Supermarkets front of the queue for great rates
Some of our biggest supermarkets are offering tasty deals on everything from credit cards to loans to mortgages.
You might use one of the major supermarket chains to do your weekly shopping, buy clothes or fill up with fuel. You might have a phone or broadband contract with them. But did you know they’re topping some of the best buy tables for financial products right now?
Let’s take a look at what’s on offer.
A credit card for spreading the cost of a purchase
If you’re looking to spread the cost of a purchase, Tesco is the undisputed market leader. Its Clubcard for Purchases card offers an interest-free period of 18 months, plus Clubcard points on all your spending. Make sure you’ve paid off your spending or are ready to switch to a 0% balance transfer deal though or you’ll be charged interest.
Compare 0% purchase credit cards
Credit cards for paying off credit card debts
If you have some credit card debts you want to pay off, Tesco also offers two of the top options right now, depending on how long you need. Its Clubcard for Balance Transfers card will allow you to pay no interest on your debt for 27 months. That’s the joint longest period on the market right now along with Barclaycard’s Platinum 27-Month card. The Barclaycard has a slightly lower balance transfer (this charge is a percentage of the debt you’re transferring) of 2.99%, compared to Tesco’s 3.15%.
If you reckon you can pay off your debts in less time, Tesco is the cheapest option, thanks to its 0.9% balance transfer fee on its Clubcard with Low Balance Transfer Fee card. This card offers a year with no interest to pay on your debts. If you’re happy to pay just a fraction more, 0.1% to be precise, then the Halifax All In One and Lloyds TSB Platinum 15-Month credit cards offer 15 months interest free with 1% fees.
Cashback and reward cards
If you shop regularly at Tesco, Asda, Sainsbury’s or Waitrose, you might want to take a look at their cashback and reward cards.
The Tesco Clubcard for Purchases credit card pays five Clubcard points for every £4 you spend in Tesco stores and its petrol stations. You also earn one point for every £4 you spend elsewhere.
Meanwhile, the Asda Money credit card pays 1% cashback on your Asda shopping and fuel spending, and 0.5% cashback everywhere else. But if you put most things on your credit card each month, you might be better off with the American Express Platinum Cashback Everyday or Santander 123 (which charges an annual fee unless you’re a Santander current account customer) cards.
If you prefer Sainsbury’s, its Cashback Low Rate card pays 5% cashback on your Sainsbury’s shopping, up a to a limit of £50 a month, for the first three months you have the card. But if you don’t spend that much on your food, you might want to look at another, less restrictive cashback card.
If you collect Nectar points, the Nectar Low Rate card pays 10 points per £1 spent on Sainsbury’s shopping for the first three months, up to a maximum spend of £1,000. So you can earn up to 10,000 points. After that, you earn four Nectar points for every £1 you spend on Sainsbury’s shopping and one point for every £5 you spend elsewhere.
Finally, the John Lewis Partnership card pays one point for every £1 you spend at Waitrose, Waitrose.com, John Lewis and JohnLewis.com. For every 500 points you earn you’ll be sent a £5 John Lewis/Waitrose voucher.
Compare our top cashback credit cards
Personal loans
If you want to borrow between £7,500 and £15,000, can repay it within three years and have a good credit rating, Sainsbury’s Bank is now in second position in the best buy table with a representative APR of 4.9%. Under law, this rate will be offered to a minimum of 51% of successful applicants.
If you tick all the boxes above though, you could borrow even more cheaply through peer-to-peer website Zopa, which matches people who want to lend with people who want to borrow. Its rate is 4.8%.
If you want to repay over between three and five years, then Sainsbury’s and Tesco both offer a representative APR of 5.1%, just below the market-leading Zopa at 4.9% and Derbyshire Building Society at 5%.
Compare our top personal loans
Mortgages
If you’re in the market for a new mortgage, Tesco is currently offering a two-year fixed rate of 1.74% for people who need to borrow 60% or less of their home’s value. This mortgage has fees of £1,495, which beats NatWest’s fees on its otherwise identical 1.74% mortgage.
If you want a longer fix, Tesco has a five-year fixed rate with an initial rate of between 2.49% and 3.69%, depending on how much you need to borrow. They again come with fees of £1,495. These also compare very favourably with what else is around at the moment.
More on supermarkets
Sainsbury’s to launch mobile phone service with Vodafone
Nectar launches Double Value Exchange programme
Tesco launches Clubcard Perks loyalty scheme
Aldi vs Tesco vs Waitrose: which supermarket wins on price and taste?
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Comments
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I worked in the heart of retail and retail distribution for ten years, and the dirty tricks used by the supermarkets and their distribution partners is nothing short of despicable. One major forecourt service employed our company to supply sandwiches, of which about 70% are destroyed. That is why a sandwich from a forecourt is so expensive, to cover the cost of the waste. During the average day, something in the region of 15 industrial bins are filled with wasted sandwiches. Don't forget that this isn't just bread, but the poultry and other meats butchered for this waste, along with the electricity to run the machines that make the sandwiches. Don't believe the label, 'Hand Made', because they aren't. Premier Foods is an excellent example of a supplier squeezed by Tescos. Even Johnson and Johnson have been bullied by the big four, and they are a global name. In an equal world, we can all make a profit. Capitalism should mean that each leg of the supply chain can charge a reasonable profit. Unfortunately, this is not an equal world, and we are seeing big companies paying little or nothing for their supplies, while charging as much as the market will tolerate. These companies are not only profiting from supplying, but pushing their suppliers at the other end. Remember that the big four have a monopoly in the UK. There might be other alternatives, but they are small fry in comparison. If the big four do not wish to stock a product line, that will usually mean the end of this line. I have seen suppliers go bust because of this tactic. Basically, the big four want to maximise their profits by buying cheaply, and will teach any supplier a lesson if they do not comply with the wishes of those in power. I am glad that I finally left retail and retail distribution. It was a rat race for ten years. People being screwed for something so simple as profit. Money isn't evil, but the reckless race to acquire it can make some members of the human race evil to the point that they feel compelled to cheat others, without remorse.
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@electricblue " Many people go into business to share a passion for a product or service which they feel they can offer in a better way than their competitors " I am sure that there was some truth in this when Mr Rolls met Mr Royce, or Mr Stephenson conducted his steam train trials, at Rainhill, but we live in a different age, and, with a few notable exceptions, such as Michael Eavis, the VAST majority of entrepreneurs go into business to make money, irrespective of country. To argue otherwise seems naïve to me.
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@centrum46 'Old time' grocery store owners ripped off the locals and were the richest business people in their villages, so take off the rosy tinted spectacles. In the 60's and 70's I well recall the nice shiny new cars the local shopkeepers could afford. The suggestion that being an 'American' idea indicates that greed is the only function driving business is an absolute insult to Americans and an obnoxious and naive comment from someone who clearly has no understanding of either business or American culture. Many people go into business to share a passion for a product or service which they feel they can offer in a better way than their competitors and those who succeed can make money or even become rich. I'm more concerned at the ethics of creating jobs, in the UK where possible, and looking after employees.
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24 July 2013