Sainsbury's Finance Launches Innovative New Gold Credit Card

LONDON, ENGLAND, September 09, 2010 (Press-News.org) Sainsbury's Finance today launched its revolutionary new credit card, promising to shake-up the current credit card market. The Sainsbury's Gold Credit Card has been designed with a range of attractive benefits for consumers when travelling and staying at home, and is the only one of its kind.

The card offers customers a low rate of 9.94% pa (variable)(1) on purchases and includes a number of features such as family travel insurance, no foreign exchange transaction fees, interest-free cash withdrawals (if the whole balance is paid in full and on time each month)(2) and no cash advance fees in the UK as well as abroad. It also does not carry a balance transfer fee. It also offers users double Nectar points on their Sainsbury's shopping in-store, online and in petrol filling stations.

The Sainsbury's Gold Credit card which carries a monthly fee of GBP5 could deliver a value far in excess of this cost at over GBP300 a year(3):

1. The family travel insurance policy, providing cover for two adults and up six children, alone is worth up to GBP250 approximately a year and is one of the best quality products available(4).
2. The Gold Card delivers savings on FX fees, cash withdrawal fees and interest on cash advances(2), a potential saving of, more than GBP16 based on a two week family holiday(5).
3. A generous reward scheme which rewards Sainsbury's shoppers with double Nectar points on their shopping in store, online and in petrol filling stations. For example, customers who spend GBP50 a week with Sainsbury's on their Gold Credit Card in conjunction with their Nectar card would receive a week's free shopping, GBP52 worth of Nectar points a year(6).

The card, aimed at providing benefits to card holders both at home and abroad, has been launched against a backdrop of rising interest rates in the credit card market. New research from Moneynet reveals that the average rate on purchases is now 16.85%(7). The Sainsbury's Gold card's rate of 9.94% pa (variable) on purchases and balance transfers is one of the best 3% of rates on the market. Even when the monthly fee is included in the APR, the typical rate is still only 18.0% APR variable, compared to an average typical APR for all cards, fee-paying or otherwise, of 18.13%. Typical APRs across the credit card market have increased by 152 percentage points in the last two years, and 79 points in the last year alone.

Further new research(8) from Sainsbury's Finance reveals that UK credit card holders withdraw GBP153 million a month from UK cash machines, but also withdraw GBP309 million from ATMs abroad on their average two week holiday, highlighting that UK consumers would benefit from free cash withdrawals at home and abroad.

Just 2% of credit cards on the market currently offer FX deals, while only 4% offer travel insurance. All those offering travel insurance are fee paying cards, some carrying fees far greater than the Gold Card's GBP5 fee(9). Analysis from Defaqto reveals that the Sainsbury's Gold Card travel insurance is one of the best quality products available. Only 8% of travel insurance policies on the market (not just those provided with credit cards), offer passport cover of up to GBP500, only 24% offer dental emergency treatment of up to GBP500 and only 19% provide Scheduled Airline Failure Cover (as standard) for up to GBP2,000 or above.

Stuart McKeggie, Head of Sainsbury's Credit Cards said: "Up until now cards aimed at travellers have been designed for use outside the UK, offering no benefit for those using them at home, therefore the Sainsbury's Gold Credit Card is the first to offer real benefits both home and abroad.

"It is excellent for travelling because there are no usage fees and it offers great travel insurance. It's excellent at home because of its competitive APR and double Nectar point rewards. Card holders could also benefit from the interest free period on cash withdrawals (if the balance is paid in full each month) when staying at home or travelling."

The Sainsbury's 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 2 per cent, when used in conjunction with a Nectar card, off their Sainsbury's shopping bill.

To find out more about the Sainsbury's Gold Card call 0800 030 4429 or log onto www.sainsburysfinance.co.uk or pick up a leaflet in your Sainsbury's supermarket. Customers applying for a Sainsbury's card will need to have their Nectar card ready when they apply.

Notes to editors:
(1) 9.94% pa variable on purchases and balance transfers - 18.0% APR typical variable which includes GBP5 monthly fee. Credit subject to status to UK residents aged 18 or over. Min repayment of 2.25% of the balance or GBP5, whichever is more, plus any amount over the credit limit.
(2) Assuming balance is paid in full and on time (46 days - interest rate reverts to 24.9% pa variable)
(3) Travel insurance policy worth up to GBP250, savings on fees and charges of GBP16, rewards worth GBP52 based on GBP50 spend in Sainsbury's each week (see below)
(4) Worldwide Travel insurance valued at up to GBP250 based on two adults and six children including travel to the USA, Personal Baggage, Winter Sports and Independent Traveller cover.
(5) According to Moneynet.com the average foreign exchange loading is 2.71%. On an average two week holiday credit card holders will withdraw an average of GBP74.94 from ATMS and spend an additional GBP511.18 on purchases on their card, according to ICM. This will result in an average total fee of GBP16 over two weeks (2.71% x GBP586.12).
(6) Week's free shopping earned by combining base points earned instore/online and offer bonus points for two years when you collect double Nectar points with selected finance products. For example, GBP49 per weekly spend over a year earned 10,912 Nectar points = GBP50 approx to redeem instore. Bonus Nectar points subject to a monthly maximum of 2,500 points per product type per month.
(7) Research conducted by Moneynet.com between 18th August and 1st September 2010
(8) ICM Research carried out during August 2010 amongst a GB representative survey of more than 2000 adults
(9) Research conducted by Defaqto in August 2010 looking at the entire travel insurance market

Sainsbury's Finance:
To view our latest press releases and product information, please visit the Sainsbury's Finance online media centre at www.sainsburysfinance.co.uk/media.

Sainsbury's was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury's Finance provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top Best Buy tables and regularly win awards for quality, price and service.

Sainsbury's Finance recent awards include Best Overall Online Provider, Best Direct Personal Loans Provider, Best Online Credit Card Provider, Best Online Life Insurance Provider at the Your Money Awards 2010.

Sainsbury's Finance is a joint venture between J.Sainsbury plc and Lloyds Banking Group.

For further information and general Sainsbury's Finance enquiries customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysfinance.co.uk.