Loyalty cards and discount schemes explained

What the main schemes offer, what they cost, and how to tell whether you really save.

The short answer

Loyalty cards and discount cards can save real money, but only if you check the saving is genuine and the card pays for itself. Supermarket member prices are often lower than the usual price, a Railcard pays back after about £105 of eligible fares a year, and student and Blue Light cards cost little or nothing. None of it helps if it makes you buy things you did not need.

Supermarket loyalty prices

Most large supermarkets now have member-only prices, shown on the shelf next to the normal price. You usually have to scan your card or app at the till to get them. For example, Nectar says it offers up to 10 personalised discounts a week in the Nectar app, which you unlock before you shop.

The Competition and Markets Authority (CMA) looked at loyalty pricing in groceries. It found that 92% of around 50,000 items it checked offered a genuine saving against the usual price, and that shoppers could save 17% to 25% on average on loyalty-priced products. It also found that 55% of people surveyed thought the usual price was raised to make loyalty deals look better, so it is worth checking.

Check the unit price, not just the member price. A deal on a smaller pack can still cost more per 100g than a bigger one. Our unit price calculator does the comparison.
Look at the non-member price. If it is not far above the price you normally see, the saving may be small.
Do not buy extra because it is cheaper. A discount on something you will not use is still money spent.
No smartphone? The CMA said some supermarkets could do more to let people without smartphones, and under-18s, get loyalty prices, including sign-up in store or by phone. Ask at customer service.

Railcards

A Railcard gives a third off most rail fares. The 16-25 Railcard and the Senior Railcard (for people aged 60 and over) each cost £35 for one year or £80 for three years, according to the Railcard website.

Break-even: a third off means you save £1 for every £3 of eligible fares. A £35 card pays for itself once you spend about £105 a year on fares it covers. The £80 three-year card pays for itself at about £240 over the three years.
16-25 minimum fare: the 16-25 Railcard has a £12 minimum fare on weekday mornings before 10am. It does not apply to Advance tickets, public holidays, or travel in July and August.
Other railcards: there are Railcards for two people travelling together, and for families and friends, among others. Check the discount and any minimum fare rules before you buy.

If you only make one or two short trips a year, you are unlikely to save enough to cover the cost.

Student discounts

Students can join UNiDAYS for free, which gives student discounts with a range of brands. TOTUM+ is a paid student card, listed on its website at £14.99 for one year, £24.99 for two years or £29.99 for three. Work out which brands you actually use before paying for a card. Our students page covers budgeting, student loan repayments and the Council Tax exemption.

Blue Light Card

The Blue Light Card costs £4.99 for two years, according to its website. It is open to people who work or have retired from the emergency services, the NHS, social care, teaching and the armed forces, and from several other sectors listed on the site. You usually need to prove you are eligible when you apply.

Your rights on price labels

Shops that sell goods to consumers must normally show the unit price, for example the price per kilogram, in a clear and easy to read way, under the Price Marking Order 2004. There are exceptions, such as when the unit price is the same as the selling price. If you think a shop is not showing unit prices, your local Trading Standards service can help through Citizens Advice.

A quick check before you sign up

Will you use it at least a few times a month, or on enough spending to cover any fee?
Do you have to share personal data, and are you comfortable with it? Read what the scheme says it will use your data for.
Is the saving still there once you compare with a cheaper shop or own-brand product?
Can you cancel or stop using it easily?

For more ways to bring bills down, see our guides to cutting your food shop and cost of living help.

Where to learn more

This guide is for information only and is not tax, benefits or financial advice. Rules and amounts can change, so check the official pages before you rely on them.