Menu

Sainsbury’s Bank Launches New Fixed Rate Savings Accounts

03 September 2012

Sainsbury’s Bank will today launch four new fixed rate savings accounts, paying between 3.50% and 4.00% Annual AER gross*.
The bonds, available in two-, three-, four- or five-year options, allow single or joint applications for a single deposit between £5,000 and £50,000. Customers have the option of receiving monthly or annual interest, to be paid into a separate nominated account.
The new accounts follow the launch of a one-year fixed rate savings account on 30th August, paying 3.26% gross AER*.

Product details
Offer For balances between Annual AER gross Annual AER net
1 year £5,000 – £50,000 3.26% 2.60%
2 year £5,000 – £50,000 3.50% 2.80%
3 year £5,000 – £50,000 3.75% 3.00%
4 year £5,000 – £50,000 3.90% 3.12%
5 year £5,000 – £50,000 4.00% 3.20%

Helen Cook, Head of Savings at Sainsbury’s Bank said: “We’re keen to offer our customers choice and these accounts offer a very competitive rate of return; we are the only supermarket bank to give savers the option of 4 and 5 year accounts. Most economists are predicting that the Bank of England base rate will remain low for some time yet, so they’re an option if you prefer a guaranteed rate of return for a fixed period of time.

“Unlike some riskier investment options on the market at the moment, deposits in our savings accounts are guaranteed under the financial services compensation scheme that protects up to £85,000 held in a single account.”

Criteria for all offers:
• Open with £5k – £50k
• Available to new and existing customers
• Joint and single applications
• Only one deposit permitted*
• No further deposits and no withdrawals including closure, permitted within term of offer – If you think you’ll need access to your funds these accounts may not be the right savings product for you*
• Apply online or by telephone
• Interest paid to nominated account (either annually or monthly)

To find out more about Sainsbury’s Bank’s new fixed rate savings accounts, visit www.sainsburysbank.co.uk.

-Ends-

For further information, please contact:
Phil Anderson / Ian Morris, Citigate Dewe Rogerson 020 7638 9571
Natasha Virtue, Sainsbury’s Bank, 0131 338 2974
Notes to editors:
* Only one deposit is allowed to your Fixed Rate Saver.  After this no withdrawals or additional deposits are allowed, and you won’t be able to close the account before the end of your term. If you think you may need access to your funds during the term a fixed deposit may not be the right savings product for you. Funds must be received within 30 days of the account opening date.
Gross rate: The gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law (currently 20%).
Net rate: the net rate is the rate of interest paid after the deduction of lower rate tax at 20%.

AER: AER stands for annual equivalent rate and illustrates what the interest would be if interest was paid and compounded each year.

All rates correct at time of going to press.
Sainsbury’s Bank has its own banking licence, is separately regulated by the Financial Services Authority and has an independent membership to the Financial Services Compensation Scheme.
Sainsbury’s Bank:
To view our latest press releases and product information, please visit the Sainsbury’s Bank online media centre atwww.sainsburysbank.co.uk/media
Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times.  Our products consistently top Best Buy tables and regularly win awards for quality, price and service.
Sainsbury’s Bank recent awards in 2012 include Best Personal Loan Provider, Consumer Moneyfacts; Best Low Rate Credit Card Provider and Best Credit Card Provider for use abroad (Gold Credit Card), Moneynet; Best Loan Provider, Moneysupermarket Supers.
2011 awards include Best Overall Online Provider, Best Online Pet Insurance Provider, Best Online Personal Loan Provider and Best Direct Home Insurance Provider at the Your Money Awards. It was also named Most Competitive Term Assurance Direct Provider by Moneyfacts.
Sainsbury’s Bank is a joint venture between J. Sainsbury plc and Lloyds Banking Group.
For further information and general Sainsbury’s Bank enquiries, customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysbank.co.uk