Though they may sound like food that would be more at home in your kitchen, these lesser-known sites could help you earn some extra dough.
Here, we round-up three cashback sites you may not have heard of, explain how they compare with the bigger players, and reveal what you should watch out for when using cashback platforms.
How do cashback sites and apps work?
Cashback websites reward you when you make purchases from their partner retailers. Two of the most well-known cashback sites in the UK are TopCashback and Quidco.
To claim cashback, you'll find a deal on the cashback site, click the link to visit the retailer, and complete your purchase. The retailer then pays a commission to the cashback site, which sends a portion of that money to your bank or PayPal account.
Recently, a new way to earn cashback has gained popularity: purchasing retailer gift cards through cashback apps or websites. Cashback platforms often have more than 100 retailers available, each offering a unique cashback rate (usually between 1% and 20%) when you purchase a gift card.
For example, a cashback app might offer 5% back at Marks & Spencer. Therefore, if you buy a £50 gift card, you'll have the £50 to spend and pocket an additional £2.50 in cashback.
Find out more:3 cashback platforms you might not know about
If you’re interested in making some extra money on your everyday spending, it might be worth checking out these lesser-known platforms:
1. HyperJar (app only)
What it is:In addition to budgeting, HyperJar offers shared spending features, and you can set up accounts for kids to help them manage their pocket money.
How to earn cashbackEach retailer has its own cashback rate, ranging from 1% to 25%. The cashback is paid directly into your HyperJar account as soon as you purchase the gift card, and you can use it immediately.
Your e-gift cards are stored within the HyperJar app and can be used in-store or online, depending on the retailer, just like any regular e-gift card.
Find out more
2. Jam Doughnut (app and online)
What it is:Jam Doughnut offers cashback on more than 150 retailers across entertainment, shopping, groceries and travel. The cashback rate varies, but when we checked it ranged from 1.8% to 18%.
The platform also runs competitions every weekday at 1pm where you can win cash prizes and vouchers through the app.
How to earn cashback:Each retailer offers a different cashback rate, and Jam Doughnut occasionally boosts these rates for a limited time through its ‘pump up’ feature.
Once you’ve purchased a gift card, you’ll earn cashback points, calculated as a percentage of your total spend. These points can be redeemed for gift cards or transferred to your bank account once you’ve accumulated 1,000 points, equivalent to £10.
Cashback points expire after 12 months, so it’s best not to let them sit unused.
Find out more
3. Cheddar (app only)
What it is:It uses open banking technology, so when you link your bank accounts and credit cards, Cheddar can categorise your monthly expenses. It also provides a monthly spending tracker and other budgeting tools.
The app offers personalised cashback deals from over 100 retailers.
How to earn cashbackAutomatic cashback to linked bank accounts.Cashback from gift cards.Once you’ve accumulated £5 in cashback, you can withdraw it to your bank account.
Find out more
How much can you earn?
We’ve taken 10 popular retailers and compared the standard cashback rates across Cheddar, HyperJar, and Jam Doughnut to give you a broad idea of what you could make when buying a gift card.
It’s worth noting that cashback rates change all of the time, and some rates will be personalised to you, so you may get higher or lower percentages.
undefinedThings to watch out for when using cashback apps
If you want to start earning cashback on a new site, it’s worth watching out for the following:
1. Gift card pitfalls
Buying a gift card instead of paying directly with a debit or credit card comes with certain risks. Gift cards often have expiration dates, and if the retailer goes into administration before fulfilling your order, you may struggle to recover your money.
To shop safely, avoid loading large sums onto a gift card, and only buy it when you’re ready to use it, such as before your weekly shop.
Find out more:2. Costly cashback schemes
The sites we’ve mentioned are free to use, but some lesser-known platforms might charge fees or require you to earn a significant amount of cashback before allowing transfers to your bank account.
It’s best to avoid these, especially when there are plenty of free alternatives available.
If you’re unsure about a cashback app, check for reviews on independent sites like TrustPilot, and thoroughly review the provider's website before signing up.
3. Higher prices
The promise of cashback can sometimes distract you from better deals elsewhere. For example, a £20 book with a 5% cashback rate (£1) isn’t a great deal if you can buy the same book for £15 at another retailer.
In most cases, cashback can’t be combined with discount codes, so if you have one, it’s worth checking whether the discount provides a bigger saving than the cashback would.
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