How do Sainsbury's Bank's credit cards measure up?Supermarket launches market-leading balance transfer card

27 May 2014

woman withdraws money from sainsbury's bank cashpoint

Sainsbury's Bank launched two 0% balance transfer credit cards this week, including one with a market-leading balance transfer fee.

The Sainsbury’s Nectar Low BT Fee Credit Card charges a fee of just 0.5% on balance transfers and no interest on these for 12 months. 

Meanwhile, the Sainsbury’s Nectar Balance Transfer Credit Card includes a 29-month interest-free period on balance transfers, with a transfer fee of 2.89%.

How do they compare?

Balance transfer fees

The 0.5% balance transfer fee offered by the Sainsbury’s Nectar Low BT Fee Credit Card is currently the lowest on the market. The card also offers 0% interest on balance transfers and purchases for 12 months. It should therefore be attractive to those with large credit card debts, if they are able to fully pay them off in a year or less.   

Those who need more time might be better off paying a larger fee to transfer their debts onto a card with a longer 0% period.

At 29 months, the Sainsbury’s Nectar Balance Transfer Credit Card offers one of the longest 0% balance transfer periods, but there are cards that have the same 2.89% balance transfer fee which go even longer without charging interest. This card does also offer 0% interest on purchases for six months though.

Which? Comparison Table - Best 0% balance transfer credit cards - our tables are updated in real-time.

Rewards

There aren't many credit cards which boast 0% introductory periods on balance transfers and purchases, while also including a reward scheme for customers to take advantage of.

However, both new Sainsbury's credit cards do just that - as customers can earn Nectar points every time they use them. 

They will earn double Nectar points on their Sainsbury's shop, an additional two Nectar points for every £1 they spend on fuel at Sainsbury's filling stations and one Nectar point for every £5 spent elsewhere.

Which? Comparison Table - Best credit cards for retailer rewards - our tables are updated in real-time.

Everyday spending

The APR on these new products shoots up to 18.9% once the introductory periods are finished.

Those looking to pay a consistently low interest rate on their spending will be better off applying for one of Sainsbury's existing credit cards - the Nectar Low Rate MasterCard - which has a representative APR of just 6.9%.

Which? Comparison Table - Best credit cards for everyday spending - our tables are updated in real-time.

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