Sainsbury’s Bank increases savings’ rate aggressively

Sainsbury’s Bank has positioned itself aggressively in the direct savings account war by increasing its interest rate to five per cent for its Direct Saver account.

The new rate will be promoted with press and internet advertising, accompanied by leaflets distributed in stores.

Cahoot, the online bank owned by Abbey, is promoting its savings account with a rate of 5.5 per cent guaranteed for 12 months, and Alliance & Leicester’s online savings account offers 5.1 per cent.

ING Direct, which revolutionised the savings market when it entered the UK last year, has countered Sainsbury’s move by increasing its rate to 4.85 per cent this week.

In February, Halifax launched its Regular Saver account, supported with television advertising by Delaney Lund Knox Warren featuring its popular Howard character. It offers a rate of six per cent but has conditions including a minimum regular contribution. Sainsbury’s Bank is a joint venture between the supermarket and Halifax Bank of Scotland.

Tesco Personal Finance has an instant savings account, but it has a top interest rate of 4.5 per cent only available for balances of more than &£50,000.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here