Wednesday 8th November 2006
Sainsburys Bank has noted how its savings account compares to those available from other financial institutions.
Research carried out by Defaqto on behalf of the bank found that of 39 savings accounts paying interest of five per cent or more, 27 required an initial balance of £50 or more, compared with 12 which required an initial deposit of £1.
Peter Wood, head of savings at Sainsburys Bank, said: "Any rate that is above the Bank of England base rate is extremely attractive for savers, but many of these accounts have different minimum balances."
The research also found that Sainsburys Banks internet savings account is one of only six to pay five per cent gross AER on balances over £1 without relying on bonuses, restrictions or penalties.
Defaqto saw that of the 15 per cent of banks which apply notice periods to withdrawals, one in three charges a loss-of-interest penalty if a withdrawal is made.
Sainsburys Bank offers a range of savings accounts with cashcards, online and telephone banking and promises to beat the market average interest rate until 2010.
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