As the coronavirus lockdown continues and the UK’s finances continue to be affected, Martin Lewis OBE has been giving more advice than ever on how people should save and spend their money. On Thursday night’s Martin Lewis Money Show, the presenter revealed a new deal that would give customers five per cent cashback on everything they spend for a whole six months. The offer is an extension of an existing deal with an everyday credit card.
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Sharing the news on the show, Martin revealed the money-saving deal was with American Express.
The bank has now doubled the time that new customers can earn rewards simply by spending on one of its top-paying cards.
The fee-free Amex Platinum Everyday Card was previously paying five per cent cashback on all spending for three months, but the introductory offer has now been extended to six months.
The new deal means customers can get paid to spend – so long as they’re smart about how they do it.
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The extension comes as lockdown affects people’s bank balances and spending is slowing down.
American Express has doubled the amount of time that newbies can earn their rewards in reaction to the drop in overall spending – though caps to the cashback still apply.
The offer means all customers who are new to the card get 5 percent cashback on the first £2,000 of spending in the first six months, meaning you could earn back up to £100.
It’s good news even for customers who are already in their introductory three month period, as they’ll get the boost too.
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Once the £2,000 cap is hit, or when the six months are over, the cashback rate then drops to 0.5 percent on up to the next £5,000 spent per year – though it rises to 1 percent on spending over £5,000.
However, all applicants must spend over £3,000 a year on the card to get any cashback at all.
The cashback is then paid annually into your account.
Unfortunately the offer is only open to those who are new to Amex’s reward cards; if you’ve had a card in the last two years, you won’t be eligible to apply.
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Sticking to his signature catchphrase, Martin reminded customers that they must remember to pay off credit cards in full in order to make sure they’re not caught out by high interest rates.
Banks often offer these cards in the hope people will become big spenders and rack up costly interest.
However, by making sure any spending is paid off in full each month, shoppers can avoid any unwanted bills.
The money expert also warned that isn’t an excuse to overspend – simply a way to earn back money on what you would be buying anyway.
Those who fail to repay will be looking at 22.2 percent representative APR, so interest could quickly mount up.
In his newsletter this week, Martin reminded his followers of the golden credit card reward rules:
a) Do all normal spending on the card to maximise the gain – but it’s not an excuse to overspend.
b) Always repay IN FULL each month, preferably by direct debit, to avoid interest that will dwarf the gain.
c) Never withdraw cash. You pay interest on it even if repaying in full, and it hits your credit score.
d) Never go over your credit limit, or you can be fined.
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