Bank with Sainsbury’s? NatWest is taking over – why you may need to act

Sainsbury’s Bank’s savings and borrowing products – savings accounts, loans and credit cards – will be run by NatWest from 1 May. Customers with substantial savings in both banks may need to move their money to keep it protected.

In June 2024, NatWest announced it was buying up Sainsbury’s Bank’s retail banking assets and liabilities, meaning its credit card, unsecured personal loans and savings accounts businesses.

It came after Sainsbury’s Bank said in January it was pulling out of those markets. Sainsbury’s Bank is keeping its insurance and travel money services, which will continue to be available as they are today and are not included in the NatWest transfer.

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The NatWest-Sainsbury’s Bank deal was officially finalised on 16 April, with the date for the moving over of the Sainsbury’s Bank business to NatWest set for 1 May.

‘I have a Sainsbury’s Bank savings account. What should I do?’

Sainsbury’s Bank has said interest rates on savings accounts won’t change as a result of the transfer to NatWest.

However they may change for other reasons, for example to reflect any movements in the Bank of England base interest rate.

If there are any proposed changes to your accounts in the future, they will be made by NatWest after 1 May 2025, and you’ll be given at least 60 days’ notice.

However this could be a good opportunity to compare the rate you are currently getting on your Sainsbury’s Bank account to see if you could get a better deal elsewhere. The Santander Edge Saver easy access savings account, for example, which tops the Moneyfacts table, is paying interest at 6% – way above the current inflation rate of 2.6%. We look at the best easy access savings rates in a separate article.

Sainsbury’s Bank has also said there are no immediate changes to how you use and access your accounts.

Sainsbury’s Bank will continue to be your key point of contact for any questions relating to your accounts, including any new or existing complaints, disputes or claims. It will let you know when any of that changes.

But – and it’s a big but – if you have more than £85,000 in savings across both your Sainsbury’s and NatWest accounts, you should consider moving some of that cash into another banking group so it stays protected if something goes wrong at NatWest.

How is money in my Sainsbury’s Bank savings account protected?

Savings in bank accounts in the UK are protected by the Financial Services Compensation Scheme (FSCS), up to £85,000 per person, per institution if that institution collapses.

Per institution is the important bit for savings account customers of Sainsbury’s Bank and NatWest, following the transfer of business on 1 May.

This is because, in the event NatWest fails, customers with savings accounts with both banks will only be protected up to £85,000 – even if they have more than that across multiple accounts.

As far as the FSCS is concerned, from 1 May, your accounts are with one institution, NatWest, so you only get the protection of a single institution, the £85,000 limit, even if you are still transacting with the brand Sainsbury’s Bank.

This also includes account holders with Ulster Bank, which is already part of NatWest.

So if you have more than £85,000 in savings accounts across any of those three brands – NatWest, Sainsbury’s Bank and Ulster Bank – you may want to spread some of that money out into accounts with entirely separate banks so you still benefit from full FSCS protection.

Can I still access my accounts via the Sainsbury’s Bank app?

There will be no immediate changes to how you access the Sainsbury’s Bank website, mobile app and online banking, or how you can contact Sainsbury’s Bank.

You will be contacted by NatWest in the coming months to transfer you over to their systems.

Any direct debits or standing orders will remain in place, and how you spend and make payments won’t immediately change, likewise how you transfer money to and from savings accounts.

The card you use, including your PIN, 0% promotional offers and use of Apple Pay and Google Pay will be the same for now, and you can collect Nectar points with your credit card as normal.

For Sainsbury’s loan customers, your personal loan repayment amount, date and rate will remain the same.

If your account is in arrears, any agreement you have in place about repayment of debt, for example repayment plans, will continue on your existing account on 1 May 2025.

You should keep making the payments you’ve agreed to. If any changes need to be made to your support arrangements in the future, NatWest will let you know.