What’s the deal?

The AA motoring organisation has launched a credit card giving rewards of up to 2 per cent of spending on fuel, car parking and servicing. The card is on offer to the AA’s 15m members and to non-members.

Members earn two reward points per £1 of motoring-related purchases and one point per pound on other spending. The higher reward rate includes purchases of fuel from supermarkets and spending on AA products and services.

These points can be swapped for vouchers for high street retailers including M&S, Argos and John Lewis, with every 100 points worth £1 in vouchers. Points can also be redeemed, for the same value or higher, for AA services or other motoring products such as roof racks.

Alternatively, cardholders can take cashback for their points, but at a lower value of 1p per two points.

Non-members earn points at half the rate of AA members – giving them rewards worth up to 1 per cent on motoring spend.

In addition, the card charges 0 per cent interest on motoring purchases for the first 12 months.

Is this good?

The card could be attractive for AA members who spend a lot on fuel and motoring costs. As well as earning rewards worth 2 per cent – assuming they swap their points for shopping vouchers – these motoring purchases can also be interest-free for the first 12 months. Nor are drivers tied to particular garages or service outlets to earn the higher rewards.

What’s the catch?

If rewards are taken as cashback, the value is half that of the vouchers. The card is also less attractive for non AA members, who earn rewards worth just 0.5 per cent of non-motoring spend. If they took points as cashback, the return would be just 0.25 per cent.

What’s the alternative?

American Express’ Platinum Moneyback is the top card for cash rewards. It pays new cardholders 5 per cent cashback for the first three months. It then pays tiered rates up to 1.25 per cent, depending on spend.

How do I find out more?

www.theAA.com

www.rewardschecker.com for other card schemes.