Sainsbury’s Bank Enhances Its Credit Card Offers To Create Its Most Competitive Suite Ever

16 August 2016

Sainsbury’s Bank has enhanced the offer on two of its credit cards; it now offers the lowest balance transfer (BT) fee of a credit card with an interest-free period of 40 months or more(1). The bank is now also one of just nine cards on the market to offer a credit card with no BT fee and interest-free balance transfers for more than 20 months.

Both cards also offer a Nectar reward scheme when some credit card providers are reducing the level of their rewards or removing them completely.

Sainsbury’s Bank’s two new competitive credit card offers are available to new customers from Tuesday 16th August 2016:

  • The Sainsbury’s Bank Long Balance Transfer Credit Card(2) offers 0% APR on balance transfers for 40 months, with a BT fee of 2.42% (offer ends 27th September 2016, customers must have a Nectar card when applying to benefit from the reduced fee(3)). The reduced fee applies on transfers made within the first three months and is made via a refund. The fee is 2.89% for the first three months for those who do not have a Nectar card. After the first three months the fee for all customers is 3% (minimum £3 at all times). Previously, its interest-free period was 39 months, and the introductory fee was 2.89%.
  • The Sainsbury’s Bank No BT Fee Credit Card(2) now offers an interest-free period on balance transfers of 22 months (up from 18 months) with no fee. No BT fee applies on transfers made within the first three months; 3% fee applies afterwards (minimum £3 at all times).

Both cards offer 0% APR on purchases for three months(2) and reward customers with 5,000 bonus Nectar points when they spend £800 on their Sainsbury’s Bank credit card on shopping and fuel at Sainsbury’s during the first three months (offer ends 27th September 2016)(4). Customers also collect two points for every £1 spent at Sainsbury’s, including online, instore and at petrol stations and they also collect 1 point from Sainsbury’s for every £1 spent and 1 point for every litre of fuel(5).

Independent research(1) from Andrew Hagger at MoneyComms reveals that out of more than 140 mainstream credit cards on the market, only six offer an interest free period of 40 months or more on balance transfers.  The average BT fee of these six cards is 2.91%.

Also, looking at the entire market, just 12 credit cards offer 0% APR on balance transfers with no BT fee, and their average interest free period is 16.3 months.

Jerome Fernandez, Head of Credit Cards at Sainsbury’s Bank said: “Our suite of credit cards has never been more competitive.  We now have the longest interest-free periods on balance transfers and purchases that we have ever offered, with our most competitive BT fees and we reward our customers every time they use their card.”

Jerome added: “When applying for credit cards, people may not realise that the zero per cent introductory deals advertised aren’t always offered to successful applicants. If you’re successful when applying for a credit card with us you’ll receive the full advertised 0% promotional period, but some providers may offer fewer months so it’s worth checking this before applying.”

-Ends-

This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.

Notes to Editors

  1. MoneyComms research was completed on 4th August 2016.  This was commissioned by Sainsbury’s Bank.
  2. Representative example

Purchase rate is

 

With a representative Assumed credit limit
18.95% p.a. variable 18.9% APR variable

£1,200

Customers’ interest rate and credit limit will vary depending on their individual circumstances. To keep their promotional rate, customers must pay at least the minimum payment by the due date and stay within their credit limit.

  1. Offer available to new customers with a Nectar card who apply and take out a Sainsbury’s Bank Long Balance Transfer Nectar Credit Card between 16th August 2016 and 27th September 2016. The offer applies to balance transfers that are made within 3 months of account opening. Account will be opened within 2 working days of us receiving the customer’s signed agreement. The balance transfer fee charged is 2.42% of the balance transfer amount. This is achieved by charging an initial balance transfer fee of 2.89%. Sainsbury’s Bank will refund 0.47% directly to the customer’s account so the overall fee is 2.47%. This refund will be processed within 60 days of the balance transfer being made. The refund will appear on the customer’s statement. Customers must make sure they tell us their Nectar card number when they apply to ensure they receive the offer. Sainsbury’s Bank reserves the right to terminate this balance transfer offer at any time. Details of our latest balance transfer offers at www.sainsburysbank.co.uk.
  2. Offer available to new customers only who apply and take out a Sainsbury’s Bank Nectar Credit Card between 25th May and 27th September 2016. Spend £800 or more on Sainsbury’s shopping or fuel with their Sainsbury’s Bank credit card during the first 3 months from account opening and be rewarded with 5,000 bonus Nectar points. Excludes Sainsbury’s Telecoms, Energy and Travel Money, which will be treated as non-Sainsbury’s purchases. Please allow up to 60 days from your credit card statement date for points to be credited to your Nectar account. If a transaction is refunded to the customer’s account we may remove the 5,000 Nectar points if they no longer have qualifying transactions totalling over £800. Sainsbury’s Bank reserves the right to alter or terminate the offer at any time.
  3. 2 Nectar points are collected on each full £1 of each separate shopping and fuel transaction at Sainsbury’s. Excludes Sainsbury’s Telecoms and Energy, which will be treated as non-Sainsbury’s purchases. For non-Sainsbury’s purchases 1 Nectar point is earned on each full £5 of each separate transaction. Travel Money purchases are not eligible for points. Nectar points are awarded to you by Sainsbury’s Supermarkets Ltd and Sainsbury’s Bank plc, who reserve the right to alter or terminate the offer at any time. Please allow up to 60 days from your credit card statement date for points to be credited to your Nectar account. The Nectar loyalty programme is operated independently of Sainsbury’s Bank by Aimia Coalition Loyalty UK Ltd, and the collection and use of points is governed by the Nectar Collector Rules, which are set out in the registration pack and are also available at nectar.com.

 

Further background

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.

Sainsbury’s Bank plc. Registered Office, 33 Holborn, London EC1N 2HT (registered in England and Wales, no 3279730) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514). Sainsbury’s Bank plc is covered by the Financial Services Compensation Scheme (FSCS).