Sainsbury's launches savings account offering 2.8%

Sainsbury's Finance has announced the launch of a new savings account paying an attractive rate of 2.8% Gross AER (variable) for balances of £1 or more. The new account, called Easy Saver, can be opened immediately over the phone. The maximum deposit is £500,000.

The Sainsbury's Easy Saver guarantees to pay at least 2% above the Bank of England bank rate for 12 months from account opening, providing the saver does not make more than five withdrawals in this period. If the number of withdrawals exceeds five during the 12-month period, the interest rate reverts to the account's standard rate of interest, currently 0.50% AER Gross.

New research commissioned by Sainsbury's Finance reveals that only 5.1% of instant access and notice accounts pay 2.8% Gross AER or more on balances of £1. Furthermore, none of these top-paying accounts promises to pay 2% or more over the Bank of England base rate. Unlike some other savings accounts, the new Sainsbury's Easy Saver can be opened immediately over the phone without any need to fill out and post back application forms.

Helen Cook, Head of Savings at Sainsbury's Finance said: "The savings market is becoming increasingly competitive and we are delighted to offer this new telephone account that not only offers an attractive rate of interest for balances of as little as £1, but also offers a reassuring rate guarantee. Our new Easy Saver Account highlights our commitment to provide consistently attractive rates for our customers."

To open a new Sainsbury's Easy Saver account call 0500 40 50 60.

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.