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BT has announced that they will be releasing a new credit card which will be linked to customer’s phone and broadband accounts. This means every time a customer makes a purchase on their credit card they will receive a reduction on their BT broadband and phone bill.

For the first £250 spent on their credit card customers will save one pence for every two pounds spent on purchases. Once their spend increases past £250 the discount is doubled, with one pence off the bill for every pound spent.

The incentive means BT customers could save up to to £75 on their broadband and phone bill, or £150 if two BT cardholders live at the same address.

Available in silver, pink, black or green, the card was developed after discussion with customers and aims to offer competitive rates as well as savings on phone and broadband bills. Gavin Patterson, consumer managing director at BT Retail, said the card would be an "obvious choice for millions of BT customers".

This new approach is strong indication that BT wish to retain their stronghold in the telecommunications market, as not only is it advantageous for existing customers, but it may also persuade new customers to join.

Would you use a credit card that helped you save on your broadband bills? Let us know by leaving your comments below.

Compare BT Total Broadband packages at Top 10 Broadband.

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