Sainsbury's increases interest rate on Online Saver

Sainsbury's Finance has increased the interest rate on its new Online Saver account from 3.0 per cent gross AER variable to 3.2 per cent gross AER variable.

The account, which can be opened and managed online, will pay the new higher rate on all deposit balances from £1,000 to £500,000 for 12 months from account opening.

This continues to be the case providing the saver does not make more than three withdrawals during the year, as the account's standard rate of interest will come into play when this clause is activated.

Helen Cook, head of savings at Sainsbury's Finance, said: "Competition in the savings market is hotting up, and we are determined to ensure that we continue to offer some of the best rates available.

"This is why we have increased our Online Saver rate making it even more attractive."

Last week, Barnsley Building Society increased the rate on its three-year fixed rate Online Bond to 4.7 per cent.

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2009-09-30 09:58:18 © Moneyextra.com