Sainsbury’s Finance launches new 12-month cash ISA

Sainsbury's Finance has launched a new 12 month Cash ISA paying 2.6% Gross AER.  Balances start from £500, and customers can save up to the maximum regulated allowance of £5,100 a year.  The account also allows customers to transfer funds in from other cash ISA accounts, and can be managed online and by telephone.  Interest is paid annually.

The new account, which replaces the bank's previous Cash ISA, includes a 12 month variable rate of 2.6% Gross AER, and offers customers instant access.

Helen Cook, Head of Savings, Sainsbury's Finance said: "Our new 12-month Cash ISA provides customers with an attractive rate as well as instant access and importantly, the ability to transfer funds in from other cash ISAs."

The account is open to new and existing customers and offers a rate of 0.5% Gross AER after the 12-month period.

For accounts opened from the 10th August 2010 the special condition also applies:

Variable Rate Individual Savings Account (Variable Rate ISA) Special Offer conditions  This Variable Rate ISA offer is only available for a limited period and may be withdrawn at any time.  For qualifying Variable Rate ISA accounts opened during this offer period, the variable rate (currently 2.60% AER/gross p.a) and conditions, will apply for 12 months from your account opening date. Your first deposit must be a minimum of £500 and the maximum deposit must not exceed the annual Cash ISA limit, currently £5,100. Transfers in from other providers are also allowed. At the end of the 12 month period or if your account balance falls below £500, the rate will revert to the standard Variable Rate ISA interest rate at that time (currently 0.50% AER/gross p.a.).