The Halifax 1% cashback card: is it worth it?

Recently, rates on many cashback credit cards have dropped to just 0.5% or less. Some, like the RBS Black Credit Card, even have an APR of 51.8% and charge a £250 annual fee.

But one card that still stands out from the crowd, as recommended by, is the new Halifax cashback credit card.

The card pays 1% cashback on supermarket and petrol spending, and 0.5% on "other purchases".

The cashback card is a Mastercard with no annual fee. Unfortunately, the cashback is limited to £150 a year, and requires a minimum spending of £1,250 a month to claim the full amount.

Some might prefer the American Express Platinum card that pays 5% for the first 3 months, but that has a maximum of £2k spending during the introductory period, which drops to between 0.5%-1.5% afterwards.

The Halifax cashback mastercard raises the question of whether the varied interest rate of 15.9% to 21.9% (depending on your credit ratings) is worth the cost/benefit of the savings.  Also, not every supermarket is taking part in the scheme. The ones that are include Tesco, Sainsbury's and Morrisons. Petrol coverage includes Shell, Esso, and BP.

The card is only available online via the Halifax website.

Question is, could this be an expensive mistake for the average consumer, with the exception of the rare creatures that pay off their card balance fully at the end of each month? And if you have cashback cards, what are your favourites, and why?


  • Darren W.
    Dont want to sound like a T*T here or anything, but how do you do a minimum spend of £1250 a month on a credit card?? I mean surely you have your debit card for that? I would panic if my credit card went over £100!
  • Vince W.
    You're a good saver then, Darren ;)
  • Darren G.
    Darren W, if you can use your credit card wisely and pay it off each month in full you should ALWAYS use it 1) Get some form of cashback 2) Delay payment for a month so you are earning interest on your savings for longer (a whole 0.1% no doubt) 3) Extra benefits on warrenties if the supplier goes bust. 4) 0 fraud liability etc etc of course 1 month of not paying the full balance wipes out a years worth of benefits, and you have to not be tempted to over spend...
  • Will
    I have an Egg Mastercard with 1% cashback on everything. I always pay it off in full automatically via Direct Debit every month, so I don't need to worry about the interest rates etc. However, i've got a rate of only 7.9% anyway. :) Egg aren't offering that card (Egg Money Mastercard) anymore as far as I know, but The Halifax one looks alright. You should definitely go for a cashback card if you pay back in full every month - no reason not to, really.
  • acecatcher3
    whilst we are talkin about cashback, i went thru quidco for betfair and on my quidco i had to validate it with my username and it now says "tracked" but it says £0.00...what does this mean??? its said that for a while now....anyone able to help??
  • cbryanp
    Yeah acecatcher I was in the same position as long as you have validated it in your earnings bit then it shoudl change to the full amount soon enough. Good luck with your bets
  • Deepz
    I have the Platinum AMex which is good. Shows how much I have got back on my statement. I use it for business expenses which I can claim back so its worthwhile. It is important to pay it back in full. I am not sure if I could spend over £1,000 a month on it as not everywhere accepts the AMex. I usually spend between £500 and £2000, but I just put it on the card to get the cashback (better than using my debit card and getting nothing for spending the money!). That being said, I got a high interest rate on my Halifax debit (like 5% for the year) but for that I needed to change banks and have my salary paid into the new account. So even for that, paying by credit card means the money is in my bank for that much longer (so interest gets paid) then when AMex take it out, they give me cashback... win/win!
  • acecatcher3
    thankyou bryan, i already did my bet, made £18 and withdrew as im not a gambler, was just making sure that i was infact going to be £18 up and not down £12 if the quidco hadnt tracked properly..thanks again!
  • cbryanp
    same here! Quidco was too tempting not to give it a go. Congrats ps you should come back to is shockingly quiet
  • acecatcher3
    yeah that wont be anytime soon im afraid, yeah i only did it for quidco, its free money isnt it really!, ill be looking at others to do that with once the betfair thing is sorted out!
  • Jill
    To be fair, with the RBS card you get a personal assistant, personal travel agent, VIP access at some sporting events, travel insurance for the family, car breakdown cover throughout Europe, home emergency insurance and access to the executive lounges in airports for two people. Not really as bad as you made out.
  • speedski
    The best card out there at the moment is the Barclaycard Simplicity - 6.8% APR, no annual fee and none of this dodgy possiblity of cashback if the world, sunlight and oxygen levels all alight just at the right moment... want rip off, well you could get a Vanquis VISA, last time they spammed my village the offer on the envelope had 128% APR on it...
  • Mike H.
    Good job I got meself an egg money card before they stopped it innit?
  • payday l.
    I am not certain the place you are getting your info, but good topic. I must spend some time finding out much more or figuring out more. Thanks for magnificent info I was in search of this info for my mission.

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