NatWest is taking over, so you might need to take action Bank with Sainsbury's?

The change may result in the loss of significant financial protections for customers who have significant savings in both NatWest and Sainsbury's Bank accounts

NatWest will take over the management of Sainsbury's Bank's credit cards, loans, and savings accounts as of May 1. It might be necessary for customers who have sizable savings in both banks to transfer their funds in order to protect them.

NatWest announced in June 2024 that it would acquire the retail banking assets and liabilities of Sainsbury's Bank, including its credit card, unsecured personal loan, and savings account businesses.

It followed the announcement by Sainsbury's Bank in January that it was exiting those markets. The NatWest transfer does not include Sainsbury's Bank's insurance and travel money services, which will remain accessible as they are now.

On April 16, the NatWest-Sainsbury's Bank agreement was formally completed, and on May 1, the Sainsbury's Bank operations will transfer to NatWest.

Sainsbury's Bank is where I have a savings account.

How should I proceed? Savings account interest rates won't change as a result of the move to NatWest, according to Sainsbury's Bank.

Other factors, such as changes in the Bank of England base interest rate, could cause them to alter.

After May 1, 2025, NatWest will make any proposed changes to your accounts, and you will be notified at least sixty days in advance.

To find out if you could get a better deal elsewhere, you might want to compare the rate you currently receive on your Sainsbury's Bank account. For instance, the Santander Edge Saver easy access savings account, which ranks first in the Moneyfacts table, pays interest at 6%, which is significantly higher than the current inflation rate of 2.6 percent. In a different piece, we examine the top easy access savings rates.

Additionally, according to Sainsbury's Bank, there won't be any changes to your account access or usage going forward.

For any inquiries about your accounts, including any recent or past grievances, disagreements, or claims, Sainsbury's Bank will remain your primary point of contact. When any of that changes, you'll be notified.

However, if you have over 85,000 in savings from both your NatWest and Sainsbury's accounts, you might want to think about transferring some of that money to another banking group to keep it safe in case something goes wrong at NatWest.

How is the money in my savings account at Sainsbury's Bank protected?

In the UK, the Financial Services Compensation Scheme (FSCS) protects bank account savings up to 85,000 per person and per institution in the event of an institution's failure.

Per institution is the crucial factor for Sainsbury's Bank and NatWest savings account clients after the business transfer on May 1.

This is due to the fact that customers who have savings accounts with both banks will only be protected up to 85,000 in the event of a NatWest failure, even if they have that much spread across several accounts.

In terms of the FSCS, even though you are still using the Sainsbury's Bank brand, as of May 1st, your accounts are with NatWest, which means you only receive the protection of a single institutionthe 85,000 limit.

Also included in this are customers of Ulster Bank, which is already a member of NatWest.

Therefore, in order to maintain full FSCS protection, you might want to spread out some of your more than 85,000 in savings accounts across any of those three brandsNatWest, Sainsbury's Bank, and Ulster Bankinto accounts with completely different banks.

Is it still possible to access my accounts through the Sainsbury's Bank app?

The Sainsbury's Bank website, mobile app, online banking, and contact information won't be altered anytime soon.

In order to move you to their systems, NatWest will get in touch with you in the upcoming months.

The way you spend and make payments, as well as how you move money to and from savings accounts, won't change right away, and any direct debits or standing orders won't change either.

You can still accrue Nectar points using your credit card as usual, and your card will remain the same for the time being, including your PIN, 0% promotional offers, and use of Apple Pay and Google Pay.

The amount, date, and rate of repayment for personal loans from Sainsbury's will not change.

Any agreements you may have in place regarding debt repayment, such as repayment plans, will remain in effect on your current account on May 1, 2025, if your account is past due.

As agreed upon, you should continue to make the payments. NatWest will notify you in the event that your support arrangements need to be modified in the future.