Lloyds Bank has launched a fee-free cashback credit card that offers up to 0.5% cashback on purchases, making it the first new cashback card to hit the market since 2018.
In this article, we take a look at the Lloyds Bank Cashback credit card’s main features, and show you how it measures up against the competition.
How the Lloyds Bank Cashback credit card works
The highlights of the card are that it offers:
- 0.25% cashback up to £4,000
- 0.50% cashback over £4,000
- £20 bonus on £1,000 within the first 90 days
There is no cap on the amount of cashback you can earn on the Lloyds Bank Cashback credit card. You can earn 0.25% cashback on the first £4,000 of purchases per calendar year, and 0.50% cashback on purchases once you surpass £4,000. Plus, you could get a £20 cashback bonus if you make £1,000 of purchases within the first 90 days of account opening.
The Lloyds Bank Cashback credit card comes with a representative 19.90% APR (variable), making its interest rate slightly lower than the most popular competitors' cashback cards, such as American Express's Platinum Cashback Everyday card with 22.20% APR and Barclaycard's Reward card with 22.90% APR.
You could earn cashback with a Lloyds Bank Cashback credit card on day-to-day spending such as your daily coffee and weekly shop, as well as at places like petrol stations and restaurants. Contactless and online purchases also count, and you could also get cashback on any bigger purchases you might have planned, as there is no limit to your spending. All the cashback you earn will show as a running total on your monthly statement and will be applied to your account in the January of each calendar year.
What purchases do not qualify for cashback?
However, it is important to note that you will not earn cashback on the following transactions:
- Balance or money transfers.
- Cash withdrawals and transfers.
- Gambling transactions - e.g. casinos, betting outlets, or bookmakers.
- Account interest, fees, or charges.
- Payments to current, savings, share-trading, spread betting, gambling, or any similar accounts.
- Payment protection transactions.
How does the Lloyds Bank Cashback credit card measure up?
The new Lloyds Bank Cashback credit card offers a competitive APR, but its cashback rate can be beaten by other cards on the market, such as the flat 0.50% cashback on all spending with Santander’s All in One card.
The Lloyds card launches as market-leader American Express is due to change the terms for two of its popular cashback cards - the Platinum Cashback and Platinum Cashback Everyday cards - on 4 August 2021. Head to our article "American Express cuts cashback offer – what you need to know" for more details on the changes to the American Express cashback cards.
|Cashback Credit Card
|Lloyds Bank Cashback
|0.25% up to £4,000, 0.50% over 4,000
|American Express Platinum Cashback Everyday
|0.5% up to £5,000, 1% over £5,000 (to change on 4 August 2021, when you will need to spend over £10,000 to get 1% cashback)
|Santander All in One
To look at more of the best deals, visit our article “Which are the best cashback credit cards UK? Earn while you spend”.
How do I apply for a Lloyds Bank Cashback credit card?
You can apply for the Lloyds Bank Cashback credit card directly via Lloyds' own website, where you can also make use of its integrated “One Check” eligibility checker to find out if your application is likely to be accepted. Click the link here to begin the application process.
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