There’s been a big shake up in the UK points, miles and savvy personal finance game.
Tesco and British Airways broke up in 2020, Tesco is now with Virgin Atlantic, and that left many wondering which supermarket partner British Airways would link up with in 2021 going forward. We now know: Sainsbury’s, and the Nectar Points currency. What may sound like a very simple partnership is so much more.
Nectar Points Is New BA Partner
British Airways Executive Club members can now convert Nectar Points from things like Sainsbury’s supermarket shopping into Avios Points with British Airways, and vice versa. Yep, points can equally be moved from British Airways into Nectar, opening up an insanely wide range of new ways to spend British Airways Avios.
How do Nectar Points Convert Into Avios?
Points can be moved between Nectar and British Airways in either direction, and the rates are steady both ways. In other words, you don’t get penalized from moving back and forth. That’s huge! Here’s how Nectar Points and Avios convert…
- 400 Nectar Points = 250 BA Avios. 250 BA Avios = 400 Nectar Points.
To be able to do anything with this information, it’s valuable to understand the approximate value of each currency, so you avoid a situation like with actual cash, where a million of one currency sounds better than another, but is actually less.
Nectar Points are typically redeemed for half a pence (.05p) each, where 1000 Nectar Points could be used for £5 off a purchase. Don’t forget, Nectar Points can be used on UK eBay, at Sainsbury’s and Argos. Avios have historically held a similar value to Nectar Points, but with more upside where you could gain far stronger value, thanks to first class upgrades, or using them for flights in premium cabins.
That’s exactly why the notion that BA Avios are worth more than Nectar Points — 250 of one gets you 400 of the other – – is a big deal.
It means you’re instantly able to get more from your Avios than you were before, and can even use them to pay for your Sainsbury’s groceries as if you were using cash!
It also means any credit cards or promos offering Nectar Points are an equally big deal for people who want Avios, and can provide additional avenues to earn welcome bonuses and other points enticements.
A Practical Example: You’ve got 25,000 BA Avios. You convert them into Nectar Points, giving you 40,000 Nectar Points. Those points can be used for £200, as good as cash, at Sainsbury’s, Argos or eBay, giving you £200 of value per 25,000 Avios.
Obviously, a BA upgrade from premium to business class, or return flights within Europe during the summer may be worth more, but cashing out for lower value no longer makes sense, and most people are thrilled to be able to achieve that kind of value.
You could even buy a bottle of Dom Perignon, with some points left over : )
In the same notion, whenever Nectar or eBay has a big promo, where your points are worth more than usual, it could be worth considering moving BA Avios over to Nectar to pad out your account. Going the other way, when British Airways does 50% off all flights in all cabins using points , it could make sense to dump your Nectar Points into BA ASAP.
When Does Nectar x BA Linkup Start?
The cool thing about this partnership is that it’s like parallel earning programs. You can earn Nectar Points on Sainsbury’s purchases, while paying with your BA Amex, double dipping the entire way. You can convert Nectar points into British Airways Avios from January 25th, 2021 onward. Yep, you can even move them back and forth too!
As a welcome to the new program, British Airways is offering 500 bonus Avios when you move at least 1,600 Nectar Points by February 14th. Nectar is also offering double Nectar Points on shopping. Simple head to Nectar or British Airways to get started.