Parents with children starting or heading back to university could consider signing up to “Funds4Uni”, a new cashback service designed to help students fund their living costs.
According to NatWest Bank, parents give £205 per month on average towards their children’s living costs while at university.
With half a million students starting university this year alone and increased living costs thanks to 2.6% inflation and higher interest rates on loans , the pressure on parents’ and student’s income is high.
As a result, Fund4Uni, a cashback service set up by Easyfundraising and The Scholarship Hub, has launched to directly help students pay for living costs by giving them cashback earnings on the online purchases that parents and other family members make.
According to the company, up to eight family members can sign up, and any cashback made on a wide variety of online purchases goes directly to the student’s bank account. The site purports that this could potentially raise up to £860 per year for individual students.
Students can’t see which individual transaction belongs to which family member or friend. But if they log in to their Easyfundraising account they can see a leader board of their ‘supporters’ ranked on who has generated the most money. See the screenshot below for an idea of how it works.
Karen Kennard, founder of the Scholarship Hub says: “It’s the day-to-day living expenses of university that students and families struggle with. Maintenance loans are based on parental income so the amount offered varies enormously between students and can cause significant financial problems if students feel unable to ask parents to make up the gap or if they simply can’t afford to.”
How does Fund4Uni compare?
However, while Fund4Uni features providers that the two leading cashback websites, Quidco and TopCashback, exclude – such as Amazon and Sainsbury’s – other providers tend to beat it on the cashback rates offered.
So always compare cashback rates before buying. See the table below for a comparison of cashback offers from major retailers and insurers:
1.5% on all purchases
£30 on new annual car insurance policies
£52.50 for a new customer car insurance policy
£60 for a new annual car insurance policy
£16 donation on new annual home insurance policies
0.5% on all takeaways
6% for new customers, 3% for existing customers
5.25% for new customers, 2.1% for existing customers
3.75% on all purchases
1% cashback on all purchases up to £50
0.5% on all takeaways
4% for new customers, 1% for existing customers
4.2% for new customers, 1.05% for existing customers
Up to 5.5% on hotel stays and experience holidays
12% for hotel bookings, 8% for experiences
9.5% for hotel bookings, 11% for experiences
2% on all cruises
4% for all cruise bookings
3.15% for all cruise bookings
50p per online shop
£1 per online shop
£8 for a new customer grocery shop of £80 or more. £2 for an existing customer grocery shop of £100 or more
£10 for a new customer grocery purchase over £80. £2 for an existing customer grocery purchase over £100
Source: Moneywise, 11 September 2017. (i) New customer refers to someone who has never made an online purchase from the retailer/provider whether through the cashback site or not.
For more on how cashback works and what the benefits could be, read our guide How to cash in on cashback.