Account name
Defined Access Saver - Issue 49
What are the interest rates?
The Interest Rate (AER)* is payable as follows:
Up to 3 withdrawals in each 12 month period:
| £1 - £999 |
1.30% |
| £1,000 - £500,000 |
3.50% |
| £500,001 + |
1.30% |
4 or more withdrawals in each 12 month period:
The interest rate applied to your account will depend on your balance and the number of withdrawals you have made in each 12 month period. The interest rate earned will apply to the whole balance in your account.
This includes balance increases due to interest being paid into your account.
If, from account opening, more than 3 withdrawals are made in a 12 month period, the interest rate will reduce as shown above. This interest rate will apply until the 12 month period has ended, at which point it will return to the higher rate, and the number of withdrawals will reset to zero. You will be able to make up to 3 withdrawals in the next 12 month period without the interest rate reducing.
Interest is calculated daily and paid on the anniversary of account opening.
You can check the interest rate applicable to your account on any day by visiting sainsburysbank.co.uk and logging into your online banking.
If your interest rate increases because you paid in more money the rate will update overnight online. But interest will be applied at the rate applicable to your new balance, from the day we receive your payment.
Can Sainsbury's Bank change the interest rate?
Rates are variable. This means we may increase or decrease interest rates at any time, for example to reflect a change in the Bank of England base rate, or if there are changes in market conditions.
We will contact you to tell you if your interest rate changes. For further information on how and when please refer to Condition 7 of our General Terms and Conditions and Condition 2.3 and 2.4 of our Defined Access Terms and Conditions.
What would the estimated balance be after 12 months?
No withdrawals made:
| £500 |
£506.50 |
| £1,000 |
£1,035.00 |
| £20,000 |
£20,700.00 |
| £510,000 |
£516,630.00 |
This example is based on one lump sum deposit being made at account opening, with no further deposits or withdrawals made.
4 withdrawals made:
| £500 |
£506.07 |
| £1,000 |
£1,019.66 |
| £20,000 |
£20,403.03 |
| £510,000 |
£516,611.47 |
This example assumes one lump sum being deposited at account opening on 1 January, and then a withdrawal of £10 made every month for the next 4 months. It is then assumed that no further withdrawals or deposits are made. The lower interest rate is only applied after the 4th withdrawal has been made.
Both examples are provided as an illustration only and do not take into account individual customers’ circumstances.
How do I open and manage my account?
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You must be aged 18 or over and be a UK resident to open a Sainsbury's Bank savings account.
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You can open your Defined Access Saver by applying online.
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You can manage your account via online banking or by contacting us.
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You must invest a minimum of £1 within 60 days of account opening to ensure that your account remains open and that you benefit from the advertised rate of interest.
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The maximum amount that can be held in the account is £2,000,000.
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You do not have to deposit any further minimum amount at any time following the initial deposit.
Can I withdraw money?
You can transfer money from your Defined Access Saver to a current account held in your name with a bank or building society which is part of the UK clearing system. Withdrawals can be made by electronic transfer via the Sainsbury's Bank online banking service or via Telephone Service. However, if you make 4 or more withdrawals in a 12 month period, the interest rate will reduce, as shown above.
Additional information
Interest is paid gross. You may need to pay tax on any interest that exceeds your Personal Savings Allowance. Please contact HMRC if you need more information.
*AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
