The best loyalty schemes in the UK

Which loyalty schemes are actually worth joining - and what do you get for your points?

This article is out of date. For the latest version, please read The top loyalty schemes for shoppers

Around 5.2billion worth of loyalty points are just sitting on shoppers’ cards, according to new research by fast food chain Subway.

More than a third of shoppers have no idea what their loyalty points entitle them to get, and are clueless as to how to convert their points into stuff they would actually want to buy.

On average, customers have around £37 worth of loyalty points stored up on their cards, which under some schemes could be worth as much as £148.

But which loyalty schemes are actually worth joining – and what do you get for your points?

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?

£15 will be credited to your account as long as you make a purchase in the first 60 days.
You’ll earn 1 loyalty point for every £1 spent at Amazon.
Once you have earned 1,000 points you’ll receive a £10 Amazon gift certificate.
This is equivalent to a cashback rate of 1%.
You’ll also earn 1 point for every £2 spent elsewhere.

My verdict: This is pretty standard scheme, but the extra £15 earned on your first purchase is an added bonus. It’s also handy that you can earn points by spending at other retailers. That said, 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 4 points for every £1 spent in store and at Boots.com.
Each point is worth one penny.
This is equivalent to a generous cashback rate of 4%.
You can also earn 1 point for every £1 spent at Boots Opticians.
And you can take advantage of extra benefits such as ‘double points’ promotions.
Points can only be used to purchase items in Boots branches using your Advantage card to pay for the item. Points can’t be spent at Boots.com or Boots Opticians.

My verdict: Boots offers the most generous scheme at 4 points per £1, so you should be able to accumulate points quickly especially if you take advantage of promotions. What’s more, your points can be spent almost instantly. The only drawback is they can’t be earned on purchases made at any other retailers.

3. John Lewis

John Lewis regularly tops the best retailer polls, but is the John Lewis Partnership Mastercard up to scratch?

What benefits do you get?

You’ll earn 1 point per £1 spent at John Lewis, JohnLewis.com, Waitrose, Waitrose.com, Greenbee.com, Ocado and Ocado.com.
Every 500 points you earn is worth £5 in John Lewis vouchers.
This is equivalent to a cashback rate of 1%
You’ll also earn 1 point per £2 you spend everywhere else.
As a cardholder you’ll also be entitled to special offers. Current offers include a 10% discount when booking a hotel through Greenbee, and £15 off your first grocery order at WaitroseDeliver plus free delivery.

My verdict: This scheme is similar to Amazon’s, except that points can only be earned on purchases made at a handful of John Lewis Partnership retailers. But the promotional deals should add up to extra savings. Make sure you regularly check the special offers section of the John Lewis website.

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 2 points per £1 spent.
500 Nectar points are worth £2.50 for spending in store.
This is equivalent to a cashback rate of 1%.
You’ll also earn 1 point per litre of fuel purchased at Sainsbury’s fuel stations and 1 point per bag when you re-use any bag in a Sainbury’s store.
You can spend straight from your card at Sainsbury’s or use it to buy treats such as hotels, holidays or days out at Nectar.com.

My verdict: Although you’ll earn 2 points per £1 at Sainsbury’s, rather than 1 point per £1 offered by many other retailers, the points are only worth half a penny which means the scheme is no more or less generous than Amazon or John Lewis. However, Nectar cards can be used at a wide range of retailers allowing you to maximise your points on more of your spending, and watch out for special offers which can boost your points tally even more.

5. Tesco

Tesco shoppers can use the Tesco Clubcard to earn loyalty points.

What benefits do you get?

You’ll collect 2 points per £1 spent in store, online and at Tesco Direct.
Every 100 Clubcard points you earn is worth £1 in Clubcard vouchers.
This is equivalent to a cashback rate of 2%.
You’ll also collect 1 point for every £1 spent on petrol at Tesco fuel stations.
Every £10 in Clubcard vouchers is worth £40 in Reward Tokens which can be used to purchase a range of treats including Airmiles, magazines, restaurants and travel.

My verdict: This scheme is better than most because you’ll effectively earn £1 back for every £50 you spend in store, while at Amazon, John Lewis and Sainsbury’s you need to spend £100 to earn the same reward. What’s more, Clubcard vouchers can multiply in value when you spend them at certain retailers. Check out these Clubcard Rewards. But bear in mind you can only earn points at a limited number of Tesco’s partners.

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.

Having said that, you’ll need to earn £30K a year to qualify and American Express isn’t accepted everywhere so it’s not perfect. And moreover both 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.

Finally, if you have a question about being a savvy shopper why not ask the lovemoney.com community for help using our excellent Q&A tool.

Apply for a cashback credit card or reward card or at lovemoney.com

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