Spotlight: American Express Platinum Cashback card

American Express (AMEX) has reduced the amount its Platinum Cashback card pays – it has been the market-leader for some time, so how does it fare now?

If you clear your credit card balance each month, a card that rewards you for spending is well worth considering. The American Express Platinum Cashback card pays 5 per cent in the first three months up to a maximum spend – this means you could earn £100 just for using your card.

The rate of cashback then drops: 0.5 per cent is paid on the next £3,500, 1 per cent on spending between £3,500 and £7,500, and 1.25 per cent above £7,000. It is this higher rate of cashback that has been cut – the card used to pay a top rate of 1.5 per cent, although it didn't kick in until you had spent more than £10,000. Despite this, the card remains the market-leader.

The Egg Money World-card is also worth a look. It pays a flat rate of 1 per cent cashback, but the maximum you can earn is capped at £200 a year. There is also a £1 monthly fee.