Sainsbury's increases Online Saver account rate

Sainsbury's Finance has increased the interest rate on its new Online Saver account from 3.0% gross AER (variable) to 3.2% gross AER (variable) from Friday 2nd October. The account can be opened and managed online.

Sainsbury's Online Saver will pay the new higher rate 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.

Research commissioned by 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."

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.