It’s estimated that the average person can make £325 a year through cashback. So, if you’ve missing out, here’s all you need to know to start making savings on your everyday purchases…
What is cashback?
It means getting a cash reward when you buy something. It’s usually for online purchases but it can be for in store shopping too. When you click through from a cashback site to purchase something, they receive commission from the retailer, and you receive a cut of that.
Abigail Yearley, spokesperson for TopCashback.co.uk said: ‘Saving money through cashback sites is easy and sustainable – it can definitely be something that is kept in your everyday money choices.
‘Shoppers can purchase any number of products or services they would usually buy but get money back for free. Whether this be a small amount for a one-off purchase or a sizable chunk of money when for example, renewing your car insurance, you’ll see the earnings go up consistently, and steadily. ‘On average TopCashback members save £325 per year, which can then be put in a savings account, invested, or put towards your car insurance next year instead if you wish. Once you get into a habit of shopping through cashback sites, the savings you can make are endless.’
What kind of things can you earn cashback on?
Everything from clothes, toys and electronics, to groceries, holidays, insurance, or switching energy or broadband providers. All sorts of purchases that you would be making anyway.
Examples of cashback sites: Quidco and TopCashback, Swagbucks, and if you want your cashback to go into a savings account for your child, KidStart might be the best cashback option for you, or you can donate your rewards to children’s charities.
How to use cashback sites
- Choose a cashback website
- Search for a deal on the product or service you’re looking to purchase
- Click the link provided
- Complete the purchase – the retailer then sends commission to your cashback site, and a portion of this money is transferred into your bank or PayPal account. You may need to reach a certain cashback threshold before you can withdraw your money.
Is it free?
Most cashback sites are free to register but may charge a small fee for premium membership.
How to make the most of cashback?
These sites offer new member bonuses (usually extra free money, or a free product) so hold off on signing up until you see a signing up offer that’s worth taking advantage of.
Incentives are offered to earn more cashback by referring friends. Also, if you find a better deal on another cashback site, some will match these rates, so if you do the work, you can make sure you’re always getting the best cashback deal.
Payment
The cashback can be paid into your PayPal or bank account or you can usually choose to have it paid out in a wide range of retailer gift cards, including Argos, Amazon and Boots vouchers. Cashback sites can sometimes take a long time to pay out and in some instances, the transaction doesn’t track at all (usually due to lack of cookie trail).
What are the pitfalls?
It’s easy to get cashback tunnel vision and forget that cashback deals are not always the best deals available. Sometimes money off vouchers or other deals can offer greater savings than the cashback rewards. So do your research.
To be paid your cashback, there must be a cookie trail which shows it was the cashback site that led you to the retailer’s website. So, if you’ve already browsed the retailer’s website and then decide to take advantage of the cashback promotion, you’ll need to first delete your cookies, so there’s a new cookie trail between the cashback site and the retailer. Failure to do this could mean you don’t receive your cashback.