Saturday, 15 November 2014

Tesco Clubcard Vs Nectar Card

Points, points, points. The big question is how do I get them? and what are they worth? All these loyalty cards have different ways of allowing you money back from your shopping and I hope to outline the differences between the two most popular schemes Tesco Clubcard and the Sainsbury's Nectar Card. 

Tesco Clubcard
This one starts simply - 1 point for £1 spent at Tesco (instore or online). 1 point equals 1p off a future shopping bill, so this a pretty straight forward 1% voucher. 

However on top of this is Clubcard fuel save where you get 2p off per litre of fuel for each additional £50 you spend at Tesco within a month (up to a maximum of 20p off per litre). 

Adding these up gets complicated, so imagine you spend £350 at Tesco on groceries in a month and you fill up your car with 35 litres of fuel. You will get back £3.50 in Tesco vouchers plus £4.90 off your fuel bill. So in total you are getting £8.40 back from your £350 spend which is 2.4%. That's pretty good. 

Sainsbury's Nectar Card
Currently at Sainsbury's spending £1 gets you 2 Nectar points. However in April 2015 they are halving this to only 1 point. 

At Nectar 2 points are worth 1p. Therefore under the current rules If you spend £350 in Sainsbury's in a given month you get 700 points, which equals £3.50 (1% of total shop). After April 2015 you will get £1.75 (0.5% of total shop).

It is obvious from this that the Tesco Clubcard has better rewards than the Nectar Card, however the Nectar card is accepted in many more retailers than the Clubcard, so you do not have to be loyal to Sainsbury's to benefit. If you do shop at Tesco every week it is definitely worth getting the Clubcard, but remember don't change your shopping habits to suit the card, even if you minus the 2.4% that Clubcard can potentially give you back Aldi, Lidl or Asda may still be better value on many items. 

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