How to save money with cashback? What do you need to know about it?

How to save money with cashback? What do you need to know about it?

Do you want to spend less money, but still not deny yourself a normal life? Then you should arm yourself with cashback – the return of money from purchases. Now it has become very popular and useful for every credit card user.

How does cashback work?

In simple terms, this function allows you to return a certain part of the value of the goods you purchased. Usually, cashback returns to the wallet up to 20% of the paid product. The interest rate depends on:

1️⃣ The prtnership between the company and the bank. The company increases the number of products sold, and the financial organization attracts more customers to itself. The buyer remains in the black.

2️⃣ From the category of service or product you are buying. They are divided into: food products, cosmetics and health, transport, cafes and restaurants etc. Such groups and their rate are determined by the bank independently.

Sometimes, in order to use a function, you need to follow this process. Some stores delay the cashback process to make sure the customer does not return the item. This procedure can last from 14 to 60 days.

You should also remember when you withdraw cashback, you automatically pay income tax. It is 19.5%. It includes just the duty and the military fee.

Is it possible to return part of the money paid for utilities?

Some banks allow cashback from this category! Interest rate up to 5%. It may seem this is scanty money, but utility bills are paid all year round. Such a reduction in price will quickly become noticeable after a few months, especially in the cold season, when heating costs are too high.

Which apps can help you save money?

✅ Capital One Shopping – you can scan the QR code with it and find the same product, but cheaper. The program will apply coupons and discounts to further reduce the price.

✅ MyPoints is an app has about 2000 partner stores: eBay, Target, Amazon. Here you can get up to 40% cashback! Saved funds can be withdrawn via PayPal.

✅ Dosh – the program is similar to the previous one, but with more advanced features. It includes many hotels and restaurants located all over the world!

Cashback is an affordable way to save money. It may seem the income received is small, but in a year a significant amount will be collected. It will be pleasant to spend on new purchases and get cashback out of this again.