Using cashback websites for your online purchases could potentially earn you several hundred pounds for a little extra hassle. If your new year’s resolution is to boost your savings or sort your finances, using cashback sites could be one way of increasing your pay.

WHAT ARE CASHBACK WEBSITES?

Cashback websites pay you when you click through them, go to retailers or product providers and spend. Quidco, one of the most popular cashback sites, says its members earn £280 on average per year.

If you want to buy something online, you can use the link via these websites and you’ll earn some money back on that purchase.

The amounts vary depending on what you’re buying and how much it’s worth, but for example you will typically get up to 6% off some department stores and up to around £50 for home insurance. The cashback also applies to some contracts such as for mobile phones.

WHAT THINGS SHOULD I LOOK OUT FOR?

Cashback websites are generally free although some offer a premium service such as faster payments in exchange for keeping some of your money each year. In general it is best to go for basic level accounts.

There can be problems with getting the cashback money; for example, some smaller cashback websites have folded, taking customer money with them, so you should never rely on or make a purchase based on the cashback – instead see it as a bonus.

You should also make sure you shop around first to get the best deal on an item, and then see if you could get cashback with that retailer via a cashback site.

And always withdraw any money you get straight away, as some of the sites are small and can go bust. Although most will require you to reach a certain level of earnings in your account before you can redeem any money.

WHAT ARE SOME OF THE SITES I COULD USE?

The biggest sites are TopCashback and Quidco, and because they are larger they can usually negotiate the better deals.

TopCashback and OhMyDosh! are the top rated on TrustPilot, a consumer reviews website. Both TopCashback and Quidco allow you to sign up for free but also offer premium membership.

TopCashback says it has 8.2m members, and they can pick between free membership or Plus membership, which costs £5 a year (taken out of your cashback earnings). Plus membership can give you higher cashback rates and bigger bonuses.

For QuidCo the premium membership also costs £5 a year, and gives you bonus cashback promotions and entry into prize draws and giveaways.

It’s worth shopping around between different sites, as they won’t all offer the same cashback rates. For example, TopCashback is currently paying up to 10% on certain Marks & Spencer purchases, while QuidCo is paying up to 8%.

It’s worth noting that TopCashback and QuidCo are in takeover talks at the moment, which has raised concerns that the cashback amounts they offer could fall.

CAN I GET MONEY FOR NOTHING?

In a weird quirk of the websites sometimes you can make money even if you don’t buy anything.

You just need to complete some tasks such as filling in application forms, carrying out free trials or answering questionnaires.

For example, on TopCashback you can earn £1.89 for registering and completing one survey with MySurvey UK, while OhMyDosh! pays £2 if you sign up to a free trial of digital TV service NowTV.

You can also make money by referring people, and they don’t even need to be friends. For example, QuidCo gives you £5 cashback for each person you refer, although you only get the cash once they have earned their first £5 of cashback. You can use Facebook and Twitter to share your referral link and get even more money.

WHAT ABOUT SAVING FOR MY CHILDREN?

KidStart has a different slant on cashback. It works the same as other cashback websites but you register your child’s savings account with it and each month it funnels the cashback into that account.

It has around 1,500 retailers from whom you can get cashback, including Amazon, which is often not featured on other cashback sites.

The website could be a clever move to add to your children’s savings pot for doing very little. You can also use it to save for nieces, nephews, grandchildren or friends’ children too, if you don’t have any of your own. The money can also be donated to a school or children’s charities.

KidStart can be linked to any bank or building society account that accepts electronic payments, plus child trust funds and many Junior ISAs.

Step-by-step guide to using cash back sites:

– Research the item you want to buy and use comparison websites to ensure you’re getting the cheapest deal.

– Once you’ve decided on a retailer, check which cashback website has the biggest reward at the moment.

– Log in to your account on that cashback website, and make sure you follow the link they provide to get to your retailer of choice, and then make your purchase as normal.

– Once the cashback has been confirmed it will appear in your cashback account it might take a while for the cashback to show, often weeks or months.

– You can then get the money paid into your bank or PayPal account, or some cashback sites allow you to get it as an e-voucher for certain retailers.

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