Branching out into the murky world of personal finance, BT has launched the new BT Credit Card for BT customers.

In association with MBNA, the card offers a loyalty-points type reward scheme that could see reductions from your BT bill.

With the new flexible-friend offering, your credit card and BT telephone and broadband accounts are linked so that every time the card is used for a retail purchase, the cardholder will be rewarded with money off their BT bill automatically.

For the first £250 of spend on the card each month, customers will earn one pence for every two pounds of purchases, with no minimum spend required.

Above £250 of card purchases per month, customers will earn double the discount on their BT bill: one penny for every additional pound spent up to a total of £75 a year.

So, if you spent a grand a month on the card, that would earn you just under £9 off your bill.

This could be a way to save money on your phone bill if you're the kind of clever consumer who can remember to pay on a certain card and wipe the debt off before the interest kicks in – anyone who forgets will be looking at standard interest rates of 16.9% APR, not pretty.

Applications for the card can be made on BT's website.