Cheddar cashback rates and review

Yes, Cheddar is a legitimate UK company that uses Open Banking to connect to your bank account. Open Banking is regulated by the FCA and only allows read access to your transactions - Cheddar can see your balance to process payments but cannot move money without your explicit approval.

The gift cards themselves are genuine and work exactly like buying them directly from the retailer. Cheddar partners with the retailers and earns a commission on sales, passing some of that back to you as cashback.

Cheddar works best for organised shoppers who plan their spending. If you do a weekly supermarket shop at Tesco or Sainsbury's, buying gift cards in advance means free cashback on money you'd spend anyway.

It's less suited to spontaneous shoppers or those who prefer flexibility over savings. You need to remember to buy the gift card before you shop, and you're committing that money to a specific retailer. But for regular expenses like groceries, takeaways, or planned purchases, the instant cashback adds up quickly - around £200 per year for an average household.

Cheddar is a genuinely useful app if you're willing to add one extra step to your shopping routine. The concept is simple: buy gift cards for shops you already use, get instant cashback. No complicated tracking, no waiting months for payouts.

The savings are modest but real - expect around 2-5% on supermarket spending and higher on dining and entertainment. For an average household, that's roughly £200 per year in free money. The app has strong ratings (4.8 on both stores) and the process is straightforward. If you shop at the same places regularly and can remember to buy gift cards first, Cheddar is an easy win.