Cashback is simple: you spend, you get pounds back. Avios are worth more on paper, but only if you use them well. The right choice depends on two numbers: how much you put on the card each year, and what an Avios is genuinely worth to you. This guide compares four American Express cards on standard earn rates, shows the break-even point, and includes a calculator so you can test your own spending.
Key takeaways
- The free BA Amex earns 1 Avios per £1. The free Amex Cashback Everyday earns 0.5% on the first £10,000 and 1% above that, and pays nothing unless you spend £3,000 a year.
- The break-even is low. On £12,000 of spending, an Avios only needs to be worth about 0.58p for the BA Amex to beat the free cashback card.
- Redemption decides everything. Avios Intelligence puts long-haul business class at 2.5p-4p per Avios, short-haul economy at about 1p, and shopping or gift cards at just 0.4p-0.6p.
- Fees change the picture. Amex Gold earns the same 1 point per £1 but costs £195 from year two, so on standard spending it only wins in its free first year or if you use its perks.
- All four cards are credit. Interest at 29.1% or more cancels any reward, so this only works if you clear the balance in full every month.
Is cashback or Avios worth more?
Avios are worth more if you redeem them on flights, and cashback is worth more if you don't. One Avios is commonly valued at around 1p, against 0.5p-1p per £1 for cashback, so a 1-Avios-per-£1 card usually earns more value than a cashback card on the same spending.
The catch is that an Avios has no fixed value. Avios Intelligence, reviewed 30 July 2026, calls 1p a "planning default" rather than an exchange rate, and suggests paying cash for flights when a redemption gets you less than 1p each. Cashback is worth exactly what it says.
So the honest answer is: Avios win for people who will book reward flights, and cashback wins for everyone else.
What do the main cashback and Avios cards earn in 2026?
American Express runs both the UK's best-known cashback cards and the British Airways cards. Here are the standard earn rates, fees and Representative APRs from Amex's own pages, checked 3 November 2026.
| Card | Earns | Annual fee | Representative APR |
|---|---|---|---|
| Amex Cashback Everyday | 0.5% to £10,000, then 1% (needs £3,000/year) | £0 | 29.1% variable |
| Amex Cashback | 0.75% to £10,000, then 1.25% | £25 | 34.6% variable |
| British Airways Amex | 1 Avios per £1 | £0 | 29.1% variable |
| BA Amex Premium Plus | 1.25 Avios per £1 | £300 | 135.7% variable |
| Amex Gold | 1 point per £1, transferable 1:1 to Avios | £0 in year 1, then £195 | 85.8% variable |
Sources: American Express UK card pages for Cashback Everyday, Cashback, BA cards and Gold; BA Amex earn rate per Which?; Gold transfer ratio per Head for Points. Credit is subject to status.
Welcome offers sit on top of these rates. The Cashback Everyday card currently pays 2% for the first 12 months, up to £200. The free BA Amex offers 5,000 bonus Avios when you spend £2,000 in three months, Premium Plus 30,000 Avios for £6,000, and Amex Gold 20,000 points for £3,000. Our Amex welcome bonus guide explains who qualifies.
Premium Plus recently cut its earn rate from 1.5 to 1.25 Avios per £1. Our Premium Plus earn rate cut article compares it with Barclaycard Avios Plus, which now earns more.
How much is an Avios really worth?
Somewhere between 0.4p and 4p, depending on how you spend it. Long-haul premium flights give the most value, and shopping redemptions the least.
| How you use Avios | Typical value per Avios |
|---|---|
| Long-haul business class reward flight | About 2.5p-4p |
| Short-haul economy reward flight | About 1p |
| Shopping, wine and gift cards | About 0.4p-0.6p |
Source: Avios Intelligence, "Avios Points Value 2026", reviewed 30 July 2026.
Reward flights still carry taxes and charges, so the value depends on the cash fare you'd otherwise pay. If you'd never buy a business class seat with cash, valuing your Avios at the business class fare overstates what they're worth to you. A cautious 1p is a fair starting point for most people.
Cashback vs Avios: which pays more at your spending level?
At 1p per Avios, the free BA Amex beats every cashback card on standard rates. On £12,000 a year it earns about £120 of Avios against £75 from Amex Cashback after its fee, and £70 from Cashback Everyday.
From year two, Amex Gold's £195 fee turns the same 12,000 points into a £75 loss on standard spending. Gold earns its keep through 2 points per £1 with airlines, 3 per £1 at Amex Travel and four Priority Pass lounge visits, not on everyday spending. Our Amex Gold vs Platinum comparison goes through those perks.
The gap between the BA Amex and the free cashback card grows as you spend more, because the cashback card pays only 0.5% on your first £10,000.
Try your own numbers. Change the value of an Avios to see where cashback takes the lead.
- Card spending per year£12,000
- What an Avios is worth to you1 p
- Amex Gold fee this year (£0 in year 1)£195
Take Action: Be honest about the pence-per-Avios figure. If you've never booked a reward flight, start at 0.5p and see whether cashback wins.
When is cashback the better choice?
Cashback is better if you won't redeem Avios on flights, if you value flexibility, or if you spend heavily with no plans to travel. It also never expires or loses value.
Cashback makes more sense if:
- You don't fly much, or always book the cheapest fare. Avios redeemed for vouchers are worth about half a penny, below the cashback rate.
- You want certainty. Amex pays card cashback as a lump sum each year, and its value doesn't change if airlines raise reward prices.
- You spend over £10,000 a year and want simple money back. The Amex Cashback card pays 1.25% above that, which closes the gap with Avios valued at 1p.
Remember to stack. A cashback card works alongside cashback sites and gift card apps, so the card's percentage is only one layer of what you earn. Our best cashback credit cards guide covers the alternatives to Amex for places that don't accept it.
When do Avios win?
Avios win when you redeem them on reward flights, especially long-haul or premium cabins, and when you hit a BA card's Companion Voucher threshold.
The 2-4-1 Companion Voucher is the big prize. Both BA Amex cards give one when you spend £15,000 in a card year, letting two people fly on an Avios reward flight for the Avios of one. On a long-haul business class trip, that voucher alone can be worth more than a year of cashback.
Avios also make more sense if you travel abroad, but watch the fee: Amex charges a 2.99% non-sterling transaction fee, which wipes out the rewards on foreign spending. Use a fee-free card abroad and keep the Amex for UK spending.
Cashback vs Avios FAQ
Is cashback better than Avios?
Cashback is better if you won't use Avios on flights, because shopping redemptions are worth only about 0.4p-0.6p each. Avios are better if you'll book reward flights, where they're typically worth 1p or more. On £12,000 a year, the free BA Amex beats the free Amex cashback card once an Avios is worth more than about 0.58p.
How much is 10,000 Avios worth?
About £100 at the common planning value of 1p each, according to Avios Intelligence's 2026 guide. Used on long-haul business class reward flights, the same 10,000 Avios can be worth £250-£400. Spent on shopping or gift cards, they're worth closer to £40-£60.
Can you convert Amex points to Avios?
Yes. Membership Rewards points from cards like Amex Gold transfer to Avios at a 1:1 ratio, according to Head for Points. That makes Gold flexible: you can also send points to other airline and hotel schemes, or use them for statement credit at a lower value.
Do you need to spend £3,000 to get cashback on the Amex Cashback Everyday card?
Yes. American Express says you must spend at least £3,000 in your card membership year to earn any cashback on the Cashback Everyday card. Below that, a points card or a cashback card without a minimum spend will earn more.
Is cashback from a credit card taxable?
No, not for personal spending. HMRC's Statement of Practice 4/97 says ordinary retail customers aren't liable to Income Tax on cashback.
The bottom line
If you'll use Avios on flights, a 1-Avios-per-£1 card beats cashback for almost everyone, and the free BA Amex is the simplest place to start. If you won't, take the cashback and stop worrying about points. If you spend £3,000 in three months anyway and like airport lounges, the Amex Gold bonus of 20,000 points is worth about £200 at 1p, but reassess before its £195 fee kicks in. Representative APR 85.8% variable. Whatever you choose, clear the balance in full: no reward beats a 29.1% interest rate.
Not sure a rewards card fits your wider finances? Our personal finance review looks at your spending, borrowing and goals together.