The last one. On my list is barclaycard rewards that is still kicking about and still there there's no fee, but you're only going to be earning 0.25 back.

So that's not a very large amount of money per 100 pounds. You're gon na be spending on that card. You're only going to get 25 p in cash back, it's almost not worth even bothering to go and spend your time doing the application, because you're not ever going to earn any money that will be actually worth the time it took you to fill in that application. In the first place, just a couple of really simple pointers for people who maybe previously haven't used, cashback credit cards or just not quite sure you only get paid cashback on normal retail spend.

So that's basic everyday normal spending that you will do on your credit card. You will not get cash back for things like doing balance, transfers, money, transfers or withdrawing cash, so don't expect to be paid for doing those types of things it's only whenever you're paying for something in a shop or online using your credit card. The other thing to remember is that american express is very widely accepted and most big supermarkets, big stores, lots of big online shops - will accept it and you can pay through paypal by using that card as well. There's lots of different ways that you can go and spend using that credit card, but there's still a number of different places which weren't accepted.

There's a lot of very small retailers who choose not to accept american express and some big ones as well. They do vary. Sometimes they begin accepting it. Sometimes they stop accepting and the reason they don't is because american express is legally allowed to charge the retailers a much higher amount of money for processing the transaction than visa or mastercard.

There's i'm not going to get into the details of that there's some very specific, very weird legislation that allows them to do it and not the others because of the way they are legally set up. What this really means is for the majority of regular everyday transactions for buying petrol for buying your groceries in the supermarket, or anything like that. You should be just fine. You just need to remember that you can't rely on just that.

One credit card for all of your payments: you should always have some form of a backup whether that's your debit card or a different credit card, just in case you're somewhere trying to buy something and that particular store doesn't accept. American express last thing to note is cashback doesn't get paid very frequently. The terms conditions are slightly different for all these, but what will happen is you'll, be spending on that credit card for months and months and months and you're only going to receive the cash back. Typically, after your one-year anniversary go and check the terms and conditions, because this does change from time to time and the different providers do it slightly differently.

But what this means is don't expect to get paid cash back the month after you've gone and done. Some big spent you will have to wait some time for that money to actually arrive and you will not be paid it physically. You won't go into your bank, account you're not going to get a check. You'll just get taken off your bill.

So essentially, you won't ever see the money, but you'll be able to spend it indirectly by paying for stuff using your cashback credit card, and that money will then be taken off on the statement after your anniversary whenever that cashback is credited. I hope you guys found this useful. If you have please go and hit that like button for the youtube algorithm, it will help this video be shown to more people who might want to go and get a cashback credit card, but not realize it. Yet, if you're interested in content about personal finance, about making money and doing more with the money that you do have make sure you subscribe to this channel, that is exactly what i talk about three times a week on monday, wednesday and friday.

Thank you so much for watching and i'll see you guys later.