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Earning rate on the Sainsbury’s Nectar credit card drops dramatically

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We don’t write about the Sainsbury’s Nectar credit card much but we do cover it occasionally, including a full card review each year. It is, after all, another option for earning Avios under the Avios / Nectar partnership.

That said, we will now write about it even less. Sainsbury’s has come like a thief in the night and gutted the value of the card.

Earning rate on Sainsbury's credit card drops dramatically

From 1st November, the Nectar earning rate will be reduced to just 1 Nectar Point per £2 spent in Sainsbury’s, Argos, Habitat and Tu.

This is a 75% reduction on your return on spend at Sainsbury’s-owned retailers. A Nectar point is worth 0.5p so under the new rate your effective cashback rate in Sainsbury’s and Argos is just 0.25%.

Spending at all other retailers remains unaffected at the incredibly poor rate of 1 Nectar point per £5 spent – basically 0.1% back!

What should you do if you have the Sainsbury’s Nectar credit card?

Apart from the sign-up bonus of 8,000 Nectar points, there is now no reason – at all – to get this card.

The free Barclaycard Avios Mastercard outperforms it hugely, even when you shop in Sainsbury’s or Argos, earning you 1 Avios per £1 spent. Even if your ultimate goal was Nectar points and not Avios, you are far better off with Barclaycard. Your 1 Avios per £1 will convert into 1.6 Nectar points per £1, worth 0.8p.

Our review of the free Barclaycard Avios Mastercard is here and you can apply here.

Barclaycard Avios card

Barclaycard Avios Mastercard

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

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

If you are looking to apply for a new credit 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 with a bonus of up to 25,000 Avios. You can apply here.

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.

EDIT: Until 25th October 2022, there is an exceptionally generous sign-up bonus on The Platinum Card. You will receive 60,000 Membership Rewards points – double the usual amount – and £200 to spend at Amex Travel. You need to spend £6,000 within six months to earn the bonus.

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 Preferred Rewards Gold

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

The Platinum Card from American Express

60,000 points, £200 travel credit and an unbeatable set of travel benefits – for a fee Read our full review

Virgin Atlantic Reward+ Mastercard

15,000 points bonus 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:

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

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

Capital On Tap Business Rewards Visa

50,000 points bonus until 2nd October – 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 and no annual fee Read our full review

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