'Good value' from Sainsbury's Bank Internet Saver

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'Good value' from Sainsbury's Bank Internet Saver

Tue 26th Sep 2006

A new account from Sainsbury's Bank claims to offer good value for those hoping to earn high interest on their savings.

The Sainsbury's Bank Internet Saver offers customers the opportunity to earn five per cent gross annual equivalent rate (AER) on balances starting at just £1. Unlike many saving accounts, the Sainsbury's Bank Internet Saver does not rely on short-term bonuses or have restrictive terms and conditions.

Following the Bank of England's recent decision to increase the base rate of interest by 0.25 per cent, a number of banks have increased their saving interest rates.

However, research from Sainsbury's Bank shows that of the 38 accounts offering rates of five per cent or more, 18 of them rely on introductory bonuses to boost earnings, whilst 23 have some form of restriction such as withdrawal charges.

Peter Wood, Director of Savings, Sainsbury’s Bank explained: "Interest rates of fiver per cent or more are very attractive but some of the accounts paying these are heavily reliant on short-term bonuses or restrict access to your savings."

He added: "Before choosing an account, make sure you understand and accept what your interest rate is dependent upon otherwise you could be in for a nasty surprise when it drops."

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