Cashback card vs 0% and savings

evets

I was wondering what the benefit of a cashback credit card is over having a 0% on purchases card and putting the balance (i.e. what would have been paid on a a normal card) in to a savings account each month. Surely this equates to "cashback" of >3% (looking at the current savings account article) rather than the 1% AMEX currently offer? Compound interest would also come in to play...

I ask because on the credit cards article it asks if you pay off your cards in full each month; if you answer yes a cash back card is presented as the best choice. Is there something I'm missing?

al4x

maybe for savings you have to have the money already, where as the CC is an interest free monthly loan?

td_007

You would pay off the balance in full if you do not have any 0% offer, in which case getting the cashback will be to your advantage.

If you have a 0% purchase offer then you need to make only the min payment each month of the offer period, then depending on the savings a/c interest rate and length of the 0% rate you could be better off compared to a cashback card provided you put the balance amount after the min payment into the savings a/c.

YorkshireBoy

Plug your spending details into these two calculators and see which works out best for you...

Cashback Calculator

Slow Stooz Calculator