When cashback beats points
Reward points can unlock outstanding value — but only if you know how to use them. For many people, simple cashback is more valuable in practice: no complexity, no expiry dates, no minimum redemptions.
Points vs cashback — the honest comparison
When points win
- ✓You travel regularly and can use Avios or Amex MR for flights
- ✓You understand how to convert points to airline/hotel partners
- ✓You're patient — you accumulate before redeeming
- ✓You shop at Tesco or Sainsbury's and use partner redemptions
- ✓You can hit welcome bonus thresholds to earn large point batches
When cashback wins
- ✓You don't travel by air and have no use for Avios
- ✓You find points confusing or prefer simplicity
- ✓You want to see the value automatically — no redemption required
- ✓You spend across many different categories without a pattern
- ✓You want something that works even if Amex isn't accepted
The honest take
Points are potentially more valuable than cashback — but only in the hands of someone who will actively use them well. A 1% cashback card delivering guaranteed 1p per £1 will outperform an Amex MR card where you consistently redeem at statement credit rates (0.4p per £1). Know yourself: if you're unlikely to research flights and plan redemptions, cashback might genuinely suit you better.
Best cashback cards in the UK
Amex Platinum Cashback Everyday
Welcome offer
5% cashback for first 3 months (up to £100)
Best free cashback card. The welcome offer is excellent — worth up to £100 in year one. The ongoing 0.5% rate is unspectacular but the card has no fee so there's nothing to lose.
Pros
- ✓ No annual fee
- ✓ 5% welcome cashback
- ✓ Amex purchase protection
- ✓ Simple — cashback applied automatically
Cons
- ✗ 0.5% base rate is modest
- ✗ Amex not accepted everywhere
- ✗ 1% rate only kicks in above £10k/year
Amex Platinum Cashback
Welcome offer
5% cashback for first 3 months (up to £125)
Best paid cashback card. At £25/year, you need to spend £2,000/year at 1.25% just to break even on the fee. Above that, it outperforms the free version significantly. Suits regular spenders who put most daily spending through one card.
Pros
- ✓ 1.25% is among the best UK rates
- ✓ 5% welcome offer
- ✓ 2.5% on high spend
- ✓ Amex extras (travel insurance, purchase protection)
Cons
- ✗ £25 annual fee
- ✗ Amex not always accepted
- ✗ Fee eats into returns at low spend
Santander All in One
Welcome offer
None standard
A reliable Visa cashback card with wider acceptance than Amex. The 0.5% rate and £36 fee means you need to spend £7,200/year to break even on the fee. Worth it only if Amex acceptance is a problem for you.
Pros
- ✓ Visa — accepted everywhere
- ✓ 0.5% is steady and reliable
- ✓ Includes 0% balance transfer offer
Cons
- ✗ £36/year fee
- ✗ Lower rate than Amex options
- ✗ No welcome bonus
Chase UK Debit Card
Welcome offer
1% cashback from day one
Technically a bank account debit card, not a credit card — but worth mentioning because the 1% cashback on a free debit card is exceptional. Ideal as a companion card alongside an Amex. The monthly cap means high spenders won't maximise it, but for everyday amounts it's outstanding.
Pros
- ✓ 1% is excellent for a free card/account
- ✓ Debit card — no credit needed
- ✓ No foreign transaction fees
- ✓ Instant cashback
Cons
- ✗ Cashback capped at £15/month after year one
- ✗ Debit card not a credit card (no Section 75)
- ✗ Chase is a relatively new UK bank
M&S credit cards — worth it?
M&S Bank offer credit cards that earn M&S points (called “M&S Rewards”). They're marketed as reward cards but the value is quite limited.
The earn rate problem
M&S credit cards typically earn 1 point per £1 at M&S and 1 point per £5 elsewhere. Points are worth 1p each, redeemable as M&S vouchers. That works out at 1% back at M&S (fine) and 0.2% back on general spending (poor). The Tesco credit card has the same problem — locked into one retailer with weak general earn rates.
Who it might suit
If you spend heavily at M&S specifically (food, clothing, home), the 1% in-store earn is reasonable. The M&S card is also often used as a beginner reward card — no annual fee, simple cashback-style redemption. There's nothing wrong with starting here. But if you're optimising for value, an Amex cashback or MR card will outperform it on general spending by a wide margin.
Bottom line
M&S and Tesco credit cards are store-branded reward cards. They make sense if M&S or Tesco is your primary supermarket and you want a simple, no-fee reward. They don't make sense as your main spending card if you want to maximise return on all spending. Treat them like a loyalty card with a credit line attached — useful in one specific context, not a general-purpose optimisation tool.
My recommendation
If you want simplicity
Amex Platinum Cashback Everyday
No annual fee. 5% for 3 months. 0.5%–1% ongoing. No decisions required — cashback lands automatically.
If you want maximum return
Amex Gold (MR points)
Free in year 1. 20,000 MR welcome bonus. Transfer to Avios or other partners for 1.5p–2p+ per point if you travel.
If Amex isn't accepted enough
Chase Debit + Amex combo
Use Chase (1% cashback, free, Visa) for places that don't take Amex. Use Amex Gold everywhere else for MR points.
Updated April 2026 — subject to change. Card rates, fees, welcome bonuses, and cashback terms change regularly. Always verify the latest offer on the card provider's website before applying. Not financial advice. Some links may be affiliate links. See affiliate disclosure.