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These lesser-known cashback sites could help you save on your shopping
Find out how Cheddar, Jam Doughnut and HyperJar compare on rates
Most savvy shoppers are familiar with cashback sites such as Quidco and TopCashback, but there's a good chance that the likes of Cheddar and Jam Doughnut might not be on your radar.
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: cashback sites explained
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: HyperJar is a free budgeting app that allows you to allocate money into virtual ‘jam jars’ for specific retailers.
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 cashback: Last year HyperJar introduced a gift card feature, allowing you to buy e-gift cards for just under 100 brands and earn instant cashback.
Each 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: HyperJar instant cashback explained
2. Jam Doughnut (app and online)
What it is: Jam Doughnut is a platform that offers instant cashback when you purchase e-gift cards.
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: Select the retailer you’d like to buy a gift card from and enter the amount. You’ll see in advance whether the gift card is usable online, in-store, or both.
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: best cashback credit cards 2024
3. Cheddar (app only)
What it is: Cheddar is a free financial app which tracks spending and helps users manage their budgets.
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 cashback: There are two ways to earn cashback via Cheddar:
- Automatic cashback to linked bank accounts. In the rewards tab, you’ll find ‘bank-linked’ cashback offers. Simply spend as usual on your linked cards, and cashback will be applied automatically. However, offers are limited; we found just 10 available, with rates ranging from 8% at Boohoo to 4% at JustEat.
- Cashback from gift cards. Cheddar also allows you to purchase gift cards from retailers in categories such as groceries, travel, fashion, and dining. Just select the retailer under the 'rewards' tab to buy the card.
Once you’ve accumulated £5 in cashback, you can withdraw it to your bank account.
- Find out more: best bank accounts for cashback
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.
| Retailer | Cheddar | HyperJar | Jam Doughnut |
|---|---|---|---|
| Asda | 2.75% | 3% | 3.3% |
| Argos | 4.5% | 5% | 4.9% |
| Boots | 3% | 3% | 3.4% |
| Caffe Nero | 9% | 8% | 9.7% |
| Costa Coffee | 8.5% | 8.5% | 8.8% |
| Curry's | 4.5% | 5% | 5% |
| John Lewis and Waitrose | 3.5% | 3.5% | 4.3% |
Cashback rates taken 26/09/2024 at 10.30am.
Things 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.
You should think carefully before making a big purchase. If you're buying something over £100, like a laptop, you’ll have more protection using a credit card, thanks to Section 75.
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: what are my rights with gift vouchers and cards
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.
We’ve also previously warned about costly cashback subscriptions that may charge a hefty monthly fee without you realising. These subscription offers can result in you paying more in fees than you would earn in cashback.
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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