Capital One cashback card offers 5% on purchases everywhere

Capital One has launched a new World MasterCard card offering 5% cashback on all purchases over the first three months up to £100 and up to 1.25% unlimited cashback thereafter.

As well as having one of the best cashback rates available and accepted almost everywhere1 as opposed to a restricted number of retailers Capital One’s new World MasterCard has no annual fee and offers free access to its Identity Alert service provided by Equifax. This provides customers with an early warning service against identity theft.

For purchases made after the first three months customers will receive the following tiered cashback rates:

0.5% on all purchases up to £5,999.99 each year 
1% on all purchases from £6,000 to £9,999.99 each year
1.25% on all purchases from £10,000 each year

The launch of the new card follows research from Capital One that shows one in three credit cards applied for over the next three to 12 months is likely to be a cashback card, making it the most popular product amongst consumers.  Furthermore, the average credit card cashback customer uses their card for 52% of their monthly spending.   

Reflecting the growing popularity of cashback cards, analysis of Moneyfacts data reveals that over the past two years the number of cashback cards has risen by 33%.

Brian Cole, Managing Director, Capital One said: “The Capital One World MasterCard offers tremendous money saving opportunities through highly competitive cashback rates on purchases everywhere.  Unlike some other cashback cards we offer our best rates on all purchases rather than those made at specific types of retailer.

“It’s no surprise that cashback credit cards have become increasingly popular as they offer potentially a better way of generating a return from spending than debit cards. We’re expecting this card to generate a high level of interest amongst consumers who will recognise this as one of the best cashback deals available on the market.”

The Capital One World MasterCard can be managed online and has a rate of 19.9% p.a. variable on purchases and balance transfers.