Dr Mobeus
What Are Cashback Sites and How Do They Work?
Cashback sites are one of those things that sound too good to be true – but they actually work. The idea is simple: you click through to a retailer from a cashback site, make a purchase, and the cashback site gives you a percentage of what you spent back as real money.
How do they afford it? Retailers pay cashback sites a commission for sending them customers. The cashback site passes most of that commission on to you and keeps a small cut for themselves. Everyone wins: the retailer gets a sale, the cashback site earns a commission, and you get money back on something you were going to buy anyway.
We have been using cashback sites for the past year and earned just over £300 in actual cash. Not points, not vouchers – real money in our bank account. Here is an honest breakdown of which sites work, how much you can earn, and which ones are worth your time.
The Big Two: Quidco and TopCashback
These are the two giants of UK cashback. If you only sign up for two sites, make it these.
TopCashback
Our rating: 5/5
TopCashback is the UK’s most popular cashback site and for good reason. It consistently offers the highest cashback rates, has the widest range of retailers (over 5,000), and pays out reliably.
Key stats:
- Over 5,000 retailers
- Average cashback rate: 3-8% on most purchases
- Higher rates available through “Plus” membership (£2.99/year)
- Payout methods: Bank transfer, PayPal, gift cards (some with bonuses)
- Minimum payout: £1 for most methods
- Annual earnings for typical user: £150-300
What makes TopCashback special:
- Highest rates – They guarantee to match or beat any other cashback site’s rate. If you find a higher rate elsewhere, they will match it.
- Reliable payouts – We have never had a problem getting paid. Most transactions track within 24 hours and pay out within 2-3 months.
- No minimum payout for bank transfer – You can withdraw even £1, unlike some sites that make you wait until you hit £20 or more.
- Bonus offers – Regular “boost” offers where you can earn extra cashback on popular retailers.
The catch: Some transactions take a while to confirm (especially insurance and travel), and the occasional retailer does not track properly. Always screenshot your purchase confirmation.
Quidco
Our rating: 4.5/5
Quidco is TopCashback’s main rival and is almost as good. It has a slightly different approach with its Premium membership and some exclusive retailers.
Key stats:
- Over 4,500 retailers
- Average cashback rate: 2-7% on most purchases
- Premium membership: £1 of your first cashback per year for higher rates
- Payout methods: Bank transfer, PayPal, gift cards
- Minimum payout: £1 for Premium, £20 for standard
- Annual earnings for typical user: £100-250
What makes Quidco worth having:
- Some exclusive rates – Occasionally beats TopCashback on specific retailers, especially insurance and broadband.
- High street tracking – Link your debit card and earn cashback when you shop in physical stores. This is a game-changer for high street spending.
- Refer a friend – Both you and your friend earn a bonus when they sign up and earn cashback.
The catch: Slightly fewer retailers than TopCashback and some payouts can be slow. The £1 annual fee for Premium is deducted from your first cashback earnings, so it is essentially free if you earn anything.
Other Cashback Sites Worth Knowing About
Complete Savings
Our rating: 3/5
Complete Savings operates differently from the big two. It is a paid membership scheme (£19.99/month) that offers higher cashback rates and a monthly bonus. You can earn up to 10% cashback at participating retailers plus a £15 monthly bonus when you spend £50+ through the site.
Verdict: Only worth it if you shop online regularly (at least £200+ per month). The monthly fee eats into your savings if you do not use it enough. Cancel any time, but set a reminder to avoid paying for months you do not use it.
Kidstart
Our rating: 3.5/5
Kidstart is designed for parents but anyone can use it. Cashback goes into a savings account for your child (or a standard account for you). Rates are decent and it has some unique retailers.
Verdict: Worth having if you have kids – the automatic savings feature is handy. Not as comprehensive as TopCashback or Quidco but a good backup.
OhMyDosh
Our rating: 2.5/5
OhMyDosh focuses on free trials and sign-up offers rather than ongoing cashback. Good for one-off earnings but not something you would use for regular shopping.
Verdict: Useful for earning a quick £20-50 from sign-up offers, but do not rely on it for regular cashback.
Cashback Credit Cards: Another Layer of Savings
In addition to cashback sites, consider a cashback credit card. You get cashback on top of any site cashback, effectively double-dipping:
- Aqua Cashback Card – 3% on fuel, 0.5% on everything else. No annual fee. Accepts people with fair credit.
- American Express Platinum Cashback Everyday – 1% cashback (0.5% after £10,000). No annual fee. Requires good credit.
- Santander All in One Credit Card – 1.5% cashback on all spending. Monthly fee of £2.99 but worth it if you spend over £240/month.
Important: Only use a cashback credit card if you pay it off in full every month. The interest charges will wipe out any cashback you earn if you carry a balance.
How We Earned £300 This Year – Our Real Results
Here is exactly what we earned through cashback sites over the past 12 months:
- Car insurance renewal – £48 via TopCashback (Aviva)
- Home insurance – £32 via TopCashback (AXA)
- Christmas shopping – £28 via TopCashback (various retailers)
- Broadband switch – £65 via Quidco (Plusnet)
- Mobile phone contract – £42 via TopCashback (EE)
- Summer holiday booking – £45 via Quidco (Expedia)
- Everyday shopping – £40+ via both sites (Argos, Boots, Currys, etc.)
- New laptop – £22 via TopCashback (Currys PC World)
Total: £322
The key insight? The big money is in insurance, utilities and travel. Switching car insurance through a cashback site can earn you £40-80 in one go. Switching broadband or mobile provider earns similar amounts. These are things you have to do anyway, so you might as well get paid for doing them.
Tips for Maximising Your Cashback
1. Always check before you buy
Before buying anything online, check TopCashback and Quidco. It takes 10 seconds and you might earn 5-15% back. Install the browser extensions for both sites so they remind you automatically.
2. Never buy something just for the cashback
Cashback is a bonus, not a reason to spend. If you would not buy it without cashback, do not buy it with cashback either. You are still spending money you would otherwise keep.
3. Stack your savings
Use a cashback credit card through a cashback site on a discounted item, and you get three layers of savings: the discount, the site cashback, and the card cashback. We saved over £60 on a new laptop this way.
4. Time your big switches
Insurance, broadband and mobile contracts are the biggest earners. When your renewal comes around, always go through a cashback site. Check both TopCashback and Quidco as rates can differ.
5. Screenshot everything
Occasionally transactions do not track. Take a screenshot of the cashback rate before you click through, and keep your order confirmation email. If a transaction does not track, submit a missing cashback claim within 7 days.
6. Do not let cashback sit in your account
Withdraw your cashback as soon as you can. Cashback sites are not banks and there is always a small risk they could go under. Get your money into your real bank account.
Common Cashback Mistakes to Avoid
- Using ad blockers – They can prevent cashback tracking. Whitelist cashback sites or disable your ad blocker when clicking through.
- Using voucher codes from other sites – Some retailers will not pay cashback if you use a voucher code not listed on the cashback site. Always check the cashback site for vouchers first.
- Clicking through multiple sites – Only click through one cashback site per purchase. If you click through TopCashback and then Quidco before buying, neither may track.
- Forgetting about pending cashback – Check your account regularly. Some payouts need to be claimed and some expire if you do not withdraw them.
- Not checking both sites – TopCashback and Quidco often have different rates for the same retailer. Always compare before you click through.
The Bottom Line
Cashback sites are not going to make you rich, but they are genuinely free money on spending you are already doing. Our £322 over the year came from buying things we needed anyway – insurance, a laptop, everyday shopping. The only “effort” was clicking through a site before buying.
Our recommendation: Sign up for both TopCashback and Quidco (both free), install their browser extensions, and make a habit of checking before you buy anything online. That is it. The savings are automatic.
For more ways to earn money back on everyday spending, check out our guides to yellow sticker bargains and which UK loyalty schemes actually save you money.
