Sainsbury's Credit Card - Reducing Points

johnny5a

Just got a letter in the post from Sainsbury's Bank stating the following:

- In Sainsbury's stores you will recieve 1 point per £2 spent
- Elsewhere, your reward will move to 1 point per £5 spent

This change takes effect from 19th August 2005.

daveboy

Here begins the end of Sainsbury's association with Nectar.

It appears to me they are edging closely towards the exit door hoping that no-one will notice them leave.

Nick_C_4

Here begins the end of Sainsbury's association with Nectar

But isn't this cashback points, not Nectar points? Yes, you can exchange them for Nectar points, but you can also exchange them for cash (as I do). This presumably doesn't affect how Nectar points are earned in Sainsbury's for other payment methods.

I haven't got my letter yet. It's a bit disappointing, but as the cashback was only 0.25%, it wasn't the primary reason for having the card anyway (that was the 0% deal). A back-of-an-envelope calc says my cashback may go down from £30 a year to £10 a year assuming all my spending goes on the card....but as the money I spend's also earning 5% in a savings account I'll stick with the card for the rest of the year.

esalan

I don't have the figures to hand, but I am sure you will now find that using the Tesco credit card in Sainsbury, along with your Nectar card, will be more rewarding than using the Sainsbury credit card! And, of course, the potential value of Clubcard points is greater than the so-called value of Nectar points!

lswwong

esalan wrote:

the potential value of Clubcard points is greater than the so-called value of Nectar points!

Agreed! I only use the Sainsbury's card for its 12mths 0% interests on purchases offer.

Nick_C_4

I am sure you will now find that using the Tesco credit card in Sainsbury, along with your Nectar card, will be more rewarding than using the Sainsbury credit card!

Assuming I'm reading the rules correctly, and assuming spend in Sainsbury's and redemption of points in Sainsbury's for Nectar and Tesco for Clubcard:

Tesco card + Nectar: 0% interest on payments + effectively 0.5% back for Clubcard points + 1% back for Nectar points

Sainsbury's card + Nectar: 0% interest on payments + 1% back for Nectar points + 0.125% cashback

Might be worthwhile for other people, but I don't have easy access to a Tesco, it would probably cost me more to drive to Tesco (30 mins away) than the benefits (0.375% on what I spend in Sainsbury's).

Of course if you intend to spend your points on other deals it could all be different.