Follow this topicThe top loyalty schemes for shoppers
Which shops offer the best loyalty card schemes and how much can you earn?
Most retailers offer some sort of loyalty scheme to shoppers and here we look at some of the best around and and explore which provide the most value for money.
1. Amazon
Amazon is one of the most popular online retailers, but should the Amazon.co.uk Mastercard be a hit with shoppers too?
What benefits do you get?
- You get £5 when your credit card application is approved
- It's good if you're planning any big purchases as you'll also have 0% on purchases of individual items of more than £300 for the first 13 months. However, these purchases must be made within the first 30 days of opening the account
- You’ll earn two loyalty points for every £1 spent at Amazon and one point for every £1 spent elsewhere.
- Once you have earned 1,000 points you’ll receive a £10 Amazon gift certificate.
Our verdict: As a team we spend a lot of time shopping on Amazon so a card which pays you to do so seems like a good option. The cashack rate is 1% with this card and although the deal itself isn't anything special, the extra £5 earned on your first purchase is an added bonus. It’s also handy that you can earn points by spending at other retailers but remember you’ll need to spend £1,000 before you receive any rewards.
2. Boots
The ubiquitous high street pharmacy offers the Advantage card which you can use to buy items in store.
What benefits do you get?
- You’ll earn four points for every £1 spent in store and at Boots.com.
- Each point is worth one penny.
- You can also earn four points for every £1 spent at Boots Opticians.
- And you can take advantage of extra benefits such as ‘double points’ promotions. You also get access to benefits like the Boots 'Treat Street' which gives you discounts on a range of retailers and you'll get £2.50 worth of points when you place your first order.
- Points can be used to purchase items in Boots branches or online
- Points cannot be spent on prescription items, infant milk (up to six months), gift vouchers/cards, postage stamps, mobile phone top-up cards, travel services and Boots Insurance.
Our verdict: Boots offers the most generous scheme of the lot at four points per £1. This means it's easy to build up points and there's also frequent promotions to boost the number you have. Some items are excluded as you can't use your points to buy anything from brands such as Boots Opticians or Boots Insurance. It's a good card but will only benefit you if you use Boots on a regular basis for your shopping.
3. John Lewis
John Lewis is a frequent favourite among lovemoney.com readers and writers, but is its Partnership Mastercard up to scratch?
What benefits do you get?
- You’ll earn one point per £1 spent at John Lewis, JohnLewis.com, Waitrose, Waitrose.com and Greenbee.com and one point per £2 you spend everywhere else.
- Every 500 points you earn is worth £5 in John Lewis vouchers.
- No interest on purchases for the first six months, from the account opening
- As a cardholder you’ll also be entitled to special offers such as 10% off John Lewis car insurance and you’ll be invited to special partnership cardholder events.
Our verdict: This scheme is similar to Amazon’s which also has a 1% cashback rate. The main difference is that points can only be earned on purchases made at a handful of John Lewis Partnership retailers. However, if you're a dedicated John Lewis fan you'll collect points quickly and there are often promotional deals which will help add up to extra savings. It's also got the extra benefit of 0% on purchases for the first six months of opening.
4. Sainsbury’s
Sainsbury’s participates in the massive Nectar card loyalty scheme.
What benefits do you get?
- Grocery shopping at Sainsbury’s will allow you to collect two points per £1 spent.
- 500 Nectar points are worth £2.50 for spending in store.
- You'll also get one point for every bag you reuse and one point per litre of fuel purchased at Sainsbury’s fuel stations.
- You can spend straight from your card at Sainsbury’s, both in store or online, or use it to buy treats such as hotels, holidays or days out at Nectar.com.
Our verdict: Although you’ll earn two points per £1 at Sainsbury’s, rather than one point per £1 offered by many other retailers, the points are only worth half a penny which means although the scheme may appear better, it's actually no more or less generous than Amazon or John Lewis. However, the bonus of this card is that Nectar cards can be used at a wide range of retailers, such as Homebase and British Gas, allowing you to maximise your points on more of your spending.
5. Tesco
Tesco shoppers can use the Tesco Clubcard to earn loyalty points.
What benefits do you get?
- You’ll collect one point per £1 spent in store, online and at Tesco Direct.
- When purchasing Tesco fuel you'll also get one point for every £2 spent.
- Every 150 Clubcard points you earn is worth £1.50 in Clubcard vouchers.
- Every £5 in Clubcard vouchers is worth £20 in Reward Tokens which can be used to purchase a range of treats from brands such as Pizza Express, Avios, Hilton and Goldsmiths.
Our verdict: This scheme is better than most and you can also multiply your points when you spend them at certain retailers. If you have a Tesco credit card, you're also able to earn more points and a full list of where you can pick them up can be found on the website.
6.Superdrug
The high street beauty chain has recently launched its 'Beauty card'
What benefits do you get?
- You earn one point for every £1 spend both online and in a branch
- Every 100 points is equal to £1 in store
- You can use your points as part-payment when buying an item
- There are lots of bonus promotions on offer, such as earning an extra 100 bonus points when you spend £10 or more on Elvive products
Our verdict: The Superdrug card is pretty much identical to Boot’s Advantage card but offers less cashback when you spend in store or online. It makes sense to have one if you shop at Superdrug regularly and keep an eye on the bonus promotions to rack up more points. It’s also good because you can pay with a mixture of points and cash so you don’t need to wait until you’ve collected a certain number before you start spending.
7. Waterstones
The Waterstones card gives you the chance to earn a decent number of points while you shop for books
What benefits do you get?
- Earn three points for every £1 you spend – each point is worth 1p.
- Earn and redeem online or in a shop
- Earn five points every time you don’t take a plastic bag
- There are decent points promotions, for example right now you can get 300 bonus points if you buy four Waterstones Book Club titles before 4th November.
Our verdict:This card offers one of the highest rates of cashback around, although any points you collect will only be valid on products within the Waterstones range. There are lots of promotional deals to boost the number of points you have and your card can also be used for discounts at a host of different venues including the Natural History Museum.
8. The Co-operative
When you become a member of the Co-op you join a collective and get a say not only in how the company is run but also a claim to its profits.
What benefits do you get?
- Earn one point for every £1 spend on food, in the pharmacy, and on electricals
- You can earn points at any Co-op brand when spending on items such as travel, fuel and insurance
- Points earned are sent out twice through the year and you can either take these as cash or donate them to your local Co-op community fund
- Ongoing promotions for more points, including 1,000 for joining Co-op Energy.
Our verdict: As the Co-op is my local convenience store, it makes total sense to have this card. Most items have a 1% cashback rate but you also need to pay out £1 to join (taken off your first share of profits). If you cancel the membership the £1 will be returned. It's a great idea because you also have the option of donating the money earned to a local community project.
Are cashback credit cards better?
Cashback credit cards are generally seen as a better alternative to schemes which offer loyalty points or rewards. This is because you have the freedom to spend your cashback wherever you like without any limitations, while earning cashback on all your purchases.
What’s more, the highest cashback rates tend to beat the equivalent value of most loyalty points. After all, one of the market-leading cashback cards – the American Express Platinum Cashback card – offers a whopping 5% cashback rate in the first three months (up to a maximum of £100) with up to 1.25% paid after that depending on how much you spend on the card.
However, cashback cards should only be used as a way to earn rewards as these often have a higher APR than most standard credit cards. To use them efficiently you should spend as normal, on your cashback card, and then pay this off at the end of each month. This means you'll get all the rewards of the card but you won't have to pay any interest.
If you won't remember to pay the card off each month then set up a direct debit to do this automatically from your current account.
Our comparison tables give a full run down of the cashback and reward credit cards but here I've picked out five of the best.
The top five cashback credit cards
|
Card |
Cashback amounts |
Average APR |
Notes |
| Barclaycard Cashback | 6% cashback in the first three months, 2% thereafter. | 19.9% | Annual fee of £24 |
|
5% for three months (up to 1.25% after). |
18.5% |
Annual fee of £25, £20,000 salary required. |
|
|
5% for three months (max of £100). Up to 1.25% available afterwards. |
19.9% |
Minimum income of £20,000 required |
|
|
3% on petrol (max of £9 a month), 2% in shops, 1% in supermarkets |
22.8% |
Annual fee of £25 a year |
|
|
3% |
34.9% |
Maximum of £100 cashback each year. |
|
|
£5 per month per £300 spend |
12.9% |
You need to be a Halifax customer to open a credit card |
Many of the top cashback credit cards are only available to people with a squeaky clean credit history and you'll need to learn at least £20,000 for most of them. The Boots and Tesco schemes offer far more generous equivalent rates - albeit on a limited range of purchases - without the need to apply for a credit card and with no minimum spend required.
Meanwhile other schemes, particularly the Nectar card, will give you lots of opportunities to earn extra points which could be even better than the best cashback rates.
Do you use loyalty schemes and which one do you think offers the best value for money? Let us know in the box below.
More on shopping:
How to save money on your food shopping
Slash your supermarket delivery costs
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