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Spend & Save

Five Questions About: Supermarket banks


Is Barclays going to be selling fruit and veg?

There's a thought! But sadly, no. This is about supermarkets taking on the high-street banks by flogging credit cards and savings accounts.

They've done that for years, haven't they?

Well, yes, but Asda has shaken up the market this week by launching a new personal finance brand.

They've had one for years, haven't they?

They've offered savings and insurance for around a decade. But the chain – owned by the world's biggest retailer, Walmart – has now launched Asda Money, with an attractive-looking cashback credit card.

How does it stack up next to rival store cards?

The other supermarkets offer credit cards with loyalty points. But Asda has decided to offer a straight, one per cent cashback on shopping at its stores, and 0.5 per cent elsewhere. It reckons the average shopper could earn £81.66 a year by using its plastic. However, anyone spending the same amount on a Tesco card could earn £118-worth of Clubcard points. Sensible shoppers will stick with their existing stores.

How does the cashback deal compare?

There is a cashback deal with American Express which pays five per cent for the first three months, 1.25 per cent after – but it costs £25 a year.