Sainsbury's Money has launched an instant savings account offering a competitive 4.35% AER rate, available to members of its Nectar loyalty scheme. The account, powered by NatWest Boxed, became available on Tuesday (October 6).
Rates and eligibility
Nectar members can access the enhanced rate of 4.35% AER / 4.27% gross p.a. (variable), which includes a 3.10% (fixed) 12-month bonus, by entering their Nectar card number. Non-members of the free loyalty scheme can still access a rate of 4.25% AER Gross p.a. (variable), including a 3.00% (fixed) 12-month bonus, according to Sainsbury's Money.
There are no minimum balance requirements or fees with the account, and customers can save up to £1 million. Money can be accessed without penalties, with withdrawals of up to £10,000 per transaction and £20,000 over a rolling 24-hour period, the supermarket's financial services division says.
Interest and access
Interest is calculated daily and paid out monthly, with the 12-month bonus added to the account's standard variable interest rate. Estimated balances after 12 and 24 months can be found on the Sainsbury's Money website.
UK residents aged 18 or over who meet the account eligibility requirements can open the account. Customers must also have a UK bank or building society account in their name to use as a nominated account. Eligible savings up to £120,000 are protected by the Financial Services Compensation Scheme (FSCS).
Market context
Sainsbury's Money launched its personal loans powered by NatWest Boxed as part of the long-term strategic partnership between the supermarket and NatWest. The offering is one of many easy access savings accounts on the market.
Top options listed on Moneyfactscompare.co.uk include Tembo Money's HomeSaver, which has an AER of 4.55% paid at £10 (including a 1.55% bonus for 12 months). Meanwhile, Tesco Bank's Internet Saver has an AER of 4.24% at £1, though that includes a 3.19% bonus for 12 months. Rules about withdrawals, minimum and maximum deposits vary between financial products.
The latest deals can be found on the Moneyfactscompare website, with their table of the top options updated hourly.
