Guide to opening a savings account
Whether it’s a holiday, a new car, or a mortgage deposit, there’s always something to save for. From Cash ISAs to Easy Access Accounts, it’s easy to open a savings account and watch your money grow.
Discover how to open a savings account and earn interest on your money in this helpful guide.
How to open a savings account
Opening a savings account is simple and only takes a few steps. First, compare rates and terms to find the right provider for you. Then contact your chosen provider for the next steps.
Providers that you can open a savings account with include:
- Banks
- Credit unions
- Building societies
- Stockbrokers
- Friendly societies
- Peer-to-peer lending organisations
- Crowdfunding companies
- Other financial institutions
It’s just as easy to set up a savings account online with Sainsbury’s Bank. The application process takes just 10 minutes. Simply enter your personal details, choose a joint or single application, and enter your Nectar card information if you’re a member.
What type of savings account should I open?
There are several types of savings accounts – each with different terms, rates, and ways to submit and withdraw your money.
The type of account you choose will depend on your needs, such as the amount of money you wish to save, whether you require instant access and more.
Defined Access Saver
Designed for savers who only make occasional withdrawals. Access your money up to three times a year and earn a higher interest rate. You can open a Defined Access Saver with as little as £1 and a maximum deposit of £2,000,000. Money can be paid in as often as you wish, but withdrawing more than three times within the same year might reduce your interest rate.
Learn more about the Defined Access Saver from Sainsbury’s Bank.
Variable Rate Cash ISA
A type of cash ISA that pays you tax-free interest at a variable rate, meaning rates can change depending on the Bank of England base rate and a number of other factors. Open your Variable Rate ISA account with just £1 and earn a rate of 1.00-4.16% AER per year. You can pay in or withdraw money as you please within the £20,000 limit per tax year.
Learn more about Variable Rate Cash ISAs from Sainsbury’s Bank.
eSaver Special
An eSaver Special account is opened and managed purely online. You can open an eSaver Special account with as little as £1. However, this must be paid in within the first 60 days of the savings account opening to keep it active. Unlimited withdrawals can be made with no notice period, and you can save up to £2,000,000.
Learn more about eSaver Special from Sainsbury’s Bank.
Extra Saver
With an Extra Saver account, you can open your account with just £1 and earn up to 1.00% AER on balances of £1 - £500,000. Similar to eSaver Special, you can open and manage your account online, and there are no withdrawal restrictions.
Learn more about Extra Saver from Sainsbury’s Bank.
Fixed Rate Saver
A Fixed Rate Saver requires you to lock away your savings at a fixed interest rate for a set period of time – usually between one and five years. That means the interest rate won’t change during that term – perfect for investing your money if you don’t need instant access. This account can be opened with a minimum deposit of £5,000 and a maximum of £1,000,000.
Learn more about Fixed Rate Savers from Sainsbury’s Bank.
Fixed Rate Cash ISA
Similar to a Fixed Rate Saver, a Fixed Rate Cash ISA lets you lock the interest rate for a set period of time (between one and five years). Interest rates are typically more competitive with a Fixed Rate Cash ISA, as you’re putting your money away for longer. If you choose to withdraw the full balance before maturity, you will incur a charge, and you'll also need to close the account. Please be aware that partial withdrawals are not an option.
Learn more about Fixed Rate Cash ISAs from Sainsbury’s Bank.
What do I need to set up a savings account?
When you apply for a savings account with Sainsbury’s Bank, you are required to provide some personal information and documentation. This includes:
- Your email address and contact number
- Proof of addresses and postcodes for the last three years
- Your National Insurance number
- Tax Identification Number(s) – for non-UK tax residents.
Keep in mind that you must not have another ISA with Sainsbury’s Bank in the same name. You can open your savings account with just £1 for all accounts except for a Fixed Rate Saver, which requires a minimum deposit of £5,000.
Can I open a savings account online?
For ease and convenience, you can open a savings account online from the comfort of your home. Just visit the Sainsbury’s Bank website and follow the on-screen instructions. You could apply for a savings account in less than 10 minutes.
Compare our range of savings accounts and apply today.
Frequently asked questions
Can I open just a savings account?
Yes, you can open a savings account on its own, whether it’s with your existing bank/credit union or a separate one altogether. It can be beneficial to have a savings account in conjunction with your current account. This could allow you to transfer money instantly.
How much money should I keep in my savings account?
The money in your savings account varies based on your goals and circumstances. Aim for an emergency fund covering 3-6 months of living expenses. You can also save for specific goals, but balance emergency funds and financial objectives. Consider consulting a financial advisor for the right strategy.