Sainsbury’s increases its new online savings account rate

Sainsbury’s Finance will increase the interest rate on its Online Saver account from 3.0% gross AER (variable) to 3.2% gross AER (variable) from Friday 2nd October.

To account is open to new and existing customers and must be applied for and managed online. The access the rate, savers must deposit at least £1,000 (up to a maximum of £500,000) and the balance must remain above this minimum for 12 months from the date the account is opened.

Up to three withdrawals are permitted the 12 month period. If any further withdrawals are made or the balance falls below £1,000 or goes above £500,000, the interest rate reverts to the account’s standard rate of interest of 0.5% Gross AER.

Last month, research from Sainsbury’s Finance last month revealed that only 3% of instant access and notice accounts pay 3.0% Gross AER or more on balances of £1,000. Furthermore, only 21.4% of these top paying accounts offer interest on a monthly and annual basis.

Helen Cook, Head of Savings at Sainsbury’s Finance said:

“Competition in the savings market is hotting up, and we are determined to ensure that we continue to offer some of the best rates available, which is why we have increased our Online Saver rate making it even more attractive.”

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