Sainsbury’s internet saver account offers 3% gross AER

Sainsbury's Finance is offering a rate of 3% Gross AER on its Internet Saver to customers opening the account with between £5,000 and £100,000.

This rate is guaranteed to be 2% above the Bank of England base rate for 12 months from the account being opened.

If a withdrawal is made during this period, the interest rate reverts to the account's standard rate of interest, currently 1.25% Gross AER. Any existing customers with Sainsbury's savings accounts can also take advantage of the offer.

Sainsbury's Internet Saver account has achieved 'Moneyfacts - Trust It' status for offering a consistently good rate over 36 months, and since its launch in January 2005, it has always paid more than the Bank of England base rate. Indeed, analysis by Defaqto reveals that Sainsbury's Internet Saver is the only instant or easy access savings account generally available that has consistently paid a gross AER interest rate on a balance of £1 that is equal to or above the Bank of England base rate in each and every month since January 2005.

Helen Cook, Head of Savings at Sainsbury's Finance said: "Since October last year, the Bank of England base rate has fallen from 5% to just 1%, which is the lowest rate in the history of the central bank. Given this, interest rates on savings accounts have fallen with the average rate on instant access and notice accounts now just 0.51% and 0.29% respectively.

"The savings industry needs to be creative in finding ways in which to encourage people to save money in an environment of such low interest rates, which is what we are trying to do with our Internet Saver offer."

Sainsbury's Finance has its own banking licence, is separately regulated by the Financial Services Authority and has an independent membership to the Financial Services Compensation Scheme.