Maximise your Avios, air miles and hotel points

Is the 10,000 Nectar points (6,250 Avios) bonus on the free Sainsbury’s Nectar Credit Card ending?

Links on Head for Points may pay us an affiliate commission. A list of partners is here.

UPDATE – MAY 2022:  This article is now out of date, but don’t worry.  We produce a monthly directory of the top UK travel credit card offers – please click HERE or use the ‘Credit Cards’ menu above.  Thank you.

The Platinum Card from American Express has doubled its sign-up bonus to 60,000 Membership Rewards points, which convert to 60,000 Avios, if you apply by 1st June 2022. You can apply here.

Is Sainsbury’s Bank about to cut the bonus on the Sainsbury’s Nectar Credit Card?

When the Avios and Nectar partnership launched in January 2021, I initially thought that Sainsbury’s Bank would prove to be a good place to earn points. In general, I was wrong.

However, one sweet spot was the 10,000 Nectar points sign-up bonus on the free Sainsbury’s Nectar Credit Card. This is worth 6,250 Avios.

It certainly isn’t a great credit card for day to day spending, as I will explain, but arguably 6,250 Avios as a sign-up bonus on a free credit card is not to be ignored.

Is this generous sign-up offer going away?

The application page for the Sainsbury’s Nectar Credit Card has changed. It now says:

Apply by 8 August 2021 to collect 10,000 bonus points when you use your card to spend a total of £400 or more at Sainsbury’s, Argos, Habitat or Tu Clothing during the 2 months after your account is opened.”

What will happen after 8th August? We don’t know. We don’t have a commercial relationship with Sainsbury’s credit cards and they do not tell us what is going on. Your guess is as good as mine.

If you were thinking of applying, you may want to do it sooner rather than later.

About the Sainsbury’s Nectar Credit Card

The Sainsbury’s Nectar Credit Card is issued by Sainsbury’s Bank, a wholly owned subsidiary of the supermarket chain.

The card is issued as a Mastercard.

The representative APR is 20.9% variable.

Sainsbury’s Bank issues a number of credit cards with different features. All have the same earning rate per £1 spent. This version has the most generous Nectar sign-up bonus.

If you want to see what other options are available, visit this page of the Sainsbury’s Bank website.

What is the Sainsbury’s Nectar Credit Card sign-up bonus?

Until 8th August, you will receive 10,000 Nectar points when you spend £400 at Sainsbury’s, Tu Clothing or Argos within your first two months.

This is worth 6,250 Avios if you convert the Nectar points.

You can learn more about the Nectar and Avios partnership in our article here. Details of how to convert Nectar points to Avios are on ba.com here.

We have no idea what will happen to the bonus after 8th August.

What are the conditions of applying?

There is no stated minimum income requirement.

Feedback from readers is that the self-employed are not currently being accepted.

The small print used to say that you must have held a Nectar card for at least six months. I imagine that Sainsbury’s uses your shopping patterns as a way of partially validating the information on your application.

The wording has now been softened and says that you must be a Nectar cardholder and “should have been one for at least 6 months”. It is no longer compulsory, it seems.

Any other benefits?

All new cardholders receive two financial benefits:

  • 0% interest on balance transfers for 12, 14 or 17 months depending on circumstances
  • 0% interest on purchases for 12, 14 or 17 months depending on circumstances

Note that Sainsbury’s credit cards cannot be used with Apple Pay yet.

What is the Sainsbury’s Nectar Credit Card annual fee?

There is no annual fee.

What do I earn per £1 spent on the card?

The earning rate on the card is 1 Nectar point per £5 for general spending and 2 points per £1 for spending in Sainsbury’s, Tu Clothing and Argos.

The website says that you receive 3 points per £1 for spending with Sainsbury’s. When you look at the small print, you will see that they are including the 1 point per £1 on base Nectar earning.

Points are earned ‘per transaction’. This means that a £4.99 purchase outside of Sainsbury’s will earn nothing. A £9.99 transaction would only earn one Nectar point.

What is a Nectar point worth?

In virtually all circumstances, a Nectar point is worth 0.5p.

Here is our HfP guide on how to spend Nectar points.

1 point per £5 charged to your card is equivalent to a 0.1% rebate on your spend.

In reality, it is worse than this because your spending is rounded down to the nearest £5 per transaction before points are awarded.

With 1 Nectar point worth 0.625 Avios, you would earn 0.125 Avios per £1 spent outside Sainsbury’s. Inside Sainsbury’s you would earn 1.25 Avios per £1.

If you value an Avios at 1p, your return on general spending is 0.125%.

Avios nectar shopping

How does a 0.125% return compare to a cashback credit card?

My default comparison card is the John Lewis / Waitrose Mastercard which is free for life and offers 0.25% cashback in vouchers.

On this basis, this is a good card to use in Sainsbury’s, Argos and Tu Clothing but you are very likely to have a more rewarding card in your wallet to use elsewhere.

Is the Sainsbury’s Nectar Credit Card worth getting purely for the sign-up bonus?

Yes.

The Sainsbury’s Nectar Credit Card sign-up bonus is worth having. 10,000 Nectar points is worth 6,250 Avios.

You need to spend £400 in Sainsbury’s, Argos or Tu Clothing within two months to trigger the bonus. Before you apply, be certain that you can manage this.

It is likely that gift card purchases, for other companies, bought in Sainsbury’s would trigger the bonus.

Conclusion

The Sainsbury’s Nectar Credit Card has a great sign-up bonus and it may be going away after 8th August. We have no information about whether the bonus will disappear entirely or simply shrink after this date. It could even go up, of course.

The bonus of 10,000 Nectar points will convert into 6,250 Avios. The on-going earnings rate of 1 Nectar point per £5 spent is weak, unfortunately, and this card is not a great ‘keeper’ for daily spending.

However, earning 2 Nectar points (worth 1.25 Avios) for every £1 spent in Sainsbury’s, Argos or Tu Clothing IS attractive. This card may be worth keeping if you are a regular Sainsbury’s shopper and are not earning 1.5 Avios per £1 from a British Airways Premium Plus credit card.

The application form for the Sainsbury’s Nectar Credit Card can be found here.

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibly to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points. The site discusses products offered by lenders but is not a lender itself. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as an independent credit broker.


Want to earn more points from credit cards? – May 2022 update

If you are looking to apply for a new credit or charge card, here are our top recommendations based on the current sign-up bonuses.

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards. You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

25,000 Avios for signing up and an upgrade voucher for spending £10,000 Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher for spending £20,000 Read our full review

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

The Platinum Card has doubled its sign-up bonus to 60,000 Membership Rewards points, which convert to 60,000 Avios or other airline miles, if you apply by 1st June 2022.

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable card perk – the 2-4-1 voucher Read our full review

American Express Amex Gold

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

American Express Platinum card Amex

The Platinum Card from American Express

60,000 points (SPECIAL OFFER) and an unbeatable set of travel benefits – for a fee Read our full review

Virgin Rewards Plus credit card

Virgin Atlantic Reward+ Mastercard

30,000 points bonus (SPECIAL OFFER) and 1.5 points for every £1 you spend Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

Amex Platinum Business American Express

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

British Airways Accelerating Business American Express card

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

Capital on Tap Visa card

Capital On Tap Business Rewards Visa

10,500 points bonus – the most generous Avios Visa for a limited company Read our full review

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.

Barclaycard Select Cashback credit card

1% cashback (3% on business travel for four months) and no annual fee Read our full review

Comments (41)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Tracey says:

    In very basic terms, spend £400 in Sainsbury’s, get back £50+£4=£54 back. Discard card.

    • BJ says:

      Not wise, they have a habit of providing generous spend incentives on dormant cards. Better to shove it in a drawer and wait and see.

  • Patrick Cold says:

    Does anyone know if one can use this sign-up offer twice? Thanks.

    • BJ says:

      Yes, mow on my fourth or fifth card. I left 6 month between cancelling and reapplying but somebody reported 3 months is enough. I would not do it that quick myself though.

  • Benilyn says:

    Side question – had a 0% card with them where the 0% period has rolled off. Any idea how long to wait before I can apply again for a 0% card from them?

  • ashish says:

    MS with this one?.

  • Robert says:

    Just signed up (been meaning to for a while…). It’s been 30mins and no email confirmation… will wait with anticipation for the card to (hopefully) arrive.

  • bafan says:

    It says “should have been a Nectar member for six months”. I’ve only been signed up for three, is that a dealbreaker?

    • BJ says:

      Very likely, not worth the risk. See what they’re offering in 3 months time.

      • Rob says:

        Last time we wrote about this, loads of people signed up who got a Nectar card the same day and it worked OK.

  • FatherOfFour says:

    Signed up for this one, approved and arriving in the next few days. That’s 75% of the Avios burnt on seat reservations back for very little work. A good week- thanks Rob!

  • Allan says:

    John Lewis vouchers at Sainsbury’s?

This article is closed to new comments. Feel free to ask your question in the HfP forums.

The UK's biggest frequent flyer website uses cookies, which you can block via your browser settings. Continuing implies your consent to this policy. Our privacy policy is here.