Cashback apps are everywhere now, and honestly it’s hard to keep track of which ones are actually worth your time. I’ve already written about loads of the best cashback apps in the UK, but today we’re looking specifically at Cheddar – and there’s been some major changes you need to know about.

Important update: Cheddar stopped offering automatic cashback in January 2025. This completely changes how the app works, so if you’ve heard about it before, things are different now.

What Is Cheddar?

Cheddar started back in 2020 as a cashback and payment app from Cheddar Payments Limited. It was actually pretty clever at first – you’d link your bank card and automatically earn cashback whenever you shopped at partner retailers. No clicking through links, no activating offers. Just spend as normal and get money back.

But that’s changed now. Cheddar is now basically a gift card cashback app, similar to JamDoughnut or Everup. You buy gift cards through the app for retailers you’re planning to shop at, get instant cashback, then use those gift cards like normal debit cards.

They’ve also kept their person-to-person payment feature, which lets you send and request money from mates without needing bank details.

What Happened To Automatic Cashback?

Right, this is the big one. On 26th January 2025, Cheddar stopped offering automatic cashback for new purchases. This was literally their main selling point – the thing that made them different from all the other cashback apps.

Before January, you could:

• Link your bank card to the app
• Shop normally at partner retailers
• Automatically earn cashback without doing anything extra
• Get notifications when cashback was detected

I genuinely loved this feature because I’m terrible at remembering to click through cashback sites before shopping. It worked passively in the background, which was perfect for someone like me who’s usually in a rush.

But now? It’s gone. Cheddar is now purely competing on gift card cashback rates, which means they’re up against apps like JamDoughnut and Everup that have been doing this from the start.

To be honest, I was gutted when they scrapped automatic cashback. It’s what made Cheddar worth having.

How Cheddar Works Now

These days, Cheddar is all about gift cards. Here’s how it works:

1. Download the app – Available on iOS and Android, completely free
2. Link your bank account – Uses Open Banking (more on safety below)
3. Browse retailers – Look for the ones with gift card icons
4. Buy gift cards – Choose your amount and pay through your banking app
5. Get instant cashback – Added to your Cheddar balance immediately
6. Use the gift card – In-store or online, exactly like a debit card
7. Withdraw your cashback – Once you hit £5, transfer it to your bank account

The gift cards work at loads of places including Tesco, Sainsbury’s, Asda, Morrisons, M&S, Costa, Boots, Currys, and more. There’s over 100 retailers available.

Current Cashback Rates (December 2025)

The rates change all the time, but here’s a rough idea of what you can expect:

Supermarkets:

• Tesco: up to 5%
• Sainsbury’s: up to 4.25%
• Asda: up to 4%
• Morrisons: up to 4%
• M&S: up to 4.5%

Food & Drink:

• Costa Coffee: up to 10%
• Deliveroo: up to 5.5%
• Just Eat: up to 6%
• Greggs: varies

Fashion & Retail:

• Nike: up to 7.5%
• Boots: up to 5%
• JD Sports: varies
• Sports Direct: varies

Other:

• Currys: varies
• B&M: varies
• IKEA: varies

These rates genuinely do change constantly, and some retailers offer higher rates for your first purchase. Always check the app before buying.

Who Can Use Cheddar?

You need to be at least 13 years old and have a UK bank account. Most major banks are supported including:

• Monzo, Revolut, Starling, Chase
• Barclays, HSBC, Lloyds, NatWest, Santander, Halifax
• Nationwide, First Direct, Bank of Scotland, Royal Bank of Scotland

American Express works for tracking spending but you can’t use it to buy gift cards.

Is Cheddar Safe?

Yes, it’s safe. Cheddar is regulated by the Financial Conduct Authority, which means they’ve been properly reviewed and approved.

They use Open Banking technology, which is the same thing powering apps like Emma and Yolt. It’s FCA-regulated and can only read your transaction history – it cannot make purchases, move money, or see your login details.

Your bank details aren’t stored in the app at all. Everything goes through secure Open Banking connections.

That said, any cashback you’ve earned in the app isn’t covered by FSCS protection until you withdraw it to your bank account.

The Good Bits

Low withdrawal minimum – You only need £5 to cash out, which is lower than JamDoughnut’s £10. Means you can access your money quicker.

Instant cashback – Unlike traditional cashback sites where you wait weeks or months, gift card cashback appears immediately.

Free to use – No subscription fees, no hidden charges.

Spending insights – The app tracks your spending across accounts and shows you where your money goes. Quite useful actually.

Works with multiple banks – Can connect several accounts to get a full picture of your spending.

Peer-to-peer payments – Handy for splitting bills or requesting money from friends.

Easy to use – The app design is clean and straightforward.

The Not-So-Good Bits

No automatic cashback anymore – This is massive. The main reason I recommended Cheddar before was the automatic cashback. Now you have to plan ahead and buy gift cards before shopping.

Limited retailers – Whilst there’s 100+ retailers, it’s still not as many as some competitors.

Need to change shopping habits – You can’t just earn cashback on spontaneous purchases anymore. Have to remember to buy gift cards in advance.

Rates not always the best – JamDoughnut and Everup often have better cashback rates for the same retailers.

Gift card limitations – Some gift cards can only be used in-store, others only online. Some supermarket ones don’t work for fuel. Need to check the restrictions.

Cashback can expire – There’s conflicting information on this, but some users report cashback expiring after 6 months. Keep an eye on your balance.

How Much Can You Actually Earn?

Without automatic cashback, your earnings depend entirely on how organised you are. If you remember to buy gift cards for all your planned shopping:

• £200/month at Tesco (2.5%) = £60/year
• £30/month on coffee (7%) = £25/year
• Occasional other shopping = £15-30/year

Realistic total: £50-150 per year for someone who remembers to use it regularly.

Some super-organised people who buy gift cards for everything might earn £200-400 annually, but that requires serious commitment.

Compare this to when automatic cashback existed – you could earn similar amounts without thinking about it.

Cheddar vs The Competition

Cheddar vs JamDoughnut

Cheddar wins on:

• Lower withdrawal minimum (£5 vs £10)
• Spending tracker included

JamDoughnut wins on:

• Often better cashback rates
• More established
• Larger selection of retailers
• Been doing gift cards from the start

Cheddar vs Airtime Rewards

Completely different approaches. Airtime Rewards still does automatic cashback (reduces your phone bill), whilst Cheddar is now gift cards only. I’d personally use Airtime Rewards over current Cheddar.

Cheddar vs Traditional Cashback Sites

Sites like TopCashback and Quidco work for online shopping only. You can actually use both – buy a gift card through Cheddar, then use that gift card on a purchase through TopCashback. Sometimes the stacking works, sometimes it doesn’t. Worth trying though.

Other Features Worth Knowing

Spending tracker – Shows where your money goes each month across all connected accounts. Actually quite eye-opening when you see it laid out.

Missed savings – Tells you when you’ve shopped somewhere you could have earned cashback. Bit annoying but useful.

Reloadable cards – For retailers you use regularly, you can top up the same gift card rather than buying new ones each time.

Send gifts – Can buy gift cards and send them to others. Still get the cashback.

Payment requests – Create payment links to request money from anyone, even if they don’t have Cheddar.

My Honest Thoughts On Cheddar

I’m going to be straight with you – Cheddar isn’t what it used to be.

When I first tried Cheddar, I genuinely loved it. The automatic cashback was brilliant for someone like me who’s always in a rush and forgets to click through cashback sites. It just worked in the background, and I’d get nice surprises when cashback appeared.

But now? It’s just another gift card cashback app, and there are better options out there. JamDoughnut typically has better rates, and they’ve been focused on gift cards from the start so their system is more refined.

That said, I’d still download it. Here’s why: cashback rates vary massively between apps, and sometimes Cheddar has the best deal. The smart approach is having multiple cashback apps and comparing rates before every purchase.

The £5 withdrawal minimum is genuinely useful – means you can cash out quicker than with JamDoughnut. And if you like having spending insights in one place, that’s a bonus.

But would I use it as my main cashback app? No. It’s now part of my comparison toolkit rather than my go-to app.

Rating: 3/5 – Still useful for comparing rates, but no longer the innovative app it once was.

Is Cheddar Worth It In 2025?

Download it if you:

• Want another app to compare cashback rates
• Like the £5 withdrawal minimum
• Already use it and are happy with the rates
• Want spending insights included

Skip it if you:

• Want automatic cashback (gone now)
• Can get better rates elsewhere
• Don’t want to plan purchases in advance
• Prefer apps with bigger retailer selections

Common Questions

Is Cheddar still free? Yes, completely free. No subscription, no fees to cash out.

How long until I can withdraw my money? Cashback is instant. Withdrawals to your bank take 2-3 working days once you hit £5.

Can I use Cheddar with other cashback apps? Yes! You can sometimes stack gift cards from Cheddar with cashback from traditional sites. Doesn’t always work but worth trying.

What if I need to return something I bought with a gift card? This is tricky. Returns go back to the gift card, not your bank account. If Cheddar doesn’t refund the cashback, you might be stuck. Always check their refund policy first.

Do gift cards expire? Depends on the retailer. Check the expiry date before buying. Most last at least 12 months.

Can I send gift cards to friends? Yes, and you still get the cashback even when sending gifts.

Alternatives To Consider

Airtime Rewards – Still does automatic cashback. Links to your card and reduces your phone bill. Much closer to what Cheddar used to be.

JamDoughnut – Pure gift card cashback, often better rates than Cheddar.

Everup – Another gift card cashback app with competitive rates.

TopCashback – Traditional online cashback site, huge range of retailers.

Read my full guide: 13 Best Cashback Apps In The UK

Should You Download Cheddar?

Here’s my take: download it, but don’t expect it to be your main cashback app.

Cheddar used to be brilliant. The automatic cashback was genuinely innovative and saved me money without any effort. But since they scrapped that feature in January 2025, it’s become just another gift card cashback app – and not even the best one.

The spending insights are useful, and the £5 withdrawal minimum is handy. Sometimes they have competitive rates on certain retailers. But JamDoughnut and Everup often beat them on rates.

My advice? Have multiple cashback apps and compare rates before making purchases. Cheddar should be one of those apps, but it probably won’t be your favourite.

If you do want to try it, there are referral codes floating about that give you bonuses on your first purchase. Worth googling “Cheddar referral code” before signing up.

The bottom line: Cheddar is fine, but it’s no longer special. It’s worth having for comparison purposes, but the magic disappeared when automatic cashback did.

Use my referral code for a £2.50 bonus: ODTVWBJ