Cashback is the rare money-saving trick that costs nothing and asks nothing beyond a couple of extra clicks. Routed properly, it returns an average UK household £200–£500 a year on spending they'd be doing anyway. Most people either ignore it or use it badly. Here's how to use it well.

How it actually works

Cashback sites are paid an affiliate commission by retailers when you click through to them. The site keeps a slice and gives you the rest as cashback. You buy what you were going to buy; a percentage comes back weeks later. There's no catch beyond the delay and the discipline of remembering to click through.

The two platforms that matter

  • TopCashback — consistently the highest rates in the UK, and the free account already pays well. The Plus tier (~£5/year) lifts payouts and is worth it the moment you break even, which is usually week one.
  • Quidco — the main rival. Broadly similar, occasionally beats TopCashback on specific retailers. Worth having both accounts and checking each before a big purchase.

The honest verdict: TopCashback first, Quidco as the comparison check. Whichever shows the higher rate on the day wins.

Cashback credit cards — the always-on layer

Separate from the sites, a cashback credit card pays a small percentage on everything, automatically:

  • Typically 0.25–1% back on all spending, sometimes higher in an intro period.
  • Stacks on top of site cashback — the site pays for the click-through, the card pays for the payment.
  • Only worth it if you clear the balance in full every month. Interest at ~25% APR wipes out any cashback instantly. If you carry a balance, skip this entirely.

Where the real money is: big switches

Small purchases earn pennies. The large, infrequent ones earn the £200–£500:

  • Insurance renewals — car, home, pet. Cashback of £40–£100+ on a single policy. Always check the cashback site before renewing anything.
  • Broadband and mobile contracts — new sign-ups regularly pay £50–£120 cashback.
  • Holidays, flights, and hotels — bookings through the site return a percentage on hundreds of pounds.
  • Big electronics — TVs, laptops, appliances.

A single insurance switch can be worth more cashback than a year of grocery clicks.

The catch worth knowing

  • Payouts take 4–12 weeks — the retailer has to confirm the sale first. Don't treat it as instant money.
  • Some claims fail (ad-blockers, cookies, an interrupted click-through). For big purchases, disable ad-blockers and complete the purchase in one session after clicking through.
  • Don't buy things for the cashback. 5% back on something you didn't need is still 95% wasted.

The honest total

An average household that routes its insurance renewals, broadband switch, a holiday, and occasional big purchases through TopCashback, and pays everyday spending on a cleared cashback card, comfortably clears £250–£400 a year — for a few extra clicks and the patience to wait for payout.

It's the closest thing to free money in personal finance, as long as you never spend a pound chasing it.