Banks use credit card giveaways to lure in customers

Credit cards are in the forefront of the battle for current account customers.  NatWest and HSBC are offering longer opening hours at bank branches to keep up with the competition from the new Metro Bank which is open at the weekends.  But Halifax is touting for new current account customers by offering cash rewards for those who apply for the new Halifax Clarity credit card.

If you open a Halifax Reward current account you are eligible for £60 a year in cash rewards if you fund your account with £1,000 each calendar month.  (However, you will also have to pay monthly charges of £12.50).  But Halifax is now pushing its Clarity credit card on which you can earn up to another £60 a year in cash backs.  The Clarity card has no fees on foreign purchases – useful if you are about to set off on holiday abroad - no cash fee, no balance transfer fee, no foreign exchange fee and no annual fee.

It also offers existing qualifying current account customers the chance to earn a £5 monthly cash back.  Customers must spend at least £300 on purchases (net of any refunds or reversals) in a statement period, stay within their credit limit and make their payments on time in order to qualify for the £5 cash back, which will be paid in the following statement period. The £5 reward for the Clarity credit card is treated as cash back for tax purposes and is therefore tax free.   Full details at .

But probably the best cash back card, because it has the simplest earning structure, comes from Capital One Bank’ World Mastercard which is paying a full 1% cash back on all purchases without limit.  Be careful of using the credit facility, however, as it is a hefty 19.9% on purchases and 25.9% on cash withdrawals.  Full details at .