Sainsbury's winding down their banking business

INTER_estED_OK

We have a 5 year fixed rate savings account paying interest monthly. As I read their info, once our account is transferred, they will no longer pay interest monthly but add it to the account and pay out on maturity in 3 years time. This is a top up for our state pension and will create great hardship for us and is contrary to the terms and conditions we signed up for. There would also be tax implications with interest paid as a lump sum. We have the option to close the account early but the 4.9% interest is no longer available anywhere else. The best I can see elsewhere is 4%. Can they do this.

Olenna

INTER_estED_OK said:

We have a 5 year fixed rate savings account paying interest monthly. As I read their info, once our account is transferred, they will no longer pay interest monthly but add it to the account and pay out on maturity in 3 years time. This is a top up for our state pension and will create great hardship for us and is contrary to the terms and conditions we signed up for. There would also be tax implications with interest paid as a lump sum. We have the option to close the account early but the 4.9% interest is no longer available anywhere else. The best I can see elsewhere is 4%. Can they do this.

They can only do things that Sainsbury's Bank as a standalone entity could do. 

Is this something that they were already allowed to do or was it fixed (for the full duration) when you took out the product? 

wmb194

INTER_estED_OK said:

We have a 5 year fixed rate savings account paying interest monthly. As I read their info, once our account is transferred, they will no longer pay interest monthly but add it to the account and pay out on maturity in 3 years time. This is a top up for our state pension and will create great hardship for us and is contrary to the terms and conditions we signed up for. There would also be tax implications with interest paid as a lump sum. We have the option to close the account early but the 4.9% interest is no longer available anywhere else. The best I can see elsewhere is 4%. Can they do this.

On MoneyFacts I can see some monthly options for three year fixed rate savings bonds at c.4.4%:

https://moneyfactscompare.co.uk/savings-accounts/3-year-fixed-rate-bonds/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate