Consumers could be missing out on earning hundreds of pounds by not using a cashback credit card and a high interest paying current account in tandem.

moneysupermarket.com has calculated that funding every day expenditure with a cashback credit card and then paying it off in full each month could earn hundreds, and they could deposit their salary in an interest-paying account to make it even more rewarding.

Consumers who shop on a cashback credit card and pay their salary into a competitive current account could earn as much as £549 a year, from the cash bonus they get from spending on their cashback credit card, and in interest from a high paying current account.

Someone spending £2,500 a month on an American Express Platinum credit card could earn £424 a year in cashback, combined with a potential £125 a year in interest from putting the same amount per month into a Santander current account, which is currently paying five per cent on in-credit balances.

Providing the credit card balance is paid in full each month and no payments are missed, this is a “double header” of interest and cashback, says moneysupermarket.

Kevin Mountford, head of banking at moneysupermarket.com, said that “There are so many ways to earn more from your savings; consumers just need to be clever with their finances, and take advantage of free cash.”

Using a cashback credit card and saving monthly wages is a “simple and effective way of earning extra cash,” he said.

“Whilst the decision to borrow should never be taken lightly, when used responsibly, a cashback credit card can be a great way to make your money work harder.”

But, he warns that the cashback credit card system does not necessarily work well for all consumers, as failing to repay the balance each month will result in the balance accruing interest, negating any financial gain from potential cashback earned.

© Fair Investment Company Ltd