New credit cards offer cashback or Nectar points

By Lucy Bower

Sainsbury's is launching two new credit cards, to compete with high street banks, through its finance arm Sainsbury's Bank, as The Daily Mail reports.

It already offers mortgages, insurance, savings and four other credit cards, but the new ones will have better rewards, it says: cashback or Nectar points.

It's reported that the cards come with 'high' interest rates, but there is potential for customers to earn money back on their shopping.

The Sainsbury's Nectar Credit Card gives customers up to five times as many Nectar points on their shopping in the supermarket: 10 points for every £1, or up to 5% off their groceries.

Sainsbury's Cashback Credit Card gives 5% cashback on purchases made in-store during the first three months, with a £1,000 spend limit per month. After three months, customers could claim £5 cashback per month if they spend at least £250 in store and at least £250 at other stores.

According to Hannah Bernard, Sainsbury's Bank's Interim Chief Executive, about 25% of all retail credit card transactions take place in supermarkets. It's also reported that customers who use Sainsbury's credit cards in-store spend, on average, 87% more than other customers.

Image © iStockPhotos / kai zhang

Tags: Sainsburys, credit cards, nectar points

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