Sainsbury’s launches credit card with benefits (and fees)
Card tempts users with range of offers for a price
Sainsbury’s Finance has launched the Gold Credit Card, which its claims will shake-up the current UK credit card market.
The card carries a monthly fee of £5, but has been designed with a range of attractive benefits for consumers when travelling and staying at home.
It will be interesting to see whether these benefits will be enough to tempt people, given the £60 annual cost of holding the card. It is likely to appeal to people with families who regularly travel abroad.
It does not carry a balance transfer fee, and offers users double Nectar points on their Sainsbury’s shopping in-store, online and in petrol filling stations.
The card offers customers a relatively low rate of 9.94% on purchases and includes a number of features such as family travel insurance, no foreign exchange transaction fees for ATM withdrawals or retail purchases, interest-free cash withdrawals (if the whole balance is paid in full and on time each month) and no cash advance fees in the UK as well as abroad.
It offers free family travel insurance that provides cover for two adults and up to six children. The Marks & Spencer Premium Club MasterCard, which costs £190 a month, also offers free family travel insurance.
The Gold Card is the latest Sainsbury’s Finance product to offer double Nectar points on customers’ shopping, in store, online and in petrol filling stations. The extra Nectar points are equivalent to an additional 2T, when used in conjunction with a Nectar card, off their Sainsbury’s shopping bill.
Card that charge fees for holding them seem to be gaining more traction. Products currently on the market include the American Express by invitation-only Centurion card, which costs £1,800 a year.
NatWest issues the Black card available to people with an income of over £75,000 a year who are willing to pay a £250 annual fee.