Sainsburys bank has killed its Nectar credit card

Back in June, I wrote about the Sainsburys Bank Nectar Credit Card, which I noted as a solid option for people that shop frequently at Sainsburys or Argos in the UK. However, a few days ago, Sainsburys Bank announced it was cutting the card’s earn rate, which effectively kills the card off now. The changes start November 1, 2022.

The card still has no annual fee but still 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 still has an 8 000-point welcome bonus, after spending £400 at Sainsburys or its affiliated stores (Argos, Tu Clothing, or Habitat) in the first 2 months.

Earnings

This is where the card has now lost all appeal. The card offers just 1x point per full £5 spent anywhere else, which is the equivalent of 0.1% cashback (when redeemed at Sainsburys) or 0.125 Avios/£1, both of which are awful. The most basic Barclaycard Rewards card offers a flat 0.25% cashback on all purchases. However, there is a bonus category on the Sainsburys card: Sainsburys group purchases.

The biggest insult with the changes to the card is found here. Sainsburys is cutting the earning rate by 75% on purchases with itself. Instead of offering 2x points per full £1 spent, starting November 1, 2022, it will offer instead 1x points per £2 spent. This is the equivalent of 0.25% cashback (when used at Sainsburys), down from a full 1%. This is now equivalent to 0.3125x Avios/£1, down from 1.25x Avios/£1.

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 (5.0%)	200 MP + 36 NP (7.4%)	£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?

Almost certainly not. I wouldn’t even waste my time with this card just for the welcome bonus any more. This card is strictly worse than the Barclaycard Rewards Card. Get that one instead. Or if you want a card that earns Avios instead of cashback, get the BA Amex or Barclaycard.