Sainsbury’s Bank increases cash ISA rate

Sainsbury's Bank has increased the interest rate on its Cash ISA from 2.80% AER to 3.01% AER Variable, for new accounts opened from 17th September.

The account does not include a bonus rate, and balances start from £500. Customers can save up to the maximum regulated allowance of £5,640 a year, and they can also transfer funds in from other cash ISAs. Savers should remember that if they have paid in their full Cash ISA allowance, any amount withdrawn cannot be replaced during the same tax year.

The account, which can be opened and managed online or by phone, imposes no withdrawal restrictions, and interest is paid annually. It is open to new and existing customers.

Helen Cook, Head of Savings at Sainsbury's Bank said: "Our Cash ISA pays one of the most attractive rates in the market. It's a straightforward account for savers who don't want the complications of withdrawal restrictions, notice periods or short-term bonuses."

Sainsbury's Bank also provides an eSaver Special account which offers a rate of 2.70% Gross AER (variable), a Bonus Websaver offering 2.90% Gross AER (variable) and an Extra Saver offering 2.50% Gross AER (variable).

To find out more about Sainsbury's Bank's new Cash ISA, Bonus Websaver, non-bonus eSaver Special or Extra Saver visit sainsburysbank.co.uk.