Capital One joins Amex at cashback card summit

The Amex has for years offered the top introductory cashback rate, but now the new Capital One World Mastercard joins it in offering consumers 5% cashback for three months (with a maximum £100 cashback during that time).

A £1,000 spend in the first three months on those cards would net you £50, or a £2,000 spend, £100. Cashback credit cards pay you tax-free cash every time you spend, though if you don't repay in full every month you face massive interest charges.

While the Amex offers the same introductory rate as Capital One, it pays slightly more favourable rates in some cases after. However, Amex cards are not accepted everywhere.

The nitty gritty

• Capital One World Mastercard. It gives new cardholders 5% introductory cashback for three months up to a maximum £100 in that time. Then it pays 0.5% up to £6,000 of spending a year, 1% for £6,000 to £10,000 and 1.25% on anything else. If you fail to fully repay it's a hefty 19.9% representative APR.

• Amex Platinum. It offers the same introductory deal, then 0.5% on spending up to £3,500 a year, 1% between £3,500 and £7,500, then 1.25% on all else. In addition, you get a £15 bonus if you apply via a special link by 18 July, available in the Cashback Credit Cards guides. If you fail to fully repay it's also 19.9% rep APR.

To get the Capital One World Mastercard you need to have a strong credit history, be a homeowner and earn at least £20,000. The Amex Platinum requires you to have a decent credit score, as well as a household income of at least £30,000.