Asda launches first savings product

Asda is launching its first savings account and is claiming it will offer a higher interest rate than rival supermarket chains. The online-only account will launch his week.

The supermarket says the move was driven by customer demand for a simple savings account and a bid to build up its financial services offering. It already offers motor, travel and home insurance.

Customers need to be over 18 years old, already hold an account with a bank or building society and pay in £100 to open the account, which offers an initial interest rate of 6.35%. The rate of interest is guaranteed for the first 12 months. After the first year, Asda promises to match the Bank of England’s base rate until 2010.

Rival Sainsbury’s, which offers a similar online service, offers an initial interest rate of 6.25%.

†