MSE News

Sainsbury's Bank slashes Nectar points earned on credit card spending from 1 November - here's what's happening

If you have a Sainsbury's credit card and use it to earn Nectar points, you have just one week until the supermarket cuts the number of points you earn when shopping at the retailer. From 1 November, you'll get just one Nectar point for every £2 spent at Sainsbury's.

This applies to ALL Sainsbury's credit card holders, as all of the supermarket's cards offer the ability to earn Nectar point rewards. Sainsbury's said in September that it would either email or write to customers to inform them of the change. 

We've full details below on what's happening, though you can also see our Supermarket shopping tips guide for more info on cutting grocery costs. If you're considering changing your credit card as a result of the shake-up, see our Credit card rewards guide for our best buys. 

You'll soon get one Nectar point for every £2 spent on your Sainsbury's credit card

From the morning of 1 November (Sainsbury's couldn't give an exact time yet), shoppers who use their Sainsbury's credit card to earn Nectar points will get:

  • One Nectar point for every £2 spent on their Sainsbury's credit card. This is down from two points for every £1 spent. This applies when shopping at any Argos, Habitat or Sainsbury's store (including Tu clothing). 

  • One Nectar point for every £5 spent elsewhere. This is the same as at present. This also includes some spending at Argos and Sainsbury's, such as at Argos's separate spares and accessories website, and in Sainsbury's cafes.   

To ensure your Nectar card is linked to your Sainsbury's credit card account, contact Sainsbury's credit card enquiries phone line on 08085 40 50 60. 

If you have any large purchases planned it may be best to place them before 1 November, if possible, to ensure you get more Nectar points for your money. Of course, don't use this as an opportunity to overspend and always ensure you pay off your credit card in full each month. See our Five reward card need-to-knows to ensure you're not left out of pocket.  

There's no change to the free Nectar card loyalty scheme

Under the free Nectar card loyalty scheme, you can continue to earn one point for every £1 spent at Sainsbury's, Argos, eBay, Esso and more. You'll also continue to earn points elsewhere, though the value depends on the retailer and the purchase.   

Points are then worth 0.5p to spend at Sainsbury's, or you can boost their value by swapping them for rewards to spend at certain retailers. See our Loyalty points boosting guide for more on this. 

How Sainsbury's credit cards compare with other reward cards

If you want to earn Nectar points on your everyday spending, you might want to consider switching to the:

  • Amex Nectar card - if you spend £2,000 within the first three months of applying, you can get 20,000 Nectar points. Afterwards, for every £1 spent (on all spending, not just Sainsbury's shopping), you get two Nectar points – though be aware there's a £25 annual fee after the first year.

Alternatively, if you're willing to switch supermarket there are a number of cashback credit card providers that give holders a certain percentage of their spending back when they use the card. Some options include: 

  • The Asda Money card - it pays 1% cashback on spending at Asda, which you then convert into vouchers to spend at the supermarket. It also pays 0.3% on spending elsewhere. 
  • The M&S Bank card - it pays two points for every £1 spent at M&S in your first year, and then one point for every £1 spent at M&S after that. It also pays one point for every £5 spent elsewhere.  
  • The Tesco Bank Mastercard - it pays one Clubcard point for every £4 spent at Tesco and one point for every £8 spent elsewhere.  

See our Credit card rewards guide for more info on the current best buys. Before applying for any credit card it's worth using our Eligibility Calculator first to check if you're likely to be offered the card, as unlike our tool, any card application will show up on your credit file and may hit your credit worthiness (see our Credit Scores guide for more on how they work). 

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