Halifax launches new cash-back credit card

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Halifax launches new cash-back credit card

Wed 15th Dec 2004

Halifax's new debit card, offering consumers one per cent of the value of everything they buy back in cash, has drawn praise from moneysupermarket.com.

The Moneyback current account, which will launch in February, can give consumers more than £100 back tax-free once a year.

"This groundbreaking current account is a positive development for consumers. The cash-back element is a genuine innovation as far as the UK market is concerned, offering customers more choice and will most certainly put pressure on the big banks," said Stuart Glendinning, director of current accounts at price comparison website moneysupermarket.com.

"This product isn't for everyone as consumers who normally go overdrawn may want to look at other propositions such as Alliance & Leicester offering a 0 per cent overdraft for the first year and 6.9 per cent thereafter. But for individuals who can pay in £1,000 a month, who are frequently in credit and conduct many transactions with their debit card, this account could be a winner.

Cash-back deals have been available on credit cards for some time, with Nationwide offering an unlimited one per cent cash-back deal for the first nine months of the card.

But Halifax is the first to offer cash-back on a current account.

Halifax's household expenditure survey found the average UK household spends more than £16,000 a year on things like food, clothing and holidays. These items, if bought with the Moneyback current account debit card, would all qualify for the one per cent cash-back deal.

The account is available to anyone who pays in more than £1,000 a month, after the first £10,000 spent through the account all subsequent transactions are paid cash-back at 0.1 per cent.

However, cash withdrawal, bill payments and foreign money/travellers cheque orders will not qualify for money back.

"Moneyback is a genuine first in the UK banking market. The Moneyback account is a simple, value for money product that we know will appeal to the many UK consumers fed up with the poor deal they get from the Big Four banks," said Andy Hornby, chief executive HBOS Retail.

"Value for money is here to stay and the Big Four will just have to get used to that uncomfortable reality. We aim to make life even harder for them next year when we back the launch of Moneyback with a new high profile advertising campaign."

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