By: Peter Stephens | Updated: 19th December, 2018.
Don't skip over the RBS Rewards Credit Card! Like the NatWest Rewards card, our rating is low on this card for good reasons. But also simliar to the NatWest card, the rewards yield for the RBS Rewards card is better than most rewards cards, and you're not as limited as store-brand cards. And again, that annual fee is reimbursed if you have a Rewards current account.Read full review >
|Purchase Rate||18.9% p.a. (variable)|
|Representative APR||23.7% (variable)|
|Assumed credit limit||£1,200|
The RBS Rewards Credit Card offers a relatively simple means of generating cash or vouchers when spending in a wide range of stores. It offers a relatively high rate for purchases in major supermarkets, as well as up to 15% for stores that are within its MyRewards network. There’s also no annual fee for RBS Rewards current account holders.
However, some competing cards have a simpler rewards scheme, and it’s possible to find higher rewards rates. This card also becomes incrementally less attractive for those that don’t hold a RBS Rewards current account, since they will have to pay an annual fee.
I have been writing for The Motley Fool since 2013, and have experienced the booms and busts of the UK economy for a number of decades both as an investor and a consumer. I have held various senior management positions during my career, while also setting up my own manufacturing company in 1996. It was subsequently sold in 2007. I have a keen interest in consumer finance, as well as in the stock market.
It is possible to obtain a higher level of rewards from other cashback and reward credit cards. American Express, for example, has rewards cards that offer 1% on all purchases. They also have no annual fee, which means that consumers are likely to be better off given that its rate applies to all spending, rather than it being dependent upon the store itself, as is the case with the RBS Reward card.
American Express, though, is not as widely accepted as Mastercard. Therefore, it may be the case that the difference in rewards received is not as wide as it appears at first glance. Other cards do, however, offer incentives to sign-up, such as bonus points or gift vouchers. In contrast, the RBS Reward Credit Card does not. Therefore, consumers may be able to get a better overall deal elsewhere – especially if they do not wish to have a Rewards current account from RBS.
The advertised APR is representative, which means it is offered to at least 51% of applicants. Consumers may therefore receive a higher rate than that which is advertised, which could make it even more important to pay off your balance in full each month. The card is available to all UK residents who have UK bank accounts and are aged 18+. They must also have an annual income of at least £10,000.
Applications can be made online. Details such as address history for the last three years, income figures, employer information and details of monthly outgoings will be required in order to complete the application. Existing current account details will also be needed. The process takes around ten minutes to complete, with a decision provided within five minutes of starting the application.
For an individual who spends a significant sum at supermarkets on a regular basis, as well as at the stores in the MyRewards network, the card could prove to be relatively appealing. It may be even more attractive for individuals who have a Reward Current account with RBS, since this will mean there is no annual fee for the credit card.
However, other cashback and reward cards offer initial rewards for becoming a cardholder, which the RBS Rewards card does not. Its 0.5% in rewards at retailers other than supermarkets and stores within its MyRewards network is also not among the highest rates in the industry, such as American Express. However, Mastercard is more widely accepted than American Express, so it may be possible to use the card more frequently than its rivals.
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