We love credit cards that ‘reward’ but which can you benefit from the most? Here we help you decide.
Big red flag: Always pay off your bill each month, the deals aren’t worth it if you end up paying interest.
What’s the best cashback deal?
The Amex Platinum Cashback Card offers 5% for first three months, up to £125, and 1.25% thereafter as long as you spend at least £10,001 a year (£834 a month on average). The annual fee is £25.
How much cashback can you earn?
If you spend £1,000 a month, you’ll receive £125 in first three months and £12.50 per month after. That is £210, after the fee, in the first year and £125 a year after. Easy money for zero work.
What’s the best air mile deal?
The British Airways Amex Premium Plus is free and gives you:
• A welcome bonus of 5,000 air miles if spend £1,000 in first three months
• 1 air mile for each £1 spent
• 2-for-1 travel Companion Voucher when you spend a minimum of £20,000 in a year
Using the same example as before, spend £1,000 a month on the card you will earn 17,000 air miles in the first year and 12,000 a year after.
Where can you fly for 17,000 air miles?
Bonjour, Hola, Guten Tag, … these miles will take you to most places in Europe; a trip to Barcelona in June, for example, will cost you 13,000 miles plus £50. BUT, there is a catch because air miles can only be used as a discount on the airline’s margin which means you still have to pay the taxes.
You can also use air miles to get an upgrade but, again, it’s a discount and you have to pay more for a seat with champagne and a bed.
The thing about Companion Vouchers…
Spend £20,000 on the card and you will get an extra seat on the same flight when you book your using your air miles. Don’t think of this as a completely ‘free ticket’ because you have to pay the taxes and other fees. Instead consider it as doubling your existing air miles for one flight.
So, is it worth it?
Do the maths and you discover that £20,000 spent will give 25,000 air miles in the first year. To be frank, this isn’t even enough to go from the UK to New York.
The best way to use this 2-for-1 offer is to rack-up miles over at least two years. This way you can use the Companion Voucher towards a long haul flight (with an upgrade if you have enough miles).
MOXI Round-Up
Choosing air miles or cashback ultimately comes down to how much you spend each year. Here’s what we think...
If you spend less than £10,001 then an air mile card (with no annual fee) is best. Your tactic will be to rack-up the miles over a few years.
If you spend at least £10,001 cash back may be best because you are guaranteed to use it whereas air miles may go unused until you find the Reward Flight you want.
If you spend at least £20,000 an air mile card may be best as long as you can make use of the Companion Voucher. If you can’t, stick with cash back.
Still confused? Here’s a comparison table showing the reward to yearly spend:
| Yearly Spend | Cash Back (after fee) | Air Miles |
| £5,000 | £25 a year | 10,000 in first year and 5,000 after |
| £10,001 | £210 in first year and £125 after | 17,000 in first year and 12,000 after |
| £20,000 | £290 in first year and £250 after | 25,000 in first year and 20,000 after, plus one Companion Voucher a year. |
You can apply for either of these cards via the following links: