Sainsbury's relaunches eSaver Special at lower rate

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Sainsbury's Bank has re-launched its popular eSaver Special savings account, paying 1.30% AER.

The supermarket bank had closed its top-paying easy-access account in mid-December, when it was paying 1.55% before tax. That meant it was paying 1.24% to basic-rate taxpayers and 0.93% to higher-rate payers.

While the eSaver Special is back, the rate has fallen to 1.04% after tax for a basic-rate payer, or 0.74% for a higher-rate payer.

There's no teaser rate and between £1,000 and £100,000 can be deposited in the account. Interest will be paid annually and the account can be opened and managed online but deposits can also be made with SaveBack in Sainsbury's stores.

The account is currently beaten by the Britannia Select Access Saver 5, paying 1.65% before tax, according to

After tax, that leaves a basic-rate payer with a rate of 1.32% and a higher-rate payer with 0.99%.

The minimum deposit is £1,000, the same as the Sainsbury's account, but the maximum deposit is only a quarter of the supermarket bank's at £25,000. Interest is paid annually, there is no teaser rate and the account cannot be opened or managed online.

There are some withdrawal conditions in that a bonus is payable provided no more than four withdrawals are made per year.

If five or more are made the interest rate will be 0.10% gross 1 January in the following year.

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