Sainsbury’s Finance has today launched a new range of fixed-rate savings accounts.
The 1-year and 2-year fixed-rate savings bonds are competitive and have immediately entered the Which? Best Rate tables. The 1-year product pays 3.35%, while the 2-year deal returns a rate of 3.85%.
The fixed-rate offers are available to both new and existing customers and savers can put between £5,000 and £50,000 into the accounts. As with many fixed rate products, no withdrawals are permitted within the term of the offer.
Good savings deals, but not the best accounts
Paul Davies, savings analyst at Which?, commented: ‘Fixed-rate deals are still attractive with the base rate at 0.5%, but there are signs that the Bank of England might raise the base interest rate over the coming months.
‘The new savings bonds from Sainsbury’s Finance are competitive without being at the very top of the tables – you can get 3.5% on a one-year fix, for example. Sainsbury’s Bank achieved an average score for savings satisfaction in our last customer survey, recording 51% – compared to First Direct at 72% and Co-op Bank, which scored 68% for customer satisfaction.
‘As ever with fixed-rate deals, you should make sure that you can afford to tie up your money for the designated period. If you think there’s a chance you’ll want to get your hands on the cash you’ve saved at short notice, you should opt for an instant access account instead.’
You can compare all types of savings accounts by reading the Which? Best Rate savings accounts review.
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