How to calculate Capital One Aspire Cashback rate?

liuyangor

Interested in Capital One Aspire credit card, It stated:


*5% cashback is earned on all purchases for 99 days from account opening up to a maximum total cashback of £100. After this period you will earn 0.5% cashback for all subsequent purchases up to an aggregate of £5,999.99, increasing to 1% for aggregate purchases from £6,000 - £9,999.99, increasing to 1.25% on all purchases from £10,000. There is no limit to the cashback you can earn after the first 99 days of account opening. These rates are applicable until you reach the anniversary of your account opening. From each anniversary you will begin earning cashback at 0.5% and your cashback rate will increase as your aggregate purchases pass the threshold (see above). Cashback is paid every January as a credit to your account.

Let's consider the situation in 2nd Year:

Method 1:

If spending £12000 in the SECOND year, should the cashback be calculated as following:

12000 x 1.25%=150 pounds

or

Method 2:

6000x0.5% (first 6000 pounds at 0.5%)+4000 x 1%(6000-10000 pounds at 1%) + 2000 x 1.25% (from 10000, the cashback is at 1.25%) = 95 pounds

Which method is the correct calculation for SECOND year cashback please?

leicsmarkyr

The second option. Regardless of whether you spend £15K or £30K, you would only get 1.5% of spend from 12K to X.

So assume you spend £13K in the year; it would be:

0.5% for spend up to 5,999.99
1% for spend between 6,000.00 and 9,999.99
1.25% for spend between 10,000 and 13,000

£30.00
£40.00
£37.50

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£107.50 cashback [assuming round up is correct]

liuyangor

Many thanks for your advice.