Gift card apps are the easiest way to earn cashback on a supermarket shop, which normal cashback sites almost never pay on. With the Christmas food shop coming up, a few percent back on £100-plus trips adds up. Here's how JamDoughnut and Cheddar compare on rates, fees, rules and safety, checked today against each app's own website and terms, plus an independent daily rate tracker.
Key takeaways
- Both apps work the same way: buy a digital gift card for the exact amount at the till or checkout, pay with it, and the cashback is added to your balance instantly.
- Cheddar's own site lists up to 4.5% at Tesco, Argos and Boots, 4% at M&S and 3.5% at Sainsbury's, Asda and Waitrose (checked 1 November 2026).
- JamDoughnut paid 3.5% at Sainsbury's, Asda, Morrisons and Iceland on 1 November 2026, according to Scrimpr's daily rate tracker.
- Cheddar is cheaper to cash out: £5 minimum and "zero fees". JamDoughnut needs 1,000 points (£10) and charges a bank transfer fee, reported as 30p.
- JamDoughnut points expire 12 months after your last gift card purchase, and bonus points after 6 months, under its terms updated 3 June 2026.
How do JamDoughnut and Cheddar work?
Both are gift card apps: you buy a retailer's digital gift card in the app, then use it to pay. The retailer gives the app a discount on the card, and the app passes part of that to you as instant cashback.
In practice, you wait until the cashier gives you the total (or you reach the online checkout), buy a gift card for that exact amount, then scan the barcode or enter the code. Cheddar describes it as "Scan barcodes in-store or enter codes online", with cashback "added to your balance the moment you buy". JamDoughnut's terms say its digital gift cards can be used "in the applicable retailer's app, online ... or in applicable retailer stores".
The key difference from sites like TopCashBack is speed. Cashback sites can leave your reward "pending" for weeks or months, while gift card apps credit it on the spot. Cheddar's gift card page makes a point of it: "No waiting over 90 days like other cashback sites".
Take Action: Before your next big shop, install one app and check the rate for your supermarket. The app shows the live rate before you pay.
JamDoughnut vs Cheddar: side-by-side comparison
Cheddar has the simpler, fee-free cash-out and publishes its rates on its website; JamDoughnut has strong supermarket rates and a points system with expiry rules. Here's how they compare.
| JamDoughnut | Cheddar | |
|---|---|---|
| How you earn | Cashback points on gift cards (100 points = £1) | Cash balance on gift cards |
| Sainsbury's | 3.5% | Up to 3.5% |
| Asda | 3.5% | Up to 3.5% |
| Tesco | Not listed on Scrimpr's tracker on 1 Nov | Up to 4.5% |
| Morrisons | 3.5% | Not listed on cheddar.me |
| Minimum cash-out | £10 (1,000 points) | £5 |
| Withdrawal fee | Bank transfer fee (30p reported) | None ("Zero fees") |
| Expiry | Points expire 12 months after your last purchase; bonus points after 6 months | Must log in and transact at least every 6 months to keep cashback valid |
| How you pay | Instant bank payment for the full rate; card, Apple Pay or Google Pay pays about 1% less | Pay by Bank |
| Minimum age | 18+, UK resident, UK phone number | 16+, UK bank account, UK mobile |
Sources: cheddar.me retailer pages and terms (revision 1.5, 10 June 2025); JamDoughnut terms (updated 3 June 2026); JamDoughnut rates from Scrimpr's supermarket cashback tracker and JamDoughnut review, both updated 1 November 2026. Rates change daily, so check the app before you pay.
Which app pays the most cashback at supermarkets?
On 1 November 2026 the two apps were level at Sainsbury's and Asda (3.5% each). Cheddar listed up to 4.5% at Tesco, while JamDoughnut covered Morrisons and Iceland at 3.5%.
Cheddar's retailer pages show these "up to" rates:
Two things to watch:
- "Up to" means the top rate. Cheddar says rates "may vary depending on Cheddar perks like boosts, so check the app for the latest rates". Treat the website figure as a ceiling, not a promise.
- How you pay matters with JamDoughnut. Scrimpr's review says paying by instant bank payment "gets you the full cashback rate", while paying by debit or credit card "knocks about 1% off". If you want card rewards from a credit card on top, the lower rate may still work out fine, but check the numbers.
Rates also jump around. JamDoughnut runs temporary "pumped up" rates on some brands, and Cheddar runs boosts, so the best app for your shop can change week to week. Having both installed costs nothing.
Take Action: For a big Christmas shop, open both apps at the checkout and buy the gift card from whichever shows the higher rate that day.
How much could you earn on your food shop?
At 3.5% cashback, a £100-a-week food shop earns about £182 a year, and at 4.5% it's about £234. That's money back on spending you'd do anyway.
A one-off Christmas shop is smaller but still worth it: £250 at 3.5% is £8.75, and at 4.5% it's £11.25. Over December's extra spending on food, gifts and coffee, the totals grow quickly, especially at cafés, where Cheddar listed up to 9% at Costa and 10% at Caffe Nero.
Plug your real food spending into the UK Budget Planner to see what a few percent back is worth to you. With inflation at 3.5%, clawing back a similar percentage on the weekly shop helps your budget keep pace.
Are JamDoughnut and Cheddar safe and legit?
Both are established UK companies with published terms, but neither is a bank. Your cashback balance isn't a savings account, so cash out regularly rather than letting it build up.
- JamDoughnut is run by JamDoughnut Limited (company number 12277192), registered in London. Its terms describe your balance as "Cashback Points", which you can redeem at £1 per 100 points once you reach 1,000.
- Cheddar is run by Cheddar Payments Limited (company number 12895809). Its website says it is "authorised and regulated by the Financial Conduct Authority". Its terms also say "we do not hold money in your Cheddar Profile or an account similar to a bank" and that legal title to cashback only passes to you when you withdraw it.
The other risk is the gift card itself. As Which? points out, if a retailer goes into administration, you may struggle to get the value of an unused gift card back. That's why the safest habit is to buy the card for the exact amount, at the till, and spend it immediately.
Take Action: Cash out once you hit the minimum (£5 on Cheddar, £10 on JamDoughnut) and never pre-load gift cards weeks ahead.
JamDoughnut vs Cheddar: which should you choose?
Cheddar may suit you if you want simple, fee-free withdrawals from £5 and shop mainly at Tesco, Argos, Boots or coffee chains. JamDoughnut may suit you if you shop at Morrisons or Iceland, or want a second app to catch its pumped-up rates.
| You... | Better fit | Why |
|---|---|---|
| Shop mainly at Tesco | Cheddar | Up to 4.5% listed on cheddar.me on 1 Nov 2026 |
| Shop at Morrisons or Iceland | JamDoughnut | 3.5% on Scrimpr's tracker; not listed on Cheddar's site |
| Shop at Sainsbury's or Asda | Either | Both at 3.5% on 1 Nov 2026 |
| Want small, frequent cash-outs | Cheddar | £5 minimum, no withdrawal fee |
| Rarely use the app | Cheddar, cautiously | JamDoughnut points expire 12 months after your last purchase; Cheddar needs activity every 6 months |
| Want to pay by card or Apple Pay | Cheddar or JamDoughnut at a lower rate | Cheddar uses Pay by Bank; JamDoughnut's card rate is about 1% lower |
For most people the honest answer is both. They're free, take two minutes to set up, and the higher rate on the day wins. Gift card apps are only one layer, too: our guide to stacking cashback apps shows how to combine them with a rewards card, a card-linked app and a cashback site, and our best cashback apps UK round-up covers the alternatives.
For online Christmas shopping, where gift card apps often don't cover the retailer, a cashback site like TopCashBack is the better tool. See our Black Friday cashback guide and TopCashBack vs Quidco comparison.
Common mistakes to avoid
Most lost cashback comes from a few avoidable slips.
- Buying the card for the wrong amount. Wait for the final total, including any Clubcard or Nectar prices, then buy the card.
- Paying by card on JamDoughnut without noticing. You'll get a lower rate than instant bank payment.
- Letting points expire. JamDoughnut points expire 12 months after your last gift card purchase, and bonus points after 6 months.
- Leaving a balance sitting in the app. Withdraw once you pass the minimum.
- Assuming the website rate is today's rate. Both apps change rates often. The app shows the live figure before you pay.
FAQ
Is JamDoughnut or Cheddar better?
Neither wins outright. On 1 November 2026 both paid 3.5% at Sainsbury's and Asda, Cheddar listed up to 4.5% at Tesco, and JamDoughnut covered Morrisons and Iceland. Cheddar has the cheaper cash-out (£5, no fee), while JamDoughnut needs £10 and charges a small transfer fee. Many people use both and pick the higher rate.
How does Cheddar cashback work?
You choose a retailer in the Cheddar app, buy a digital gift card for the amount you're spending using Pay by Bank, and cashback is added to your balance instantly. You then scan the barcode in store or enter the code online. You can withdraw to your bank from £5, and Cheddar says there are no withdrawal fees.
Do JamDoughnut points expire?
Yes. Under JamDoughnut's terms (updated 3 June 2026), cashback points expire 12 months after the date you last bought a gift card, and bonus points expire after 6 months. Points are worth £1 per 100 and can be withdrawn once you have 1,000 points (£10), so cash out regularly.
Is the Cheddar app safe?
Cheddar Payments Limited says it is authorised and regulated by the Financial Conduct Authority. Its terms say it doesn't hold money for you like a bank, and cashback only becomes yours legally when you withdraw it. The safest approach is to withdraw from £5 and spend gift cards straight after buying them.
Can you use JamDoughnut or Cheddar at Tesco?
Cheddar lists Tesco gift cards with up to 4.5% cashback (checked 1 November 2026) and also offers a reloadable Tesco card. JamDoughnut has a Tesco gift card page, but Scrimpr's rate tracker on 1 November 2026 didn't list JamDoughnut as a Tesco option, so check the app for the current rate.
Which cashback app is best for supermarket shopping?
Gift card apps like JamDoughnut and Cheddar are usually best for supermarkets, because cashback sites rarely pay on in-store grocery shopping. On 1 November 2026 typical rates were about 3.5% at Sainsbury's, Asda and Morrisons, and up to 4.5% at Tesco through Cheddar. Rates change, so compare apps before you pay.
The bottom line
JamDoughnut and Cheddar both turn your normal food shop into a few percent of instant cashback, which is hard to get any other way at supermarkets. Cheddar edges it on simplicity, with a £5 fee-free cash-out and up to 4.5% at Tesco; JamDoughnut is a strong second app for Morrisons, Iceland and its boosted rates. Install Cheddar and JamDoughnut, check both at the till, and cash out regularly.