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NEW: Get 10,000 Nectar points (6,250 Avios) with the free Sainsbury’s Nectar Credit Card

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Sainsbury’s Bank has, until 9th November, boosted the bonus on the Sainsbury’s Nectar Credit Card.

This free Mastercard usually has a sign-up bonus of 8,000 Nectar points, which converts to 5,000 Avios.

For the next couple of weeks, this is increased to 10,000 Nectar points. 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 worth thinking about.

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.

You can ONLY apply for the 10,000 points offer via this link and not via the standard Sainsbury’s Bank website.

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

Until 9th November, 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.

The usual bonus is 8,000 Nectar points, worth 5,000 Avios, and I would expect it to return to this level after 1st December.

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.

What are the conditions of applying?

There is no stated minimum income requirement.

You must have a Nectar card to apply. Sainsbury’s would prefer you to have held one for six months before applying for the credit card, but this is not compulsory.

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 now work with Apple Pay, which was not the case a year ago, and with Google Pay.

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 1 point per £2 for spending in Sainsbury’s, Tu Clothing and Argos.

(The rate in Sainsbury’s, Tu Clothing and Argos is currently higher but is being cut sharply, to 1 point per £2 spent, on 31st October.)

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. Given that the return is so poor in the first place, this is astonishing penny-pinching.

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 Nectar 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 and Argos you would earn 0.312 Avios per £1.

Avios nectar shopping

How does a 0.125 Avios per £1 compare to other Mastercard or Visa credit cards?

It’s a joke, to be honest.

Let’s assume that you get the free Barclaycard Avios credit card. This earns 1 Avios per £1 spent. You can transfer these to Nectar and get 1.6 Nectar points per £1, worth 0.8p.

Astonishingly, the free Barclaycard Avios credit card earns you 8x the rewards of the Sainsbury’s Nectar Credit Card. This is before you factor in the annual Barclaycard / British Airways upgrade voucher too!

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

Yes, potentially. It is down to how desperate you are for 6,250 Avios, your ability to hit the qualifying spend and your willingness to add another card to your credit file.

The Sainsbury’s Nectar Credit Card sign-up bonus is worth considering. 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 good sign-up bonus. 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. Even the ‘improved’ rate of 1 point per £2 spent in Sainsbury’s, Argos or Tu Clothing is a bit of a joke.

The application form for the Sainsbury’s Nectar Credit Card 10,000 points offer can be found here. The special bonus offer ends on 9th November.


Want to earn more points from credit cards? – December 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.

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 & four airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and unbeatable 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 £200 Amex Travel credit every year 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

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 and no annual fee Read our full review

Comments (31)

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

  • Jon says:

    I have the card and as people have already said the earning rate is very poor. Through my health cash plan I get access to a rewards scheme where I can buy Sainsbury’s gift cards and save 4% – a much better return of anything Nectar could offer although still claim the Nectar points from the shop – scan Nectar card then pay with gift card which can be reloaded.

    • Peter says:

      Through PAW I get 5% off, so the bonus for me would be much less. I could buy £400 GC paying with Chase and saving £24, so the 10000 bonus worth £50 is only £26 saving. I’ll pass, hopefully some Monese GC show up this year.

  • Max says:

    Does petrol at Sainsbury’s count towards the £400? I can’t seem to find anything that says it excludes it

    • Lady London says:

      only if you look above, on the preceding page for the earlier comment made on this 🙂

      • KevinS says:

        One says it does, the other comment says it doesn’t 🙂

        • sjclub says:

          Spend at Sainsburys petrol stations definitely does count towards the £400 spend in the first 2 months in Sainsburys, Argos, Habitat and Tu clothing.

  • Juan says:

    From what I understand, your score might be affected for a few months but it should recover after that. Bear in mind, if you are planning for applying for other credit, specially something like a mortgage in the near future, applying for this now may have a negative effect and your future application could be denied. Conversely, if you have applied for credit in the last six months, your application may be declined. With regards to the scores themselves, every company that offers credit have their own way to asses your credit worthiness and you should not rely so much on the so called scores, they are only a guide. What is really important is to not have defaults, missed payments, etc, plus your information should be the same in all 3 credit agencies as if the company you apply to credit for review your credit Report (They don’t see your scores) with more than one of them and find discrepancies, this will affect your chances of getting credit.

    • Sam says:

      Not true. I apply for new credit cards and bank accounts every few months for the last few years and I have no issues in getting them approved. I even get credit limit of £15,000+. I don’t know where the six month rule comes from. The key to having credit cards approved is having a full-time job with stable income. I believe the what gets in the way to your mortgage application is always down to how much you can borrow (multiplier of your income) rather than how often you take out debts.

  • pbcold says:

    The only exclusions I could find are below. Presumably they won`t know if you`ve bought gift cards or not though.

    6. Spend at Argos eBay stores, Argos Clearance stores, Argos For Business, Argos Spares, Argos Financial Services, Sainsbury’s Bank, Sainsbury’s Energy, Sainsbury’s Cafes, Sainsbury’s e-Gift Cards and any other Sainsbury’s services is excluded.

  • Jon says:

    There IS a stated income requirement, during the signup process – £10k

    “To be eligible you must
    Have a mobile number and email address – we need these details to securely manage your account online (if you don’t have a mobile number or email address you can apply by calling us on the number at the top of the page).
    Be aged 18 or over.
    Have an annual income of £10,000 or more.
    Live in the UK (or have a British forces address).
    Not have a current Sainsbury’s Bank credit card.
    Not have been declined credit in the last month.
    Not have a history of County Court Judgement or bankruptcy.”

  • Sam says:

    I applied through the specified link but upon calling the application team the agent was not aware of a 10,000 points welcome bonus and said that the one I signed up for came with the 8,000 points offer. I am now worried. Has anyone been able to clarify this with Sainsbury’s bank?

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

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