Sainsbury’s new online savings account offering 3.0%

Sainsbury's Finance has announced the launch of a new online savings account paying an attractive rate of 3.0% Gross AER (variable). The new account, called Online Saver, can be opened and managed online.

New research commissioned by Sainsbury's Finance reveals 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.

David Black, Banking Specialist at Defaqto Limited, commented: "The average rate paid by instant and easy access savings accounts is currently 0.85% gross, so the 3.00% rate offered by Sainsbury's looks to be a very good deal for those who are confident that they can maintain a balance of at least £1,000 and make no more than three withdrawals over the course of a year."

Sainsbury's Online Saver will pay 3.0% on all deposit balances from £1,000 to £500,000 for 12 months from account opening, providing the saver does not make more than three withdrawals in the 12-month period. If the number of withdrawals exceeds three during the 12-month period 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.

Helen Cook, Head of Savings at Sainsbury's Finance said: "Despite a competitive savings market, our analysis shows that there are very few savings accounts paying rates of interest of 3.0%, so our new Online Saver account is extremely attractive."

To open a new Sainsbury's Online Saver account, visit sainsburysfinance.co.uk. The new account allows three withdrawals a year without penalty.

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.