uSwitch.com: American Express 5% cashback offer

Mike Naylor, personal finance expert at uSwitch.com, the independent online price comparison and switching service, comments on the changes to the American Express Platinum Credit Card, with the launch of its 5% cashback offer: “American Express has decided to deliver an early Christmas present to new customers by announcing changes to its MoneyBack offer on its Platinum Credit Card. New applicants will benefit from MoneyBack at 5% for the first three months of spending. This is a market leading offer that could see customers earn up to £200 cashback over the festive period.

“This is perfectly timed to benefit customers who plan to use their credit card for Christmas shopping or to hit the January sales. However, as with all cashback offers, customers will only maximise the benefit if they pay off their balance in full at the end of every month. If not, customers will have to pay 18.9% APR (typical variable) on the outstanding balance which is 2.38% higher than the average industry APR of 16.52%.

If customers know they can’t pay back their balance in full at the end of every month, they should consider the Halifax Purchase MasterCard for their festive spending. This currently offers 0% for 15 months on new purchases so the Christmas spending can be spread across the year without incurring any interest.

“Following the introductory period, the cashback offer on the American Express Platinum card reverts to a maximum of 1.5%, still one of the most competitive deals on the market, and all cashback is paid annually on the anniversary date. Overall, this is a good offer that could enable customers to buy those extra stocking fillers at Christmas time – whilst earning cashback along the way.”

MoneyBack on the American Express Platinum Card will be calculated at the following rate:

5% for aggregate annual spends amount up to £4,000 for the first three months. Then:

0.5% for aggregate annual spend amounts up to £3,500

1% for aggregate annual spend amounts from £3,501 to £10,000

1.5% for aggregate annual spend amounts in excess of £10,000