Sainsbury's increases Internet Saver rate

Sainsbury's Finance is to increase the interest rates on its Internet Saver account by 0.6 per cent.

The rate on the account will stand at 2.6 per cent and Sainsbury's has pledged that for the next 12 months customers who took the account from April 14th and April 30th will see interest rates standing at least two per cent over the Bank of England base rate.

Sainsbury's is also offering the 2.6 per cent rate on its Internet Saver with the two per cent above base rate guarantee to all customers who open an account between now and June 8th 2009.

Balances must be between £5,000 and £100,000.

If a withdrawal is made during the first 12 months of the account being opened, the interest rate reverts to the account's standard rate of interest, currently 0.75 per cent gross AER.

Helen Cook, head of savings at Sainsbury's Finance said: "We're beginning to see movement again in the savings market with increased competition and we wanted to make sure we responded to this by giving our customers a boost with a competitive instant access savings offer."