Sainsbury's Bank launches 5% internet savings account

Sainsbury's Bank is to launch Internet Saver, its first internet-only account, which will pay five per cent AER/Gross for all balances.

16:34 04 January 2005

Sainsbury's Bank is to launch Internet Saver, its first internet-only account, which will pay five per cent AER/Gross for all balances.

Independent research reveals that the account, which has a minimum balance of 1 and offers full account management facilities via a 24 hour online banking service, is one of just 11 per cent of easy access internet accounts paying five per cent interest or more on all balances.

The rate does not depend on an introductory bonus and is not dependent on customers making regular monthly savings.

In addition, customers are neither restricted nor penalised for the number of withdrawals they make from their account.

Research reveals that of the 11 per cent of easy access internet savings accounts offering five per cent interest or more on all balances, a third of these are only paying this because of their introductory bonuses.

There are 18 easy access internet accounts paying five per cent or more in interest, however, two of them require regular monthly savings and one limits the number of withdrawals that can be made.

Steven Baillie, savings manager, Sainsbury's Bank, said: "By extending our range of savings products we can offer more choice for savers and hopefully encourage more people back into the savings habit.

"For people who like the functionality and convenience of the internet, combined with a good rate, the Internet Saver could be just right for them.

"The account also offers the added convenience of being able to deposit money electronically, by post, or in your local Sainsbury's supermarket."