What are CashBack sites and do they work?

You might have seen the adverts on TV talking about CashBack sites like TopCashBack and Quidco and how they can save you money - but do you know what they are or how they work, and even more, how to get the most out of them.

What is a CashBack site?

In the simplest terms, CashBack sites direct you to a normal retailers web site and, should you make a purchase, they get a small percentage of the purchase price for referring you. It costs you nothing, the goods or services you purchase and prices you pay are exactly the same as if you went to the retailer directly - it’s just you benefit from going there from the CashBack site.  

The amount you get varies. Sometimes it’s a few percent of the purchase price, other times it’s a fixed amount of a few pounds, and in some instances it can be tens of pounds when there’s a promotion on for certain retailers. Here’s a few examples from TopCashBack

• Curry’s 1% on all online purchases
• Halfords 2.5% on all online purchases 
• TUI holidays 1% on all online purchases
• AA car insurance £20 AA breakdown cover 50%
• 3 SIM only 12 month mobile contract £25

Note: These are just examples and you should check the CashBack site for up to date offers as these were just a snapshot at the time of publishing this page. 

So do CashBack sites work?

In short - yes - and the savings can add up if you think about how and when to use them. The highest cash back amounts are usually for annual renewals, think car or home insurance or mobile phone renewal. These can be between £10 and £50 for each and you might even reduce the cost by searching for a better deal.  

For example, you’ll likely have heard recommendations to never auto renew annual policies. This recommendation is usually based on being able to get a better deal if you take out a new deal with another retailer. If you do this every year you’ll usually get the best price. Well if you also use a CashBack site to do that renewal you also get CashBack.

Making the most CashBack

I'll say up front that I use TopCashBack  and I use it little like a Christmas or birthday fund, letting my cash back amounts build up throughout the year. Here's my tips to make the most out of TopCashBack:

1. I never auto renew. When I get a renewal notice, say for car insurance, I check to find the best deal using normal internet searches - and then I check to see what I'll get if I do the purchase by going through TopCashBack. Each year I make around £200 just in these
2. Whenever I have a big purchase (like an annual holiday, or a replacement for kitchen appliance), again I search to find the best deal and then I check to see what I'll get if I do the purchase by going through TopCashBack
3. For any annual items like Car servicing & MOT - guess what, I search to find the best deal and then I check to see what I'll get if I do the purchase by going through TopCashBack

You get the drift, 

Whenever you have to spend, search to find the best deal and check the cash back site to see what you'll get 

It's surprising how quickly it adds up. For my annual items alone I make around £200 every year.

Making the most of your CashBack when you want to spend it

Your CashBack is obviously best when you actually get to use it. There's two ways to do that - you can withdraw it straight into your bank account, or you can get it as gift cards or vouchers for your favourite retailer (even Amazon if you want). 

Both payout quickly (usually within 24 hours), however there is a bonus if you take it as gift cards or vouchers. Usually you will get a few percent more than the value you are withdrawing. 

For example, if you have £200 in your CashBack account and you withdraw it to your bank account you will get £200. However if you take it as Amazon vouchers you will get a 1% bonus - so £202. 

Even better, when it comes to spending your money, gift cards or vouchers, remember to check and see if you can get CashBack on your purchase. I used some of my cashback to buy a new cooker from Currys and I got CashBack on the purchase!!

One final note

If this blog has helped and you go on to use a CashBack site, please let me know by leaving a comment and sharing this page as I really like to know I've been able to help. 

Also, if you're considering using TopCashBack, please consider using my referral link by clicking the TopCashBack logo below.