Should you transfer your American Express Membership Rewards points to Nectar?
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Membership Rewards, the points currency of American Express UK, are one of the most valuable types of points and miles you can collect. Why? Because you can use them in so many different ways, including transfers to airline and hotel programmes.
Another lesser-known transfer option is to Nectar, the UK loyalty programme of Sainsbury’s, Esso, eBay and others. You can transfer your Membership Rewards points to Nectar at any time at a rate of 1:1. So is this a good deal?
For most redemption opportunities, the value of your Nectar points is the same:
- Sainsbury’s — 500 points can be redeemed for a £2.50 discount
- Argos — 500 points can be redeemed for a £2.50 discount
- eBay — 500 points can be redeemed for a £2.50 discount
These all give a value of 0.5p per Nectar point. This is well below the current TPG UK valuation of Membership Rewards points of 1.4p and is in line with some of the least-valuable redemption opportunities, such as gift vouchers and Amazon discounts.
Occasionally, Nectar does offer bonus points on redemptions, although these are fairly rare and you should not rely on being able to use your points to receive a bonus regularly.
A better value use of Membership Rewards points would be to transfer them to an airline partner like British Airways Avios or Virgin Atlantic Flying Club. These also transfer at a rate of 1:1, but because we value both currencies at more than 1p each, we think you can obtain (at least) twice as much value as using your Membership Rewards points through Nectar.
Featured photo courtesy of Shutterstock.