The best loyalty scheme in the UK!

This loyalty scheme is now officially the most popular around, and if you use it properly you can get everything from a free telly to free holidays with it!

I love a good loyalty card.

I spend far more time than I should in Tesco, so it's only right that I get some form of reward for the amount I spend in there. However, as of last week the Tesco Clubcard relinquished its spot as the number one loyalty card in the UK.

Nectar is number one

It was replaced by the Nectar card scheme, which of course boasts Tesco's biggest rival Sainsbury's as a major partner.

According to the latest figures, a whopping 18.6 million of us have a Nectar card - I know I do. It has also enjoyed pretty spectacular growth over the past twelve months, adding one million new users.

A panel of partners

The model of a loyalty card is very simple - it rewards you everytime you spend money in a particular shop, with points for every pound you fork out.

One of the reasons Nectar has proved so popular is that it has a wide range of retail partners that will offer you a reward on your spending. While with Tesco you can only collect points in that supermarket, with Nectar there are all sorts of places - 14 partners in total, representing over 400 websites.

And those partners really do encompass a range of services, from Homebase to Amazon to EDF Energy to Expedia. Whatever you need to buy, chances are you'll be able to nab some Nectar points in the process.

Those points can then be exchanged for all sorts of brilliant rewards, from days out to hotel rooms to simple goods like a new TV.

These are my favourite deals:

Easy to double your points!

What's more, there are quite a few easy ways to substantially increase the number of points you get on your spending

• Watch the video: Top three ways to boost your Nectar points!

However, possibly the easiest way to get a cracking return on your spending and get together a stack of Nectar points is to take advantage of the Sainsbury's Finance double points promotion. All you have to do is sign up for one of Sainsbury's financial products.

How the promotion works

The idea of the scheme is very simple, and it can offer an unbelievable return.

So long as you take out a financial product from Sainsbury's - in other words, a credit card, savings account , loan, pet insurance or home insurance - then you will enjoy double Nectar points on all of your grocery and fuel shopping at the supermarket for a massive two years!

Even better, if you have two new products from Sainsbury's, your points are trebled, and so on.

But the big question is - are they worth having?

Sainsbury's Credit Card

The Sainsbury's credit card is currently the best all-round credit card on the market, in that it offers a cracking 10 months of 0% interest on both purchases and balance transfers, which in itself is a quite tremendous deal.

It gets even better if you do your shopping in the supermarket - purchases at Sainsbury's with the Sainsbury's credit card enjoy 0% interest for an additional two months! (remember though that this then exposes you to negative order of payment)

Use the card in Sainsbury's and you'll get two points for every pound you spend, while you'll get a point for every £5 you spend outside of the supermarket.

All in all I reckon it's a terrific card, the market-leader in its field, so coupled with the Nectar point promotion it looks an outstanding option.

• For more on the credit card, watch this video

Sainsbury's loan

It's not just the credit card where Sainsbury's offers a truly eye-catching deal - its loan is superb as well, at a rate of just 7.9% APR. The eagle-eyed among you will be aware that the Sainsbury's loan is not quite the lowest rate around - Nationwide offer loans at a typical rate of 7.6%.

However, the big difference is that the Nationwide loan is only available to existing customers, as is the Alliance & Leicester loan, at a typical rate of 7.9%.

These deals are fantastic if you already have a credit card or savings deal with either of these lenders, but a fair few of us don't. If you're not an existing customer of Nationwide, Sainsbury's is your next best bet - and all you need to get your hands on the Sainsbury's loan is the Nectar card!

Sainsbury's Easysaver

While I really like both the credit card and loan from Sainsbury's, I'm not a fan of the Sainsbury's Easysaver savings account at all.

To qualify for the double Nectar point offer you have to deposit at least £5,000 in the account, and maintain that level for two years. However, you get the mediocre rate of 2.5% on your money - and that's only for the first year! In year two it will drop to a rubbish 0.5%.

You are also limited to five withdrawals per year, which goes a little against the idea of an easy access account. It's really not worth getting this account just for the sake of the double point offer.

• Follow the hints and tips in the goal: Build up your savings

Insurance

As with all individual insurance products, whether Sainsbury's products are right for you all depends on your circumstances. I'd recommend having a go on lovemoney.com's marvellous quote engine to see how Sainsbury's compares.

Overall, it's easy to see why the Nectar card is the UK's favourite loyalty card, and you can really ramp up your points by taking out the right financial product. Just be sure that it is a product that you need and will use!

More: Brilliant booze bargains! | Great credit cards for frequent flyers