Sainsbury’s Bank, the grocery chain’s financial arm, has today announced plans to launch two new credit cards as it steps up competition with its high street rivals.
Launched to run as part of its popular Nectar loyalty scheme, the first of the two cards, which are both available from tomorrow, allows users to earn up to five times the number of points normally earned from a transaction.
For the first three months from the account opening, customers with a Sainsbury’s’ Nectar Credit Card will receive up to five per cent back on the cost of their shopping, while in the longer-term shoppers could earn the equivalent of up to two per cent back, representing four points earned per £1 spent.
A new cashcard will also be available, offering five per cent cashback on purchases for the first three months up to a maximum of £1,000 a month, after which users could also receive £5 cashback per month when spending at least £250 at Sainsbury’s and at least £250 at other outlets, though this offer is also available during the introductory period.
“Both cards have been created with the Sainsbury’s shopper in mind; we are offering our customers choice on how they earn and redeem their rewards,” said Stuart McKeggie, Head of Sainsbury’s Credit Cards.
“Our research shows that there are very few cards currently available that offer rewards of this value as well as offering competitive introductory periods and we’re delighted to add them to our existing product suite.”
Last month, rival Tesco Bank announced an extension to its offer allowing Clubcard holders to receive points as they pay back their mortgage, while high street retailer Marks & Spencer (M&S) launched M&S Bank earlier in the summer, introducing two current accounts complete with set up fees for all new customers as retailers seek to compete with traditional banks.
Sainsbury’s was the first major UK supermarket to offer a banking service, opened in association with Lloyds Banking Group in 1997.