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Asda’s new Cashback Plus Credit Card pays 2pc cashback on all Asda purchases including instore, online and on fuel.
Card holders can also earn 1pc cashback on spend elsewhere in the UK and abroad and 10pc cashback on Asda insurance products.
This makes it an eye-catching proposition when many cashback cards are cutting their perks, partly as a response to EU rules on payment systems.
For those signing up to Asda’s deal who have card balances elsewhere, there is 0pc on balance transfers for 15 months.
The catch, though, is a monthly £3 fee. How does it stack up?
Verdict
The 2pc cashback on Asda purchases is a decent offer if you are already a regular Asda shopper and the 1pc rate on spend elsewhere is also appealing. However, the £36 fee is on the higher end of the market.
The cashback is not worth anything until it is converted into a voucher which can be spent in store.
But you only have 28 days to use the voucher (which can be printed or displayed at the checkout on a smartphone) and the vouchers can’t be spent on Asda fuel.
Card holders who spent £120 a week on Asda shopping and £85 a week on fuel would earn £213.20 a year in cashback.
If £200 a week was spent on the card outside of Asda, a further £104 could be earned in a year. Minus the £36 fee customers would earn £281.
The Cashback Plus Credit Card’s 15-month 0pc period is an added bonus and is particularly useful for those looking to consolidate debts.
However, other providers offer longer zero-interest terms.
Sainsbury’s Nectar Purchase Card offers a zero-interest term of 27-months. This card also offers two Nectar points per £1 spend on shopping and fuel and one Nectar point for every £5 spent elsewhere.
Those who apply for the Sainsbury’s card before September 16 will also earn 5,000 bonus Nectar points if they spend £800 in store or on Sainsbury’s fuel in the first three months. This is worth £25.
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American Express’s Platinum Cashback Card offers the highest cashback rate of 5pc cashback – but this is only for the first three months. The cashback is capped at £125.
After three months the reward is reduced: 1pc cashback is applied to spend up to £10,000. Above this, the rate increased to 1.25pc. The card is cheaper than Asda’s at £25 a year, although not every business accepts an Amex.
American Express also offers a fee-free card which offers 5pc cashback up to £100 in the first three months. It then pays 0.5pc on purchases between £0 and £5,000 and 1pc cashback on spend over £5,001. You need to spend at least £3,000 in a year to get any cashback.
Like Amex, Asda has another fee-free card with lesser perks.
The straightforward Asda Cashback Credit Card pays 1pc on Asda purchases and 0.5pc on other spend.
Those who spend £120 a week in Asda, £85 a week on fuel and £200 on the card each week elsewhere would earn 158.60 cashback in a year. The card also offers 0pc on balance transfers for 12 months.
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