Sainsbury's Bank launches low rate, high reward credit cards

Sainsbury's Bank is launching two new credit cards offering the lowest standard interest rate available for purchases and balance transfers, a 7.8% APR representative variable, combined with two of the most attractive reward schemes in the marketplace.  The average balance transfer fee currently available in the market is 2.7% APR representative variable, however these new cards from Sainsbury's Bank do not carry a fee.
 
The Bank is laying down the gauntlet as the only provider to offer credit cards with an interest rate under 8% APR, combined with generous rewards. New research from Sainsbury's Bank reveals that the average APR on a credit card offering some form of reward or cashback is 17.58%, which is 9.58 percentage points above Sainsbury's Bank's new offering.
 
Customers can choose to be rewarded with Nectar points or earn cashback on their purchases:

The new Sainsbury's Low Rate Nectar Credit Card enables customers to collect up to five times the number of Nectar points normally earned on their in-store or online Sainsbury's shopping for the first three months (from the account opening), equivalent to 5% off their bill.  When the introductory offer ends, customers receive an on-going reward of up to 2% (4 points per £1 spent) back on their shopping, when used in-store at Sainsbury's in conjunction with their Nectar card.

Cardholders are also rewarded every time they purchase fuel at Sainsbury's petrol stations.  When paying with their Sainsbury's Nectar Credit Card, during the introductory reward period, they will collect 8 points on every full £1 of each separate fuel transaction, equivalent to 4% back on their transaction. In addition, when swiping their Nectar card at the till, 1 point is earned per litre of fuel purchased. Customers also earn 1 Nectar point for every £5 spent on their Sainsbury's Nectar Credit Card elsewhere.

The Sainsbury's Low Rate Cashback Credit Card provides 5% cashback on Sainsbury's shopping for the first three months (up to a maximum of £1,000 spend per month). During this time, card holders can also receive a further £5 cashback each month when they spend at least £250 at a Sainsbury's store and at least £250 at other outlets.  This reward is on-going after the introductory period ends.
 
Stuart McKeggie, Head of Sainsbury's Credit Cards, said: "We have listened to our customers and have created two new credit cards that offer the lowest standard interest rate available, combined with an attractive reward scheme. For regular Sainsbury's shoppers who would prefer to have a credit card with a long-term low rate, it will be difficult to find a better credit card."
 
To gain maximum benefit from having a credit card, customers should aim to pay off their balance in full each month however, if there are months where this isn't possible, Sainsbury's Bank's new market leading cards offer the lowest APR representative variable over the long-term.
 
Andrew Hagger from MoneyComms commented: "Sainsbury's Bank has a growing reputation for providing competitive rewards based credit cards for its shoppers and these two latest deals will not disappoint. The combination of a low interest rate and a generous reward programme will appeal to savvy shoppers who are striving to make every penny count in this tough economic climate."

The research, conducted by financial research company MoneyComms, reveals that fewer than one third (29.3%) of credit cards offer rewards and only 10.34% provide cashback, averaging 0.96% of spend. The research also reveals that the average APR representative variable on credit cards is 17.44% for purchases and 17.81% for balance transfers.
 
Sainsbury's Bank's two new credit cards will join the popular Sainsbury's Nectar Credit Card and Sainsbury's Cashback Credit Card, each offering a 15-month 0% introductory offer on balance transfers (3% fee), a 6-month 0% introductory offer on purchases and an APR representative variable of 17.9%. The cards offer the same rewards as the new products joining the suite.
 
To find out more about the new Sainsbury's Low Rate Nectar Credit Card or Sainsbury's Low Rate Cashback Credit Card log onto sainsburybank.co.uk.