The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.

UK Grocery Credit Cards 2019

We've analyzed the credit cards available in the UK, in order to find cards for saving money on your grocery shopping. The following cards offer rewards according to different criteria—perhaps you want a card that pays you great rewards when you dine out also, or a card that doesn't charge a fee. Picking the best card for you depends on your individual situation.

Grocery Credit Cards

After analyzing the grocery credit cards in the marketplace, we found that the following cards offer the rewards in their respective categories. We based our calculations on average UK household charges of around £1,800 a month, and incorporated all relevant annual fees, rewards rates, bonuses and perks. Actual results may vary depending on how you use a card. Finding the best card for you will depend on your personal needs and spending patterns, and may also depend on where you like to shop! Those wanting to shop for groceries using an app for convenience can read about our study on the most popular grocery delivery apps.

Overall Grocery Credit Card: Nectar Credit Card

With the Nectar Credit Card, cardholders earn around 1% rewards on ALL spending, wherever American Express is accepted. The welcome bonus of 20,000 Nectar points (earned when you spend £2,000 in the first three months) is worth £100. While not technically a grocery card as its not co-branded with a grocery chain, the rewards you earn are Nectar points, the same rewards program used by Sainsbury's. One other notable feature of this card is that you get flexibility to shop at different grocery chains. You'll earn the same 1% rewards rate on all shops, regardless of brand. While you are not limited in how you earn points, you can only redeem points at one grocery chain (Sainsbury's) or other Nectar partners. We estimate that cardholders can earn Nectar points worth over £500 in their first two years with the card, assuming an average UK household spending level.

Summary

  • May be used at all grocery stores, not a particular brand
  • Earn 1% on all purchases
  • Rewards earned as Nectar points
  • 20,000 point welcome bonus
  • £25 annual fee (waived first year)
  • 22.9% purchase APR (variable)

Sainsbury's Grocery Credit Card for Long-Term, In-Store Grocery Spending: Sainsbury's Credit Card

The Sainsbury's Nectar Purchase Card provides rewards around 1% for in-store Sainsbury's grocery shopping. Rewards at other retailers are significantly lower, approximately 0.1%, so the card is not as rewarding for other general spending. This 1% rewards rate on Sainsbury's spend is in addition to the 0.5% shoppers earn by swiping their Nectar card at the till through the Sainsbury's loyalty program, bringing overall rewards on Sainsbury's shopping to 1.5%. This translates to the average UK household earning rewards worth £65 a year, assuming they buy their groceries at Sainsbury's.

Summary

  • Rewards earned as Nectar points
  • Additional 1% on Sainsbury's purchases
  • Lower-than-average rewards on non-Sainsbury's spend
  • 5,000 point welcome bonus
  • No annual fee
  • 18.9% purchase APR (variable)

Asda Grocery Credit Card for Long-Term Use, All Spending: Asda Cashback Plus Credit Card

The Asda Cashback Plus Credit Card offers higher-than-average rewards on in-store grocery spending AND other general spending. While it doesn't offer a welcome bonus, it does deliver ongoing rewards rates of 2% on Asda spending and 1% everywhere else. When used for all credit-card spending, the average UK cardholder can earn around £470 in Asda vouchers over two years.

Please note: The rewards rate for non-Asda spend on both Asda credit cards is dropping on 13 April 2018 to 0.2%.

Summary

  • 2% on Asda purchases, 1% elsewhere
  • Rewards earned as Asda vouchers
  • £3 monthly fee
  • No welcome bonus
  • 19.9% purchase APR (variable)

Costco Grocery Credit Card for Dining Out: The Costco TrueEarnings Credit Card

The Costco TrueEarnings Credit Card is a grocery card that pays extra rewards for restaurant dining. Expect ongoing rewards rates of 3% on restaurant dining, 2% on travel bookings, and 1% everywhere else. Rewards are awarded as Costco vouchers, so the card is not suitable for those who don't live near enough a Costco to redeem the annual rewards voucher. It should also be noted that cardholders must already be Costco members with a photo on file at Costco. While this card carries no annual fee, cardholders do need to keep up their Costco membership (currently £33.60 a year, including VAT). Used for all general spending, this card can return a value of £450 over the first two years.

Summary

  • Earn 3% on dining, 2% on travel bookings, and 1% elsewhere
  • Rewards earned as Costco vouchers
  • No cap on dining and travel rewards; £300 annual cap on rewards earned elsewhere, including Costco
  • No annual fee, but must be Costco member (£33.60 a year)
  • 0% on purchases for 6 months
  • 19.9% purchase APR (variable)

Waitrose Grocery Credit Card with No Fee: The John Lewis Waitrose Partnership Card

The John Lewis Waitrose Partnership Card is a free rewards card that rewards cardholders with 1% on spending at John Lewis or Waitrose, and 0.5% on other spending elsewhere. Rewards vouchers can be redeemed at either John Lewis or Waitrose. If used for all credit-card spending, the average UK cardholder would earn around £300 over the course of two years with this card. There is currently a welcome bonus of a £10 voucher for spending £500 in the first 90 days—while not a particularly large bonus, keep in mind this is a free card.

Summary

  • 1% at John Lewis and Waitrose, 0.5% elsewhere
  • No annual fee
  • Promotional £10 voucher when you spend £500 in first 90 days
  • 18.9% purchase APR (variable)

Summary of Grocery Credit Cards

Below is a summary of grocery rewards credit cards.

For...CardRewards TypeQuick Overview
OverallNectar Credit CardNectar PointsEarn 1% on all spending, plus a 20,000 point welcome bonus
In-Store Groceries (long term)Sainsbury's Nectar PurchaseNectar PointsEarn additional 1% (1.5% all in, including loyalty points) on Sainsbury's shopping. No fee.
All Spending (long term)Asda Cashback PlusAsda VouchersEarn 2% on Asda purchases; 1% elsewhere
Restaurant DiningCostco TrueEarningsCostco VouchersEarn 3% on dining, 2% on travel, 1% elsewhere
No Annual FeeThe Partnership CardJohn Lewis/Waitrose VouchersEarn 1% on John Lewis/Waitrose spending, 0.5% elsewhere. No fee.

How Grocery Credit Cards Compare

To compare the many grocery credit cards available to the UK consumer, we calculated the rewards the average UK household would earn on each one. First, we gathered data on the average household budget expenditures across different spending categories (e.g., food, dining, petrol, etc.) based on the "Family Spending, 2015 Edition" report from the Office of National Statistics.

We found that the average UK household has approximately £22,000 of expenses that can be charged to a credit card. After organizing the data into bonus categories, we applied each card's respective rewards rates, annual fees and bonuses. The chart below shows the results according to these estimated rewards over two years.

A graph comparing the estimated rewards from the best UK grocery rewards credit cards
Rewards on Grocery Rewards Credit Cards

For those who want to have their groceries delivered, but not pay a fortune for the service, some grocers offer free delivery if you spend a certain minimum.

Comments and Questions

The guidance on this site is based on our own analysis and is meant to help you identify options and narrow down your choices. We do not advise or tell you which product to buy; undertake your own due diligence before entering into any agreement. Read our full disclosure here.