Sainsbury's Bank: Savings accounts offer low interest rates

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Sainsbury's Bank: Savings accounts offer low interest rates

Tue 17th Mar 2009

Sainsbury's Bank has conducted research which reveals that many savings accounts in the UK are currently offering their customers low interest rates.

According to the supermarket financial services provider, just 14 of the 367 instant access savings accounts on the market currently offer rates of more than three per cent.

This equates to less than four per cent of banks offering to pay above three per cent interest per year. Sainsbury's claims that the average rate offered on instant access accounts is 0.17 per cent.

Helen Cook, head of savings at Sainsbury's Finance, said: "With rates so low, savers need promises from banks and building societies that they will still offer competitive rates, which is exactly what we are trying to do with our Internet Saver offer."

Earlier this month, the Bank of England cut interest rates to 0.5 per cent, a reduction which several savings account providers have passed on to their customers.

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