Sainsbury’s savings to pay 2% above Bank of England base rate

Sainsbury’s Finance is guaranteeing that its Internet Saver account interest rate will be 2% above the Bank of England base rate.

Sainsbury’s is making this undertaking for 12 months from the time the Internet Saver account is opened.

To get the higher level of interest though no withdrawals can be made during the 12 month period.

If they are then the interest rate falls back to the standard rate for the account, currently 0.75% Gross AER.

The savings account can be opened with between £5,00 and £10,000.

Head of Savings at Sainsbury’s Finance, Helen Cook, said ‘The average interest rate on an instant access savings account is now 0.17%. With rates so low, savers need promises from banks and building societies that they will still offer competitive rates, which is exactly what we are trying to do with our Internet Saver offer.’

The Sainsbury’s Internet Saver account has achieved ‘Moneyfacts – Trust It’ status for offering a consistently good rate over 36 months.

Sainsbury’s Finance is a 50:50 joint venture between Sainsbury’s and Lloyd’s Banking Group.