Sainsburys increase rates on esaver but not for all!

nilrem_2 · 8 January 2018 at 2:57PM

Just a heads up for anyone who uses Sainsburys Esaver account which pays fairly decent rates especially if over £15k in the account.

I opened a small account just 3 weeks ago paying 0.87% (only£5k in so far) and noticed yesterday the rate increased to 1.21% for the same amount. on checking I noticed my account was stuck at 0.87% so I phoned Sainsburys bank and they advised me that if rates reduce your rate goes down but if rates increase hard luck!

So do check your account and if you want the higher rate the only way to get it is to open a new account and transfer the money across, that's the only way to get the new rate according to my phone call.

The new rates are
1k to 15k = 1.21%
15k to 30k = 1.26%
30k to 500k = 1.31%

Neil_Jones · 8 January 2018 at 7:02PM

This isn't unusual and doesn't only apply to Sainsburys. Tesco Internet Saver works in the same way. You signed up for the account offering 0.87% so you get 0.87%. Normally what happens is the bank issues a new Issue of the account with a different rate. So you may have signed up with Issue 1 for example at 0.87%, but rather than boosting its rate, what usually happens is Issue 2 comes along at 1.21% and new customers get that rate while those with Issue 1 stay at 0.87%.

nilrem_2 · 8 January 2018 at 9:04PM

Neil_Jones wrote: »

This isn't unusual and doesn't only apply to Sainsburys. Tesco Internet Saver works in the same way. You signed up for the account offering 0.87% so you get 0.87%. Normally what happens is the bank issues a new Issue of the account with a different rate. So you may have signed up with Issue 1 for example at 0.87%, but rather than boosting its rate, what usually happens is Issue 2 comes along at 1.21% and new customers get that rate while those with Issue 1 stay at 0.87%.

Obviously I knew all that, I have been active in the savings forum for well over 10years so I am aware of how financial institutions operate, however I posted my comment as I felt it might be of interest to any other savers who use Sainsburys who might not be fully aware even that rates had increased or that they could open a fresh one and move across.

EdSwippet · 8 January 2018 at 9:11PM

nilrem wrote: »

... I felt it might be of interest to any other savers who use Sainsburys who might not be fully aware even that rates had increased or that they could open a fresh one and move across.

It was. I have just this minute finished doing exactly that after reading your post. Thank you :-)

talexuser · 8 January 2018 at 9:32PM

Ditto... just moved over my Power of Attorney account for my Mother over the phone.

nilrem_2 · 8 January 2018 at 10:23PM

Well I did not expect that to happen!
I applied for a new esaver this morning and when I logged on tonight to see if it was up and running I found that it was and that they had already transferred the money from the old one to the new one without me asking? On the phone they told me I had to do the transfer.

The other thing is that the new account is showing an interest rate of just 0.50% rather than the 1.31% it should be but I assume that will correct itself tomorrow, I have a feeling it updates after midnight.

talexuser · 9 January 2018 at 11:55AM

Phoning Monday evening they said the account should be running Wednesday, just because in my case they have to run it through the Power of Attorney dept to say all the id stuff had already been done. Then the balance would be transferred but interest would sit in the old account so you just have to transfer it over and then phone to close the old account.

Sainsburys increase rates on esaver but not for all!

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