It’s a top rate of cashback – but what’s the catch?
There’s not been much action in the cashback credit card arena for ages and suddenly, there’s Santander with a brand new (and very generous) offer.
Not only does it offer a top 3% rate of cashback on certain categories of spending but, unlike rivals, it’s also uncapped.
But is it as good as it seems?
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What does Santander’s new card offer?
The main pull here is definitely the 3% cashback – but there’s also other perks.
For the first year you can earn 3% cashback on three different categories.
This includes:
- Everyday travel – train tickets, buses, TfL and taxis plus petrol, diesel, LPG and electric vehicle charging away from home
- Eating out and takeaways – restaurants, cafes, takeaways and takeaway deliveries
You’ll also get 0.25% cashback on everything else you buy.
After the 12 months is up the cashback rate falls to 0.25% for another year.
The card is free-free and you can also add up to three extra cardholders on your account. They must be close family members who live at the same address as you. While they could help you build up more cashback, you’ll be responsible for use and payments made on these cards.
For holiday spend you won’t be charged a foreign transaction fee for purchases and cash withdrawals in the local currency. However, you’ll have to pay a 3% cash transaction fee (a minimum of 3%) on any cash withdrawals made anywhere – both on holiday and at home. You’ll also pay 29.9% interest on the cash you take out from the day you withdraw it.
What’s excluded from the 3% cashback?
Santander decides what purchases are eligible for the cashback by using Merchant Category Codes (MCC) – these tell you who the retailer is based on what they sell.
However, it means that some businesses won’t have the right code to get you your 3% cashback even if you make eligible purchases.
For example, petrol stations attached to a supermarket have a different code from standalone petrol stations so you might only earn 0.25% when you buy petrol from them.
You’ll also get the lower rate of cashback when you buy food from most pubs, bars and nightclubs.
Other exclusions for the 3% cashback include travelcards, bus and tram passes, Oyster card top ups made at shops like newsagents and off-licences, train tickets bought from travel agents or tour operators, NI Railways train tickets bought online, holidays, steam railway trips, Eurotunnel Le Shuttle and congestion charges.
Overseas spending remains a bit mysterious – you might earn 3% cashback on eligible purchases abroad but it’s not guaranteed as the codes can differ abroad.
You’ll not earn any cashback on other spend like gift vouchers or insurance bought from supermarkets, petrol stations or department stores, travellers cheques or holiday money. Any purchases made over your credit limit won’t count either.
You also won’t get cashback if you use the card for business purposes.
How much could I earn?
So this will depend on where you usually spend your money.
But say in a month you spend £100 on train tickets and petrol, £150 on takeaways and restaurants, and £500 elsewhere, you’d earn £8.75.
When is the cashback paid?
The cashback’s added up the month you spend it and it’s added to your account the next month.
Who can get the card?
You need to be at least 18, live in the UK permanently and have an income of £10,500 or more each year.
Santander’s Reward credit card vs other cards
Our favourite cashback card at the moment is the debit card from Trading 212. It offers a set rate of 0.5% but regularly boosts this to 1.5% and is free to use abroad. It’s capped at £15 a month so after £1,000 you’d have to look for another card.
For this, Lloyds Ultra is one of our top picks as it gives you 1% cashback fee free. You’re not restricted by category or a monthly cap and you can use it overseas with no fees.
We also like the American Express Nectar card and Barclaycard Rewards card, as a backup.
You can read more about our top cashback and reward cards on the website.
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Is the Santander Rewards credit card any good?
The headline 3% rate certainly grabs attention, but when you get into the detail, you’re unlikely to earn much unless you live a certain lifestyle because you can only earn the top rate on certain types of spend. Those who’ll make the most money will be people who commute to work, who eat out a lot or who get plenty of takeaways.
So for someone like me who works from home, cooks and lives in a city where everything is within walking distance, I’d be much better off with a cashback card without restricted categories even if the total cashback you can earn is capped.
Saying that, the Santander card might well suit you but for more general, unrestricted use, you could be better off with one of the other credit cards that pay a slightly lower cashback rate but offer it on more purchases.
Featured switching deal
Customer rating
3.9/5
- Switch bonus£180
- Offer endsUnknown
- FSCS Protected? Yes
- Switch bonus requirements Switch using the Current Account Switch Service and close your old account within 60 days of starting the switch
- Deposit requirements Deposit £1,500 in the first 60 days from opening the account
- Direct debits transferred over Set up two Direct Debits before or after the switch from a selected list of household bills
- Existing customers? Can't have held any Santander current account on 1 January 2025
- Restrictions Can't have received a switching bonus from Santander already, offer limited to once per person
- Eligible accounts Open a new or hold an existing Everyday, Edge, Edge Up or Edge Explorer current account
Santander Rewards credit card summary
| Card name | Santander Rewards Credit Card |
| Cost | None |
| APR | 24.9% APR representative |
| Benefits | 3% cashback for the first year on certain spend 0.25% cashback on other spend for two years Can add three additional cardholders Fee free No foreign transaction fees on overseas spend |
Our cashback credit card rules
A really important rule if you are using a cashback credit card.
Always pay off the balance in full every month
There’s no point using a cashback credit card if you’re going to get charged interest on your purchase. So make sure you set up a Direct Debit to clear the full balance.
If you can’t afford to do that, then a credit card probably isn’t your best option except for emergencies. I’ve written more about clearing credit card debts, so do read that.
It’s also worth doing an eligibility check before you apply if you can. This gives you a sense of whether you’ll be accepted, though not a guarantee.
Read more about these credit card rules.
