A new credit card to be launched next week by Yorkshire Building Society (YBS) and the Co-operative Bank will actually give holders the chance to save money as they spend it.
The card's cashback feature credits the mortgages of all new borrowers, earning one per cent cashback for the first £2,000 spent every year, followed by 0.5 per cent on spending above £2,000 per annum.
Two versions of the cashback credit card will be offered. The first, the Bank of England (BoE) base rate tracker card, offers BoE base rate (currently 4.75 per cent) for six months, followed by the base rate plus 5.5 per cent for life.
Alternatively, the other version offers zero per cent interest for the first six months, rising to 15.4 per cent APR per annum typical/variable right.
Non-mortgage applicants can also take advantage of the cashback deals, receiving the credit either to their card account or by cheque annually.
"The launch of the Yorkshire Building Society credit card is a major step forward not just in providing cashback credits to a mortgage account but also in providing a card that combines an attractive tracker rate with a cashback," said Ian Bullock, general manager of sales and marketing at YBS. Click here to compare cashback credit cards.
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