The top supermarket reward schemes to earn air miles

If you want to ramp up on Avios or Virgin points, these are the top supermarket reward schemes that let you earn air miles.

Most retail-rewards schemes are not very useful unless you are a regular customer with sound reasons for being loyal. You typically accumulate tiny numbers of points that can only be used at the company that issues them. If you allow collecting points to influence your shopping decisions instead of going with the best price or service, you’re likely to end up spending more overall. But there are a couple of schemes – or more accurately, two pairs of linked schemes – that can be a lot more useful.

Rewards Cards for Avios 

The slickest is Nectar, run by supermarket chain Sainsbury’s, and Avios air miles run by IAG, the parent of British Airways. These are closely linked: Avios can be swapped into Nectar at a rate of 300 Avios to 400 Nectar or vice versa at a rate of 400 Nectar to 250 Avios. Note that because these rates are different, going from one to the other and back again loses you money.

You earn Nectar points at a rate of one point per £1 spent at various outlets (the most useful are Sainsbury’s, Argos, eBay and Esso), but also by clicking through from the Nectar website when buying at a number of other companies. You collect Avios from flying with BA and other airlines, and by going via the BA shopping website. There are also several credit cards that pay rewards in Avios or Nectar points, while other companies sometimes offer a few thousand points of one or the other as a sign-up bonus.

There are various redemption options, but three stand out. First, Nectar points can be used at Sainsbury’s or eBay at a value of 0.5p per point. This puts a cash floor on the value of Nectar, and thus one of 0.67p on Avios. This creates some quirks: Sainsbury’s own Nectar credit card (one point per £5 in most places) is dire compared with the free Barclaycard Avios credit card (one Avios per £1 everywhere), which is in turn the best cashback rate of any free UK credit card. Second, 350 Nectar points gets you a drink of any size at Caffè Nero – at least 1p per point. Last, well-timed redemptions of Avios for long-haul premium flights can easily beat that.

Rewards Cards for Virgin Points 

The other is Tesco Clubcard and Virgin Points. You earn Clubcard points at Tesco (one point for £2) and a few other places (such as Esso garages with a Tesco Express store). These swap into Virgin Points (Virgin Flying Club air miles and Virgin Red rewards are interchangeable) at a rate of 1:2.5 (falling to 1:2 in July), but you can’t go from Virgin to Clubcard.

You earn Virgin points from Virgin Atlantic and other airlines, Virgin Atlantic credit cards, via Virgin’s shopping portal and by booking train tickets via Virgin. Both Clubcard and Virgin have many redemption options and Clubcard’s can often be the best value of all the schemes (1p per point in Tesco, but three times that at many partners – falling to twice next month). But the inability to go from Virgin to Clubcard makes this less useful unless you shop often at Tesco and can amass a lot of points.

Recommended

Best savings accounts – June 2023
Savings

Best savings accounts – June 2023

Interest rates have been creeping up - we look at the best savings accounts on the market right now.
2 Jun 2023
Share tips of the week – 2 June
Investments

Share tips of the week – 2 June

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Jun 2023
The best one-year fixed savings accounts - June 2023
Savings

The best one-year fixed savings accounts - June 2023

You can now earn 5% on 1 year fixed savings accounts - the best rate seen in 14 years. We have all the latest rates available now.
2 Jun 2023
Best easy access savings accounts – June 2023
Savings

Best easy access savings accounts – June 2023

Rising interest rates have boosted the returns on instant-access savings accounts and we're seeing some of the highest rates seen in years.
2 Jun 2023

Most Popular

Savings inertia - why we should all be obsessed with interest rates and savings accounts right now, says Kalpana Fitzpatrick
Savings

Savings inertia - why we should all be obsessed with interest rates and savings accounts right now, says Kalpana Fitzpatrick

Are savers still missing out on hundreds of pounds by not moving their cash for better interest rates?
30 May 2023
Best savings accounts – June 2023
Savings

Best savings accounts – June 2023

Interest rates have been creeping up - we look at the best savings accounts on the market right now.
2 Jun 2023
One day left for households to claim the £200 Alternative Fuels Payment to help with heating bills
Energy

One day left for households to claim the £200 Alternative Fuels Payment to help with heating bills

Households could be due a £200 payment if they heat their homes using alternative fuel sources and aren’t connected to the mains gas grid - but time i…
30 May 2023