Fixed Rate Saver | Sainsbury's Bank

What is a Fixed Rate Saver?

A Fixed Rate Saver lets you save money for a set period with a fixed interest rate. The interest rate won’t change during the term. This means you will know exactly how much interest you’ll earn by the time the account matures. Any funds you deposit will be locked in for the duration of the term. Any interest earned on your account is not added to your Fixed Rate Saver but paid to your nominated account either monthly or annually.

Our Fixed Rate Saver accounts offer fixed interest rates over a longer period making them a great way to invest your money if you don’t need instant access to it.

Find out more about how our Sainsbury’s Bank Fixed Rate Saver account work before you apply below.

Make the most of your savings

Our Fixed Rate Saver offers you a fixed rate of interest for 1 - 5 years, so you can enjoy the peace of mind of knowing exactly what return you'll get on your money.

Account name

Fixed Rate Saver

What are the interest rates?

The Interest Rate (AER)* is payable as follows:

Term	Balance	*AER/gross p.a.
1 year	£5,000 - £1,000,000	4.90%
2 years	£5,000 - £1,000,000	4.20%
3 years	£5,000 - £1,000,000	4.10%
4 years	£5,000 - £1,000,000	3.50%
5 years	£5,000 - £1,000,000	3.50%

Interest is calculated daily and paid monthly, or on the anniversary of account opening, to your nominated account.

You can check the interest rate applicable to your account on any day by visiting sainsburysbank.co.uk and logging into your online banking.

If your interest rate increases because you paid in more money the rate will update overnight online. But interest will be applied at the rate applicable to your new balance, from the day we receive your payment.

Can Sainsbury’s Bank change the interest rate?

Rates are fixed until the maturity date. For further information please refer to condition 3.2 of our Fixed Rate Saver Terms and Conditions.

What would the estimated balance be at the end of the term based on a £5,000 deposit?

Term	Based on an deposit of	Projected return
1 year	£5,000	£5,245.00
2 years	£5,000	£5,420.00
3 years	£5,000	£5,615.00
4 years	£5,000	£5,700.00
5 years	£5,000	£5,875.00

Please remember that any interest earned on your account is paid to your nominated account either monthly or annually and is not added to your Fixed Rate Saver. This example is provided as an illustration only and does not take into account individual customers' circumstances.

How do I open and manage my account?

You can open your Fixed Rate Saver by applying online.
You can manage your account via Online Banking or by contacting us.
You must be aged 18 or over and be a UK resident to open a Sainsbury's Bank savings account.
The minimum amount you can deposit in the account is £5,000.00.
The maximum amount that can be held in the account is £1,000,000.00.
You must invest a minimum of £5,000 within 30 days of account opening to ensure that your account remains open and that you benefit from the advertised rate of interest.
No further deposits may be made after the first 30 days of account opening.

Can I withdraw money?

You will not be able to make any withdrawals from this account until the fixed rate period ends.

We will notify you 14 days before the fixed rate period has ended and ask you what you would like us to do with your money. You will be able to open another Sainsbury's Bank savings account and have your funds deposited into this new account, or we will be able to transfer your money to a current account held in your name with another provider. If you do not provide us with an instruction, your funds will be transferred to our Reserve Account, and we will inform you of the interest rate on that account.

Additional information

You will not be able to close or switch your Fixed Rate Saver before its maturity date.

We will write to you 14 days prior to maturity to advise you of the options available to you.

Interest is paid gross. You may need to pay tax on any interest that exceeds the personal savings allowance. Please contact HMRC if you need more information.

Apply now

Next steps

Once your account is opened you can deposit into your Fixed Rate Saver in three ways:

Transfer money from your current bank account;
Send us a cheque, made payable to yourself, to Sainsbury's Bank, PO Box 4954, Worthing, BN11 9YY; or
Transfer funds direct from your existing Sainsbury's Bank savings account

Key benefits

A fixed interest rate for 1 - 5 years
Deposit between £5,000 and £1,000,000 within 30 days of opening your account
Choose between paid monthly or annual interest

Additional benefits

Manage your account 24/7 with online banking
Available to new and existing customers
Apply in minutes

Current products available

Length of Term	For balances between	AER/tax free
1 year	£5,000 - £1,000,000	4.90%
2 years	£5,000 - £1,000,000	4.20%
3 years	£5,000 - £1,000,000	4.10%
4 years	£5,000 - £1,000,000	3.50%
5 years	£5,000 - £1,000,000	3.50%

These rates are subject to change and may be withdrawn at any time. Rates effective from 20 March 2024. Interest is calculated daily and paid monthly/annually depending on your choice of options. Interest on this account is paid directly into your nominated account and therefore not compounded.

This offer is subject to a limit of 1 Fixed Rate Saver account per person per term in any 30 day period. Interest is calculated daily and paid monthly/annually, depending on your choice of options, to your nominated account.

We must receive your full deposit within 30 days of opening your account. We can't accept any deposits after 30 days. You cannot make withdrawals from this account at any time and you cannot close it during the term. If you think you may need access to your funds during the term a fixed deposit may not be the right savings product for you. Why not check out our full range of savings accounts which may better suit your needs.

Apply for your savings account now

It's quick and easy to apply for a Sainsbury's Bank Fixed Rate Saver.

Please note, to set up an account you need to be:

a UK resident; and
18 years old or over.

The tax treatment or rate of interest payable depends on the individual circumstances of each customer and may be subject to change in the future.

Apply now

Next steps

Once your account is opened you can deposit into your Fixed Rate Saver in three ways:

Transfer money from your current bank account;
Send us a cheque, made payable to yourself, to Sainsbury's Bank, PO Box 4954, Worthing, BN11 9YY; or
Transfer funds direct from your existing Sainsbury's Bank savings account

How is your interest paid

Interest is calculated daily and either paid monthly to your nominated account on the monthly anniversary of the account opening (if this date falls on a weekend, then the next business day) or paid annually on the anniversary of the date when the account was opened. Interest is paid gross, there is no income tax deducted.

Access to your money

No withdrawals or additional deposits are allowed once your Fixed Rate Saver is open and early closure is not permitted.

What happens at maturity?

We will write to let you know that your Fixed Rate Saver is maturing, you'll then be given the choice to either:

Re-invest into another Fixed Rate Saver (if one is available at that time).
Transfer your funds into your nominated account or to another Sainsbury's Bank savings account. If you choose to send your payment by the BACS service, which is free, your account will be debited immediately and the funds will take up to 3 business days to arrive, which means you could potentially lose up to 3 days interest on those funds.
Transfer some of your maturing Fixed Rate Saver into your nominated account and some to a new Fixed Rate Saver (if one is available).

If we do not hear from you by maturity we will automatically transfer your maturing Fixed Rate Saver into a Sainsbury’s Bank Reserve Account, and we will let you know the interest rate on this account.

Easy to manage

You can use our secure telephone service or online banking service to check your balance and transactions or you can contact us.

Protection against money laundering

Before your account is fully active we'll need to verify your identity. This is to comply with money laundering regulations. In most cases we can do this electronically but we may need you to provide some documents to help us.

*Telephone calls may be recorded for security purposes and monitored under our quality control procedures. Calls are free from a landline and from a mobile when calling from the UK.

It takes minutes to apply for a Sainsbury's Bank Fixed Rate Saver account

You're eligible to apply if you:

Are resident in the UK
Are 18 years of age or older

To apply you will need the following information:

Personal details - date of birth, address, nationality, email address, occupation and NI number

Apply quickly and easily

Apply online
You must fund your Fixed Rate Saver with the minimum deposit within 30 days of opening it.

Applying for a joint account

You will be required to provide the above information for both parties to complete your application form.

This offer is subject to a limit of 1 Fixed Rate Saver account per person per term.

Applying for an In Trust/Power of Attorney account?

In Trust/Power of Attorney accounts cannot be opened online, if you are wanting to open an In Trust/Power of Attorney account please call us on 0800 028 5269 and one of our colleagues will be happy to help you.

Have you read the terms & conditions?

Before applying please read our Terms and Conditions and our Privacy Statement.

Apply now

Sainsbury's Fixed Rate Saver terms and conditions

Please read our Terms and Conditions and our Privacy Statement.

You can download and print the terms and conditions document with Adobe Acrobat Reader - Get Adobe Acrobat Reader

Fixed Rate Saver Account conditions

Your Fixed Rate Saver will be opened on your account opening date.
Interest is fixed on the account opening date. Interest starts to accrue once cleared funds are paid into your Fixed Rate Saver until the end of the term. If you make your deposit into the account after the account opening date, you will receive interest from the date of deposit until the end of the term and not from account opening date. The term over which you actually receive interest may therefore be shorter than the full term of the product.
You must fund your account within 30 days of account opening. If you do not fund your Fixed Rate Saver we will close your Fixed Rate Saver after 30 days.
You may only close your Fixed Rate Saver on its maturity date.

Gross interest is the interest rate paid with out the deduction of income tax. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if paid and compounded once each year.

Important Information

Other Savings accounts

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Customer Support

Financial Services Compensation Scheme

All of our savings products are covered by the Financial Services Compensation Scheme (FSCS). For further information about the compensation provided by the FSCS visit www.fscs.org.uk opens in new window

Protecting your money - A guide from the FSCS [PDF, 557Kb] opens in new window

Important Information

The tax treatment or rate of interest payable depends on the individual circumstances of each customer and may be subject to change in the future.

Savings accounts are available from Sainsbury’s Bank to UK residents aged 18 years old or over. Sainsbury’s Bank reserves the right to alter rates at any time.

Gross interest is the interest rate paid without the deduction of income tax. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if paid and compounded once each year.

Frequently asked questions

How does a Fixed Rate Saver work?

A Fixed Rate Saver account lets you save money for a set period with a fixed interest rate. Any money you deposit into a Fixed Rate Saver is locked in for the duration of the term, meaning you can’t withdraw it. The interest rate won’t change during the term, so you will know exactly how much interest you’ll earn by the time the account matures.

Is opening a Fixed Rate Saver worth it?

It depends on personal choice and circumstances. However, opening a fixed saver can be a great way to invest your money. It’s important to do your research and look at other saving options before opening an account. You won’t be able to access any money deposited into your account for the duration of the term. So, if you think you might need to be able to access your funds, an alternative savings account might be a better option.

Can I withdraw money from my Fixed Rate Saver?

No, you can’t make withdrawals from a Fixed Rate Saver at any time and the account can’t be closed during the term, except in the event of your death.

Does a Fixed Rate Saver have a high interest rate?

Yes, a Fixed Rate Saver has a higher interest rate when compared with other savings accounts.

How can I manage my Fixed Rate Saver?

You can use our secure Telephone service or Online Banking service to check your balance and transactions. Alternatively, you can get in touch with us for assistance.