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Review: Nationwide credit card offers 2% cashback

Nationwide has quadrupled the rate of cashback on its Select credit card from 0.5 to 2 per cent. We take a closer look.



As well as 2 per cent cashback on all purchases in sterling, the Nationwide Select credit card offers competitive 0 per cent deals on both balance transfers and new spending.

0% on balance transfers for 26 months

Borrowers can transfer an existing balance to the card and not pay any interest for 26 months.

The handling fee – the cost of transferring a balance – is 2.4 per cent.

0% on purchases for 15 months

Nationwide is also offering cardholders an introductory 15 months interest-free on purchases.

This could prove useful when paying for a large item, such as a holiday, as you can spread the repayments without interest charges stacking up.

Unlimited commission-free purchases abroad

The credit card may also be a good choice for regular travellers.

When using it to spend abroad, cardholders aren’t hit with the usual commission fee – typically around 3 per cent - that many other credit cards impose outside the UK.

However, note that it’s still not wise to take out money from a cash machine abroad as Nationwide charges a 2.5 per cent fee on the amount you withdraw.

Nationwide Select credit card: Are there any drawbacks?

It’s not so much a drawback, but there are better deals out there for people wanting a credit card strictly for either balance transfers or purchases.

For example, the Barclaycard Platinum credit card offers 30 months interest-free on balance transfers, although this has a higher 2.89 per cent fee.

Meanwhile, the Santander Purchase credit card offers 18 months interest-free on purchases.

That said the Nationwide credit card is still very competitive in both areas.

Perhaps the biggest drawback of the card is that it is only available to people who also hold a Nationwide current account.

Those wanting to apply for the credit card can open an account as part of their application.

However, in order to qualify for the cashback deal, a minimum deposit of £750 must be made each month.

This means most people would likely need to use this as their main current account.

Our verdict: ‘A good card on three counts'

Nerys Lewis, head of credit cards at Confused.com, says: "The Nationwide Select credit card is a good option on three counts:

"Firstly, it has a very competitive balance transfer period, for a reasonable fee.
 
"Secondly, it has one of the longest 0 per cent purchases period on the market.

"And thirdly, it has a cashback offer that competes with the best of the specialist cashback credit cards.

‘A compelling option’

"However, the potential downside is that you have to take out a Nationwide current account, meaning there are a few more hoops to jump through than when taking out a normal credit card."

Lewis believes this is something that could become increasingly common within the credit card market.

"Providers know that once you’re tied in with them through a bank account you’re more likely to take out other products such as mortgages and ISAs," she says.

"However, the Nationwide Select is a compelling option so this shouldn’t necessarily put you off."

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Adam Jolley

Adam Jolley

Adam Jolley is a writer at Confused.com, focusing on credit cards and financial products. Wannabe mountaineer Adam joined us from the world of financial services PR.

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