Over the last year and a bit there have been numerous comparisons between FlyBuys and Everyday Rewards, most notably the survey conducted by Choice back in January.
Each time the reports cover grocery shopping and the combination between Everyday Rewards and Qantas Frequent Flyer usually wins the battle. This prompts a response from FlyBuys stating that FlyBuys isn’t simply about grocery shopping. Well, this time they’ll have to get creative as the FlyBuys program is more rewarding than Everyday Rewards when only shopping groceries.
Of course, I’m referring to the new credit card offering from Woolworths and Qantas compared to the already existing Coles Group Source MasterCard. Now, I am aware that both of these cards offer benefits outside the supermarket and different people value these various benefits in different ways. For the sake of this comparison, let’s look at the cards as average Australian family looking to get more out of their weekly grocery shop.
Earn Rate: 1 point per dollar on eligible purchases, an additional point for every dollar spent over $30 in one transaction at participating Woolworths Group Stores.
According to Roy Morgan research, and as can be found in the Choice article, the average Australian family spends $156 a week in the supermarket. We’ll assume that the family does one weekly shop. From this we get the following:
156 points each week from the card itself, 8,112 points per year.
126 points each week for each dollar spent over $30 in one transaction, 6,552 points per year.
This adding up to a grand total of 14,664 points each year. Given that the user of this card is looking for more bang for their buck at the supermarket, we’ll redeem for a WISH Gift Card.
$100 WISH Gift Card: 14,500 Qantas Frequent Flyer points.
% Of Reward Earned : 101% Giving the points a value of $101.13 with this way of earning and redeeming.
Earn Rate: 2 points per five dollars on eligible purchases, an additional two points per five dollars when also displaying your FlyBuys card.
62 points each week from the card itself making 3,224 points per year.
62 points each week from the FlyBuys card making 3,224 points per year.
This adding up to a grand total of 6,448 points each year. A similar redemption option to the WISH gift card is a FlyBuys gift card.
$20 FlyBuys Gift Card: 2,500 FlyBuys points.
% of reward earned : 257.92% Giving the points a value of $51.58 with this way of earning and redeeming.
With all that in mind, the Woolworths Everyday Rewards Qantas Credit Card looks like the clear winner, but the Coles Group Source Mastercard has no annual fee, opposed to an $89 fee attached to the Woolworths Qantas card. Here’s how they stack up, annual fees deducted:
Woolworths Everyday Rewards Qantas Credit Card Net Profit: $12.13
Coles Group Source Mastercard Net Profit: $51.58
When the dust settles, the Coles Group Source Mastercard is the better rewards credit card out of these two offerings when it comes to purely grocery shopping.
What do you think of the new card by Woolworths and Qantas?
* This information is intended as a guide only. Please consult your financial adviser before making any decisions regarding the information found in this article or it’s comments.