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Sainsbury’s Bank Launches Two Market Leading Low Rate, High Reward Credit Cards

24 April 2013

On Thursday (25th April 2013), 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.(1)

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(1) 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:

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(1), 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 call 0800 313 4596 or log onto sainsburybank.co.uk  or pick up a leaflet in your Sainsbury’s supermarket.  Customers applying for a Sainsbury’s credit card should have their Nectar card ready when they apply.

From 25th April 2013 Sainsbury’s Bank’s existing Sainsbury’s Low Rate Credit Card will no longer be available to new customers.

FULL PRODUCT INFORMATION

The Sainsbury’s Low Rate Nectar Credit Card offers one of the lowest APR representative variable currently available on the market. It also offers customers the chance to collect up to five times the number of Nectar points normally earned on Sainsbury’s shopping in-store for the first three months (from the account opening), earning customers the equivalent of up to 5% back on their Sainsbury’s shopping (10 points per £1 spent; Nectar card must be swiped at the till at the same time). 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 you pay with your Sainsbury’s Nectar Credit Card, during the introductory reward period, you will collect 8 points on every full £1 of each separate fuel transaction, equivalent to 4% back on your transaction(4). In addition, when you swipe your Nectar card at the till, you earn 1 point per litre of fuel purchased(5).

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 also offers one of the lowest Representative APRs currently available on the market, at 7.8%. It also offers 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 could also receive a further £5 cashback each month when they spend at least £250 at Sainsbury’s and at least £250 at other outlets; this reward is on-going after the introductory period ends.

– Ends –

For further information, please contact:

Ian Morris / Tom Wilson / Phil Anderson

Citigate Dewe Rogerson

 

020 7282 1037/ 2842 / 1031   

Lorna Gilmour

0131 338 2863

Notes to Editors

(1)     Research commissioned by Sainsbury’s Bank on behalf of its credit card division and conducted by Andrew Hagger using MoneyComms data on 5-8th April 2013, comparing theUK credit card market.

(2)     During the introductory reward period, customers using their Sainsbury’s Nectar Credit Card in-store at Sainsbury’s earn 8 points per £1 spent (for the first 3 months from account opening) and 2 Nectar points per £1 spent when swiping their Nectar card at the till. Therefore, the combined introductory reward is 10 points earned per £1 spent (capped at £1,000 spend per month); this is the equivalent to 5% back on Sainsbury’s shopping. Points are not available on a limited range of Sainsbury’s goods and services. All cash advance transactions including foreign currency purchases, are not eligible for points. Nectar points are awarded by Sainsbury’s Supermarkets Limited and Sainsbury’s Bank plc. Nectar points may take up to six weeks to appear on customers’ account. More information is available at sainsburysbank.co.uk

(3)     During the post-introductory period, customers using their Sainsbury’s Nectar Credit Card in-store at Sainsbury’s earn 2 points per £1 spent and 2 Nectar points per £1 spent when swiping their Nectar card at the till. Therefore, the combined post-introductory reward is 4 points earned per £1 spent; this is equivalent to 2% back on Sainsbury’s shopping. Points are not available on a limited range of Sainsbury’s goods and services. All cash advance transactions including foreign currency purchases, are not eligible for points. Nectar points are awarded to customers by Sainsbury’s Supermarkets Limited and Sainsbury’s Bank plc. Nectar points may take up to six weeks to appear on customers’ accounts. More information is available at sainsburysbank.co.uk.

(4)     Post-introductory reward period, 2 points are earned per £1 spent; equivalent to 1% back on Sainsbury’s shopping.

(5)     Nectar points earned on Sainsbury’s fuel are awarded to customers by Sainsbury’s Supermarkets Limited.

(6)     For each of the first three months from account opening, customers receive a rebate of 5% of the value of all purchases at Sainsbury’s (once any purchases refunded in the period have been deducted) on their account. The rebates will be shown on the statement in the following month, up to a maximum of £50 per month.

(7)     For any statement period in which a customer: a) makes at least £250 of purchases at Sainsbury’s (once any purchases refunded in that period have been deducted); and b) makes at least £250 of purchases elsewhere (once any purchases refunded in that period have been deducted). Cashback is credited to the customer’s account in the following statement period.


Sainsbury’s Bank:

To view our latest press releases and product information, please visit the Sainsbury’s Bank online media centre at www.sainsburysbank.co.uk/media.

Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times.  Our products consistently top Best Buy tables and regularly win awards for quality, price and service.

In Q1, 2013, the Bank has been awarded ‘Personal Loan Provider of the Year’ – Consumer Moneyfacts, ‘Best Loan Provider’ – Money Supermarket Supers and ‘Best Credit Card for Rewards’ – Moneynet.

Sainsbury’s Bank Plc is a joint venture between J Sainsbury plc and Lloyds Banking Group.

Sainsbury’s Bank has its own banking licence, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514), except for Credit Cards and Loans where it is licensed by the Office of Fair Trading (OFT) license no. 421897. The Bank has an independent membership to the Financial Services Compensation Scheme.

For further information and general Sainsbury’s Bank enquiries customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysbank.co.uk