Cheddar Cashback App Review 2025: Is It Still Worth Using?
- The Penny Pincher Team
- Feb 1
- 8 min read
Updated: Sep 12
Updated in February 2025 to reflect changes made to the Cheddar automatic cashback facility.
Most cashback apps require you to remember to click through links or activate offers before shopping. Cheddar promised to solve this problem by automatically detecting your purchases and rewarding you with cashback.
However, this changed dramatically on January 26, 2025, when Cheddar discontinued automatic cashback for new purchases and pivoted to become purely a gift card cashback app.
So is the Cheddar cashback app still worth downloading?
What You Need to Know About Cheddar Cashback
Automatic cashback discontinued - No longer available for new purchases as of January 26, 2025
Gift card cashback only - Now competes directly with JamDoughnut and Everup
£5 minimum withdrawal - Lower than JamDoughnut's £10 minimum
Works with 18+ UK banks - For purchasing gift cards via Open Banking
Realistic earnings: £50-150 annually for typical users who plan purchases
FCA regulated - Safe to use with proper financial oversight
Free to use - No subscription fees or hidden charges
Question mark over value - With automatic cashback gone, is it better than competitors?
What is the Cheddar Cashback app?
Cheddar is a free financial app which tracks spending and helps users manage their budgets. It uses open banking technology, so when you link your bank accounts and credit cards, Cheddar can categorise your monthly expenses.
It also provides a monthly spending tracker and other budgeting tools.
But beyond budgeting, Cheddar's main appeal is now gift card cashback.
Following the discontinuation of automatic cashback in January 2025, the app now focuses solely on instant cashback when you purchase gift cards from over 100 retailers.
There's also a peer-to-peer payment feature for splitting bills and requesting money.
What Happened to Automatic Cheddar Cashback?
As of January 26, 2025, Cheddar discontinued automatic cashback for new purchases. This was their primary differentiating feature, setting them apart from gift card-only competitors like JamDoughnut.
What Automatic Cashback Used to Be
Previously, Cheddar offered automatic cashback detection where you could:
Link your bank account via Open Banking
Earn cashback automatically when shopping at partner retailers
Get notifications when cashback was detected
However, this feature had limitations even when it existed - Which? magazine found only 10 automatic cashback offers available, with rates ranging from 8% at Boohoo to 4% at JustEat.
Why This Changes Everything
Without automatic cashback, Cheddar is now purely competing on gift card cashback rates and user experience against established cashback players like JamDoughnut and Everup.
The question becomes: are they better than the competition? The honest answer is no.
Which Banks Work for Gift Card Purchases?
You'll still need to connect your bank account to purchase gift cards through Cheddar's Open Banking system:
Supported banks:
Challenger banks: Monzo, Revolut, Starling, Chase
Traditional banks: Barclays, HSBC, Lloyds, NatWest, Santander, Halifax
Others: Nationwide, First Direct, AIB, Bank of Scotland, Danske Bank, Royal Bank of Scotland, Wise
American Express can be connected for spending insights, but cannot be used to purchase gift cards.
Gift Card Cashback: Cheddar's Only Cashback Method Now
With automatic cashback discontinued, gift cards are now Cheddar's sole cashback offering.
You buy gift cards through the app and receive instant cashback, similar to how JamDoughnut and Everup operate.
How Gift Card Cashback Works
Browse retailers in the app (look for the gift card icon)
Select your gift card amount
Pay securely through your banking app using Open Banking
Receive your gift card and cashback instantly
Use the gift card in-store or online like any other gift card
Current Retailers and Rates
The Cheddar cashback app works with retailers, including, but not limited to:
Tesco, ASDA, M&S, Morrisons, Iceland, Costa Coffee, Caffè Nero, Greggs, HelloFresh, Farmfoods, ASOS, JD Sports, Nike, TK Maxx, Primark, Foot Locker, B&M, Sports Direct, Adidas, The Body Shop, Boots, Currys, IKEA, Xbox, Trainline, Uber, National Express, Deliveroo, WHSmith, Waterstones, National Trust, Not On The Highstreet, Selfridges, H Samuel, Red Letter Days, Virgin, National Book Tokens, Lastminute.com, Redbubble, Naked Wines, Urban Massage, Bloom & Wild, Toms, Twitch, Daye, Avon, London Theatre Direct, Funky Pigeon, McColl's and more.
Note: Rates change frequently, and some retailers offer higher rates for first purchases. Always check current rates in the app before purchasing.
How Much Can You Actually Earn with Gift Card Cashback?
With automatic cashback gone, earnings are now entirely dependent on your willingness to plan purchases and buy gift cards in advance.
Example calculations:
£200/month at Tesco (2.5% back) = £60/year
£30/month coffee (7% back) = £25/year
Occasional fashion purchases = £15-30/year
Realistic annual total: £50-150 for typical users who remember to buy gift cards for planned shopping.
This requires changing your shopping behaviour; you need to think ahead and purchase gift cards before you shop, rather than earning money on purchases you've already made.
How Cheddar Compares to Gift Card Competitors
With automatic cashback gone, Cheddar now competes directly with dedicated gift card cashback apps.
Cheddar vs JamDoughnut
Cheddar advantages:
Lower withdrawal minimum (£5 vs £10)
Spending tracker features included
JamDoughnut advantages:
More established track record
Often, better cashback rates
Larger retailer selection
Cheddar vs Everup
Both offer similar gift card cashback functionality. Everup typically has competitive rates and a proven track record in the gift card cashback space.
The bottom line: Without automatic cashback, Cheddar's main advantages are the £5 minimum withdrawal and integrated spending insights. But these may not be enough to justify choosing it over more established competitors with better rates.
Beyond Cashback: Cheddar's Spending Features
One aspect that sets Cheddar apart from pure cashback apps is its budgeting functionality. When you connect your bank accounts, Cheddar automatically:
Categorises your spending - See where your money goes each month
Tracks missed opportunities - Shows cashback you could have earned if you'd bought gift cards
Provides spending insights - Similar to paid banking features, but free
The "missed savings" feature is particularly useful - it highlights when you've shopped at retailers where you could have earned cashback through gift cards.
Peer-to-Peer Payments: Cheddar also lets you request and send money via QR codes or payment links. Useful for splitting restaurant bills or receiving payments from friends, even if they don't have Cheddar.
What Users Can Realistically Earn Now
Based on the shift to gift card-only cashback, here's what you can expect:
Regular users: Those who plan ahead and buy gift cards for supermarket shopping, coffee, and regular purchases typically earn £50-150 annually. This requires behavioural change - remembering to buy gift cards before shopping.
Dedicated users: People who purchase gift cards for most of their planned spending can achieve £200-400 annually, but this requires significant organisation and forward planning.
The reality: Without automatic cashback catching spontaneous purchases, you'll only earn money when you remember to buy gift cards in advance. This makes Cheddar less convenient than it used to be.
Comparison point: You might earn similar or better amounts using JamDoughnut or Everup, which have been focused on gift card cashback from the start and often have more competitive rates.
Safety and Security
Cheddar uses Open Banking (like the other gift card cashback apps do as well), the same technology powering apps like Emma and Yolt. It's FCA-regulated and can only read your transaction history; it cannot make purchases or access sensitive information.
The app undergoes proper regulatory oversight and appears legitimate, based on user reviews and its FCA registration.
Is Cheddar Cashback Still Worth Using?
Maybe, if you:
Want the spending tracker features alongside gift card cashback
Prefer the £5 minimum withdrawal over JamDoughnut's £10
Already use Cheddar and are happy with the rates
Like the ability to send gift cards to others
Probably not if you:
Want the simplicity of automatic cashback (no longer available)
Can get better rates with JamDoughnut or Everup
Prefer apps with larger retailer selections
Don't want to change your shopping behaviour
Consider alternatives: JamDoughnut and Everup have been doing gift card cashback longer and often have more competitive rates.
My Honest Verdict
Cheddar's discontinuation of automatic cashback in January 2025 fundamentally changed its value proposition. What was once a convenient "set and forget" cashback app is now competing purely on gift card cashback rates.
However, it's still worth downloading. Cashback rates vary dramatically between providers, and sometimes Cheddar has the best deals or runs competitive promotions.
The smart approach is to have multiple cashback apps and compare rates before every purchase.
The spending insights and £5 minimum withdrawal are nice bonuses, but the real value now is having Cheddar as part of your comparison toolkit alongside JamDoughnut and Everup.
Rating: 3/5 - No longer innovative, but still valuable for rate comparison and occasionally competitive offers.
Recommendation: Download it, but don't expect to use it as your primary cashback app. Use it to compare rates and take advantage of their occasional good deals.
Frequently Asked Questions About Cheddar Cashback
How safe is it to connect my bank account to Cheddar?
Cheddar uses Open Banking technology, which is regulated by the FCA and used by hundreds of financial apps. It can only read your transaction history and cannot make purchases, move money, or access your login details. Multiple user reviews confirm no security issues.
How much can I realistically earn with Cheddar cashback?
With automatic cashback discontinued, earnings are now entirely dependent on gift card purchases. Expect £50-150 annually for typical users who plan purchases ahead and buy gift cards regularly. This is lower than previous estimates because you can only earn on planned purchases, not spontaneous spending.
What happened to automatic cashback?
Cheddar discontinued automatic cashback for new purchases on January 26, 2025. This was their main differentiating feature. The app now focuses purely on gift card cashback, competing directly with JamDoughnut and Everup.
Is Cheddar still better than JamDoughnut or Everup?
Not really, no. While Cheddar has a lower withdrawal minimum (£5 vs £10) and includes spending insights, JamDoughnut and Everup often have better cashback rates and more retailers. Sure, the spending insights are useful, but they aren't a reason for me to switch to using Cheddar over my favourite gift card cashback service, JamDoughnut.
How long does it take to receive cashback payments?
Gift card cashback is instant. Withdrawals to your bank account take 2-3 working days once you hit the £5 minimum.
Can I use Cheddar alongside other cashback apps?
Yes, you can stack Cheddar with other cashback methods. You can use gift cards purchased through Cheddar at retailers where you're earning cashback elsewhere through traditional cashback sites, in some cases. Doesn't always work, but it's worth trying.
Does Cheddar work with all UK banks?
It works with most major banks, including Monzo, Revolut, Barclays, HSBC, and others, for purchasing gift cards. Some smaller building societies and credit unions aren't supported. You can check compatibility in the app before signing up.
Are there any fees for using Cheddar?
No, Cheddar is completely free to use. There are no monthly fees, transaction charges, or withdrawal costs. They make money from retailer commissions, similar to other cashback services.
Can I send gift cards to other people?
Yes, like the other gift card cashback apps, Cheddar allows you to purchase gift cards and send them to others via email or messaging apps. You still earn the cashback even when sending gifts.
What's the minimum amount I need to withdraw?
You need £5 minimum to withdraw cashback to your bank account, which is lower than many competitors like JamDoughnut (£10 minimum). This means you can access your earnings more quickly.
Cheddar Referral Code - Free £5 Offer
As I've said, it's still worth downloading the Cheddar cashback app; having it to compare cashback rates against JamDoughnut and Everup to ensure you're getting the best deals for your shopping habits, so it could still save you some money! So download the Cheddar cashback app, and if you use the referral code PINCHER, you will get £5 when you buy your first gift card within 14 days, so even if you just use it once, to get your free fiver, it's worth the download!
