UK Sainsburys Nectar Credit Card

I decided to take a short break from writing about US credit cards to discuss a UK credit card.  Most non-Amex UK credit cards are relatively unexciting, with the exception of the new BA Barclay cards.  In this post, I’m going to talk about the Sainsburys Bank Nectar Credit Card.  Nectar points are Sainsburys rewards currency. The card has no annual fee but has a standard 2.99% foreign transaction fee.

I provide the information here just to give readers a vague idea if the rewards offered by the card might make sense for them to consider the card.  All information should be confirmed with the card company before applying.

Welcome offer

The Sainsburys Nectar credit card has an 8 000-point welcome bonus, after spending £400 at Sainsburys or its affiliated stores (Argos, Tu Clothing, or Habitat).

Earnings

The card has a simple earning structure of 2x points per full £1 spent at Sainsburys or its affiliated and 1x point per full £5 spent anywhere else. Nectar points can be redeemed for a Sainsburys credit at a rate of 500 points = £2.50. Alternatively, Nectar points can be turned into British Airways Avios at a rate of 400 points = 250 Avios.  In effect, this gives an earning rate of 1.25x Avios/£1 or 0.625x Avios/£5.  This also means that the welcome bonus of 8 000 points can become 5 000 BA Avios, which is the same bonus offered on the free Amex and Barclays BA cards.

Benefits

The only reason to get this card really is to have a non-Amex credit card that earns rewards.  It offers no benefits beyond just being a credit card that earns points.

Examples of using the card

Card	World Traveller (£558) Total Avios (% return)	Hotel night in Oxford (£181/night)	Points values (WT/Hotel)
No rewards card	2 728 (4.9%)	2 200 MP (7.3%)	£27.28 / £13.20
BA Amex	3 284 (5.9%)	2 200 MP + 181 Avios (8.3%)	£32.84 / £15.01
Sainsburys Card	2 728 Avios + 111 NP (7.9%)	2 200 MP + 36 NP (8.8%)	£27.84 / £13.38
Marriott card	2 728 Avios + 1 112 MP (6.1%)	3 506 MP (11.5%)	£33.95 / £21.04

Is this credit card right for you?

If you want a non-Amex card and you use Sainsburys as your main grocery store, then this card might make sense for you, especially with the 8 000-point welcome bonus.  However, its earn rate is so low on other purchases that you’d probably be better off with a straight cashback card.  Given the choice between this card and just a debit card, however, this card definitely wins because it offers the protections of a credit card and a little points boost.