How can you earn Nectar points? (Part 2 – financial)

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How do Nectar points work?

With the announcement of the new Avios and Nectar points transfer partnership, which goes live on Monday, I thought it was worth doing introductory pieces on the Nectar loyalty scheme for those who are not familiar with it.

There are two articles on how to earn Nectar points. This one looks at credit card and other financial partners. The first part, click here, looks at how to earn Nectar points from traditional in-store shopping partners.

What is a Nectar point worth?

Here is a reminder of what a Nectar point is worth, because you need to know this to put the ‘earn and burn’ sections in context.

A Nectar point is worth 0.5p, in virtually all cases.

Since Avios transfer to Nectar at a rate of 1 to 1.6, Avios points now have a floor value of (0.5p x 1.6) 0.8p.

Where can I earn Nectar points?

American Express – the dedicated Nectar card

American Express issues its own Nectar American Express credit card.

Here are the headline details:

Nectar American Express

Bonus: 20,000 points

Read our full review • Apply here

Other information:

From January 2021, you can convert Nectar points into Avios (and vice versa)
Annual fee: Free for the first year, £25 from Year 2

Representative 29.8% APR variable. Annual fee applies after the first year.

Apply here

See if you qualify for the 20,000 points sign-up bonus +

You will receive 20,000 Nectar points as a sign-up bonus on the Nectar American Express credit card if you spend £2,000 within 90 days of signing up.

Nectar points are worth 0.5p each if spent in Sainsbury’s, Argos or eBay. From January 2021 they can also be converted to Avios at the rate of 400 : 250. 1 Nectar point gets you 0.625 Avios.

To qualify for the bonus, you must NOT, currently or in the previous 24 months, have held any other personal American Express card.

You are OK if you had a supplementary card on someone else’s American Express account.

You are OK if, currently or in the previous 24 months, you have held a Business American Express card.

For clarity, you can still apply for the Nectar American Express card even if you do not qualify for the bonus. You would still benefit from the ‘no fee in Year 1’ offer.

Learn more about the card benefits +

The Nectar American Express credit card comes lets you earn 2 Nectar points for every £1 you spend. This is on top of any Nectar points you would usually earn at Sainsbury’s and other Nectar partners.

Converted to Avios, you would be earning 1.25 Avios per £1. This makes the card better value than the free British Airways American Express credit card for your first year, as the Nectar American Express is ‘fee free’ for the first 12 months. There is a £25 annual fee from Year 2.

The sign-up bonus of 20,000 Nectar points is worth £100 to spend in Sainsbury’s, Argos or eBay.

20,000 Nectar points can also be converted into 12,500 Avios.

For the first year, with no annual fee and 2 Nectar points (1.25 Avios) earned per £1 spent, this is not a bad product. It becomes harder to justify the £25 fee from Year 2.

You will not receive the sign-up bonus if you have had any other personal American Express card in the last 24 months. This is a shame as the 20,000 Nectar points bonus transfers into 12,500 Avios.

You can apply for the Amex Nectar card here.

American Express – via Membership Rewards points transfers

You can transfer American Express Membership Rewards points into Nectar points at the rate of 1 to 1.

American Express cards which issue Membership Rewards points include:

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

American Express Rewards

The only ‘free for life’ Amex card which earns Membership Rewards Read our full review

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

With the launch of the Avios partnership, it no longer makes sense to transfer Membership Rewards points to Nectar at 1 to 1.

Instead, you should transfer your Membership Rewards points to Avios at 1:1 and then on to Nectar at 1:1.6. You receive 60% more Nectar points.

You will effectively get 0.8p of Nectar points for every 1 Membership Rewards point via this route.

There is one occasion when you may want to transfer directly to Nectar. Amex transfers to Avios must be done as a minimum of 1,000 Membership Rewards points and then in blocks of 500. Transfers to Nectar can be done for any amount.

If you are closing a Membership Rewards account, transferring your last few points to Nectar is the best way of getting your points down to zero.

Sainsbury’s Bank – credit cards

Sainsbury’s Bank issues its own range of credit cards. These are Mastercard products and are useful where American Express is not accepted.

There is a range of cards, each with different features – low balance transfer fees, 0% interest on purchases etc.

The cards are all free. The earning rate from ongoing spend is very weak, however, at 1 Nectar point per £5 spent.

Spending at Sainsbury’s and Argos earns at a far higher rate of 2 Nectar points per £1. The credit card website implies you receive 3 points per £1 but this includes the standard 1 point per £1 you receive in Sainsbury’s irrespective of how you pay.

The best offer, from a points perspective, is the Nectar Credit Card. It offers a sign-up bonus of 10,000 Nectar points if you spend £400 at Sainsbury’s, Argos or Tu Clothing within two months of acceptance.

Sainsbury’s Bank – insurance

Sainsbury’s Bank offers regular sign-up offers of bonus points on selected insurance products.

There are also ongoing benefits depending on product. This includes double base points on all your Sainsbury’s shopping.

These offers may be personal to you, in which case you will only see them promoted via the Nectar app or may be available to all via the website.

Sainsbury’s Bank – loans

These offers may be personal to you, in which case you will only see them promoted via the Nectar app or may be available to all via the website.

Conclusion

As you can see, there are numerous opportunities to earn Nectar points – and therefore Avios – via financial partnerships.

We will keep you informed of the best ‘open to all’ sign-up offers via Head for Points.

How to earn Avios points from UK credit cards

How to earn Avios from UK credit cards (December 2021)

As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways BA Amex American Express card

British Airways American Express

5,000 Avios for signing up, no annual fee and an Economy 2-4-1 voucher for spending ….. Read our full review

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable credit card perk – the 2-4-1 companion voucher Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points, such as:

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & two airport lounge passes Read our full review

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Run your own business?

We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios:

Capital On Tap Business Rewards Visa

The most generous Avios Visa or Mastercard for a limited company Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus: