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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.

There is the Nectar American Express credit card, take a look at our review here.

The free Barclaycard Avios Mastercard outperforms is your best bet though, 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 at £20,000 Read our full review

Want to earn more points from credit cards? – September 2023 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

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

Barclaycard Avios card

Barclaycard Avios Mastercard

5,000 Avios for signing up and an upgrade voucher at £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.

SPECIAL OFFER: The sign-up bonus on the Virgin Atlantic Reward+ Mastercard is doubled to 30,000 Virgin Points if you apply by 2nd October. You receive 15,000 Virgin Points with your first purchase and a further 15,000 points if you spend £3,000 within 90 days. Apply here.

British Airways American Express Premium Plus

25,000 Avios and the famous annual 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 & four airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and a huge range of valuable benefits – for a fee Read our full review

Virgin Atlantic Reward+ Mastercard

30,000 bonus points (SPECIAL OFFER TO 2ND OCTOBER) 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 bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

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

Capital On Tap Business Rewards Visa

Get a 10,000 points bonus plus an extra 500 points for our readers 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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