Sainsbury’s Bank has launched a new account which on the face of it is paying a pretty competitive, straightforward rate of interest – 2.75% gross AER. However, on closer inspection whilst this rate is true, it’s only on balances of between £1,000 and £100,000. If your balance falls below £1,000 or over £100,000 the rate will fall to just 0.50% on the WHOLE balance. No doubt this could leave many savers receiving much less interest than they had originally anticipated and hoped for, if they don’t keep a close eye on the balance. Certainly one to watch out for!
Update: Rate has increased to 2.90% gross/AER from 18.4.12.