Amex ups credit card cashback to 5%

Cashback credit cards pay a percentage of the amount spent on them back to the cardholder as a reward - so 5% means it pays £5 per £100 spent.

However, you must always repay in full every month, or you'll face massive interest charges.

For years the Amex Platinum card offered the top introductory cashback rate of 5%, but in August last year it cut this to 2.5% and introduced a £25 annual fee. It’s now reinstated the tabletopping rate, though the fee still remains.

Both Amex and Capital One pay 5% cashback on up to £2,000 worth of spending in the first three months (so £100 cashback). While the intro rates are the same, the Amex pays a flat rate of 1.25% after, while the Capital One card is tiered up to 1.25%.

The details

• Capital One World Mastercard. It gives new cardholders 5% introductory cashback for three months up to a maximum £100 in that time. Then from month four it pays 0.5% on the next £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.

  To get the Capital One World Mastercard you need to have a strong credit history, be a homeowner and earn at least £20,000.

• Amex Platinum. It offers the same 5% introductory rate, then as soon as you've earned £100 of cashback you jump to a flat rate of 1.25% on all spending. However, it charges a £25 annual fee. If you fail to fully repay it's 14% representative APR.

  The Amex Platinum requires you to have a decent credit score, while it has just reduced the household income requirements from £30,000 to £20,000.