While earning money back on your everyday spending sounds appealing, it is important to understand exactly how the card works, which categories qualify for the bonus cashback, and whether it is best for your monthly spending habits. In this article, we explain the key features of the Santander Rewards credit card, how much you could earn, and the essential details to look out for.
How the Santander Rewards credit card works
The Santander Rewards credit card is a cashback card, a type of credit card that pays you back a percentage of your spending. It offers a boosted 3% cashback on selected purchases for the first 12 months, then drops to 0.25% on all purchases. The cashback is credited directly to your credit card account monthly, meaning you do not have to wait until the end of the year to benefit.
Key features of the card include:
- 3% cashback in year one - You can earn 3% cashback on everyday travel, fuel, eating out, and takeaways for the first 12 months.
- 0.25% cashback on other spending - Any purchases made outside of the 3% categories will earn 0.25% cashback. After the first year, this 0.25% rate will apply to all of your purchases.
- No monthly fee - Unlike some premium reward cards, there is no monthly or annual account fee to hold the card.
- No foreign exchange fees - The card does not charge foreign transaction fees when you make purchases abroad in the local currency.
- Representative APR - The card has a representative annual percentage rate (APR) of 24.9% (variable). This is the interest rate you will be charged on your borrowing if you do not clear your balance in full each month.
- Eligibility - Applicants must be UK residents aged 18 or over, with a good credit history and a guaranteed annual income of at least £10,500.
How does the cashback work?
The headline 3% cashback rate applies to specific spending categories for the first 12 months, which include:
- Everyday travel - Trains, buses, taxis, and Transport for London (TfL) payments.
- Fuel and charging - Petrol, diesel, and electric vehicle (EV) charging away from home.
- Eating out and takeaways - Spending at restaurants, cafes, and on takeaway delivery services.
It is important to understand how retailers are classified. Credit card networks use Merchant Category Codes (MCCs) to identify the type of business you are buying from. Because of this system, spending at pubs, bars, or hotel restaurants may not earn the 3% rate if they are categorised differently from standard cafes or restaurants. Similarly, some supermarket petrol stations might not qualify, though Santander notes that most should.
How much cashback could you earn?
Below, we have calculated the potential return for a typical UK consumer who uses the card for their daily commute and socialising.
| Spending Category | Cashback Rate | Example Monthly Spend |
Monthly Cashback Earned
|
| Fuel and everyday travel | 3% | £150 | £4.50 |
| Eating out and takeaways | 3% | £100 | £3.00 |
| General spending (e.g. groceries and clothing) | 0.25% | £800 | £2.00 |
| Total | £1,050 |
£9.50 (£114 per year)
|
Is the Santander Rewards credit card worth it?
If your monthly outgoings are heavily weighted towards commuting and dining out, the Santander Rewards credit card could prove lucrative for you, especially in its first year. The lack of an annual fee and the absence of a cashback cap make it a strong contender for those who spend heavily on fuel or public transport. Furthermore, the inclusion of fee-free overseas spending provides an added bonus for frequent holidaymakers.
However, if your travel and dining costs are relatively low, you might be better off looking elsewhere. For example, the Lloyds Ultra credit card offers a flat 1% cashback on all spending categories. If your primary expense is the weekly supermarket shop rather than restaurant meals or train tickets, a flat-rate card could ultimately work out better for you.
As with any credit card, if you do not clear your statement balance in full every month, the interest charged on borrowing will quickly wipe out any financial gains made through the cashback rewards. So while the Santander Rewards credit card ranks well among the best cashback credit cards in the UK, if you are looking to spread the cost of your spending by not paying your balance off in full every month, you are better off with a long-term 0% purchase credit card.
£200 Pension Cashback Offer
Make a qualifying deposit or transfer a pension to our partner Interactive Investor.
- Deposit or transfer a pension of at least £20k and you could earn £200 cashback
- Terms and Fees apply, Capital at risk
- New & Existing customers opening a SIPP
- Offer ends 30th June 2026
Before starting your transfer, check you won't lose any valuable benefits (such as guaranteed annuity rates or a lower protected pension age) and find out what exit fees you might have to pay
