Sainsbury’s Bank has launched a new internet savings account paying a Best Buy rate of 2.9% to customers opening with a deposit between £1,000 and £500,000.
In an added sweetener, consumers opening an account and paying in at least £1,000 within 30 days will also receive 1,000 Nectar points, worth £5 off your shopping at Sainsbury’s.
The Best Buy Internet Saver account will pay 2.9% on accounts opened before 22 August 2009, providing the saver does not make more than three withdrawals a year. If the number of withdrawals exceeds three during a 12-month period or the balance falls below £1,000, the interest rate reverts to the account’s standard rate of interest, currently 0.51% AER.
Sainsbury’s Bank separately covered by FSCS
Sainsbury’s Bank is a joint venture between the supermarket and Lloyds Banking Group. The good news for savers is that Sainsbury’s Bank is separately covered by the Financial Services Compensation Scheme (FSCS). This means that an individual’s savings of up to £50,000 with Sainsbury’s would be fully covered by the compensation scheme if the bank went bust, even if the saver has additional savings with other Lloyds-owned banks. For more details on the FSCS, see the Which? guide to safe savings.
For further details of the Sainsbury’s Bank account, as well as other great savings rates, check out our Which? Best Buy savings account reviews.
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