Up to 10% Cashback – The Craziest Cards You've Never Heard Of

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Banking Without Borders 32 min 2 speakers 6 chapters transcribed 1 month ago
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What is the episode’s overall premise and why aren’t any of the cards recommended?

Jonny Pease 0:00
Okay, welcome back to another episode of Banking Without Borders. So what about 10% cashback or 8% or 9% or what about 555% APR? These are real numbers on real cards and accounts that real companies mostly are advertising. And by the end of this video, you're gonna understand why we'd recommend approximately none of them. And I'm gonna be clear upfront, this is not a recommendation video. This is us pulling five of the strangest cards or accounts on the market to see what's actually going on underneath the hood. We've lined up five in order, the least mad to the most mad. And just to warn you upfront, every single one of these has planned tiers, right? And they've got tiers on top of tiers. One of them has three plans with three levels per plan.
Jonny Pease 0:50
I'll do the maths. That's nine combinations. So if this episode gets a bit weird or a bit tangled, please don't blame us. That's entirely their fault. So Jan, should we just begin the episode with some crack?
Jan Watermann 1:03
Yeah, Johnny, the crack card, which is arguably the most boring, but also the most legitimate card on this ranking. The headline rate is up to 2% of cashback, which you can get. And it varies depending on how much money you deposit with them. Under 1,000 pounds, you're getting half a percent. Above 1,000 pounds, you're getting 1%. Above 10,000 pounds, you're getting 1.5%. And above 50,000 pounds, you're getting 2%. That cashback is uncapped, so you'd be earning these 2% on whatever you spent with that card. Sounds not too bad, right?
Jonny Pease 1:35
Okay, so... Yeah, yeah. So the basics here are deposit 50k, get 2% cash back on everyday spending.
Jan Watermann 1:43
That's right, Johnny. And you might be thinking, why? Why would you do that? Why would you deposit 50k into this account? You've opened up an account with them already. You've shown it to me in the app. Basically... They want to funnel you into their crypto platform. They want to encourage you to trade on their platform. There definitely, I mean, there would be a moment, right? You have that money deposited. There would be a moment where you think, oh, how do I get interest on that, right? How do I get a return on investment? And obviously... You know, the closest feature you can access that's close to interest is investing that into some kind of stable coin, potentially into some other crypto coin, you know, various options.
Jan Watermann 2:30
But that's the whole incentive. And that's the only way this works even, right? Because why would they do that though?
Jonny Pease 2:36
Yeah, it does sound like that. It's essentially just a marketing play, isn't it? They've decided that they're going to offset the cost of providing you with cash back as a marketing trust. That's fine. That's normal. The card itself, I mean, there are some nice little benefits to this account. The cash back, I think, is expensive. And by that, I mean it's... Quite a big ask to deposit 50K for 2%. I mean, let's just compare that for a moment to Chase UK and their 2% cash back. You're depositing your money in an FSCS protected account, first of all, with Chase UK. And this crack account is... It's an e-money institution through something called PSL. So there is some protection. And we should go as far as saying this is the only account, the ones we're going to talk about today, that has a level of protection to it.
Jonny Pease 3:28
But with crack, your money, if you deposit, if you decide to go with this, your money is deposited with Paywood Service Limited, who are authorized by the FCA. And they are an EMI, which means any money you deposited into crack would be ring-fenced. So it would technically be secure. But I wanted to talk about comparatively to Chase UK for a moment. I mean, Chase UK are also offering 2%. And in return, they're not asking for £50,000. They're asking for you to deposit how much money per month. Let's just double check that to qualify. You have to maintain a balance, Jan, of just £1,000 across your Chase Saver accounts to qualify for 2%. That's not on every day spending. That's not on every possible merchant code available.
Jonny Pease 4:08
But it's not £50,000 in a somewhat unprotected or... It's not unprotected, but in arguably a less protected account.

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