Sainsbury's Bank ends savings accounts, transfers to NatWest

Sainsbury’s Bank, a major bank with nearly two million customers, will stop accepting new savings accounts. They also won’t accept applications from existing customers. This change is part of a plan to transfer their banking products to NatWest. The bank announced that all savings applications submitted before March 13, 2025, will still be processed. Existing customers can continue accessing their accounts as usual. They can check balances, transfer money, and manage their accounts online until the transition to NatWest occurs. Once the transfer happens on May 1, 2025, existing customers will receive new account details. They will also get a new NatWest ATM card. The interest rates on savings accounts will remain the same, and some customers might even see an increase. NatWest will inform customers at least 60 days before any changes take effect. Sainsbury’s Bank has a long history dating back to 1997. The supermarket chain fully took over the bank in 2014. Earlier, the bank sold its mortgage business and shifted its focus back to retail. The upcoming transfer deal has been valued at £375 million. Customers with cash ISAs will now have NatWest as their ISA Manager. While the management will change, customers can still keep contributing to their ISAs. Those wishing to opt out from the transfer must act quickly and submit requests by March 20, 2025. For those looking for competitive savings rates, it’s advised to use price comparison websites. This can help find accounts with interest rates that beat inflation, ensuring savings are working effectively.