Credit Card

Tandem cashback credit card users hit with £6 monthly fee – what are the best alternatives?


One of the country’s most generous cashback credit cards is to start charging its users a £5.99 monthly fee.

The Tandem Cashback credit card offers users 0.5pc cashback on all purchases. This bonus applies to spending in Britain and abroad, making it one of the most attractive cards on the market.

However, from March 9 customers must agree to pay a £5.99 monthly fee if they wish to continue using the card. This means that account holders will have to spend £1,200 each month to cover the new monthly charge with the cashback payment.

Customers will receive some additional benefits, including a linked savings account paying 1.5pc, and will also be entitled to ongoing interest-free spending on the card. Users are currently charged between 18.9% and 29.9% APR if they do not pay off their balance at the end of the month.

Those who do not agree to pay the new £5.99 monthly charge will no longer be able to use their card after March 9. Any outstanding balance must then be repaid based on the original terms and conditions. 

This move is the latest blow to the cashback credit card market. The changes can largely be attributed to EU legislation introduced in December 2015, which limits the amount that card companies can charge retailers for using their services. In turn, this has restricted the cashback and rewards that can be offered, as it is no longer profitable for many card companies to do so. 

There are now only a handful that offer users the chance to earn as they spend. Telegraph Money has looked at the options.

American Express Platinum Cashback 

This offers 5pc cashback, but only for the first three months, capped at a total of £125. Account holders will get between 1pc and 1.25pc cashback thereafter. 

Card holders who spend up to £10,000 after the first three months will earn 1pc. Spend £10,001 or more and the cashback rises to 1.25pc. 

The catch: There is an annual £25 charge. Plus, not every outlet accepts American Express, so you may need to carry a back-up card. 

American Express Platinum Cashback Everyday 

The fee-free version of the card above comes with a less attractive cashback offer. It pays 5pc cashback for three months, up to £100 in all. Account holders will then get between 0.5pc and 1pc cashback thereafter.

Card holders who spend up to £5,000 after the first three months will earn 0.5pc. Spending £5,001 or more is rewarded with 1pc cashback. 

The catch: You must spend at least £3,000 a year to qualify for cashback, and remember that some retailers will not accept American Express cards. 

Santander All in One Credit Card

The first high street bank on our list, Santander’s card offers 0.5pc cashback on all spending. There are also attractive offers available for those looking to spend interest free or transfer a balance from another provider.

The catch:The card costs £3 a month, which reduces the amount of cashback earned.

Aqua Reward Card

The fee-free Aqua card pays 0.5pc on all spending and doesn’t charge extra for purchases abroad.

The catch: The cashback is limited to £100 a year and there’s an astronomically high interest rate if you fail to pay off your balance each month – the card charges an eye-watering 34.9pc.

NatWest Reward Card

This offers the equivalent of 1pc in cashback on supermarket spends and 0.5pc at other retailers, although the latter rate will fall to 0.25pc on February 1 2020. 

The catch: There is a £24 annual fee for holding this card, although this is waived if the customer also holds a Reward current account.


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