The economic slowdown and the increased rate of inflation are having a detrimental effect on the state of personal finances.
Saving is harder than ever, with Brits experiencing the lowest interest rate on record and the cost of living continuing to soar. The recent unemployment figures highlight the fact that things are not set to improve any time soon.
With this in mind, many are looking to make the most of their financial products. There are numerous reward schemes available on credit cards, but the banks are beginning to realise that spending points and air miles don’t fit the bill for cash-hungry consumers any more.
Santander 123 credit card
The Santander 123 credit card provides cash back on ‘everyday spending’ and is available to all new and existing customers until November 6th.
The credit card has an annual fee of £24 and a representative APR of 22.8%. The main benefits of the card are that consumers will receive 1% cash back on supermarket spending, 2% on spending in a department store and 3% on fuel.
On average, Santander says that customers can expect to receive £176 a year in cash back.
With the average family having £14 less to spend each week and a £2,000 decline in incomes forecast for 2013, this means that Santander credit card holders are likely to see a tangible return.
However, the card has an annual fee of £24 which means that, unless customers use the card for most of their spending, it’s unlikely that they will earn their cash back.
Capital One Bank
The Capital One Bank is offering 5% on the first 3 months of purchases up to £100. Capital One does not charge an annual fee. However, after the introductory period the cash back rate is 1.25%, significantly lower than the Santander credit card. The representative APR is 19.9%.
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