10 hours Ago By Adele Cooke
SAINSBURY’S Bank has issued a major update to its 1.9million customers as it prepares to stop offering banking services.Last June the major supermarket bank announced proposals to transfer its personal loans, credit cards and savings accounts to NatWest.
Sainsbury’s Bank has confirmed the date the transfer is expected to take effectSainsbury’s Bank has now confirmed that this transfer is expected to take effect on May 1, subject to High Court approval.A court hearing is set to take place on April 15, 2025.If approved, personal loans, credit cards and savings accounts will be transferred to NatWest by the end of the year.
There will be no immediate changes to how customers use and access their accounts.All insurance and travel money services will continue to be available as they are not included in the proposed transfer.The news comes after Sainsbury’s announced that it would wind down its banking division to focus on its retail business in January 2024.
NatWest agreed to purchase Sainsbury’s Bank in June 2024.Then in August Sainsbury’s Bank pulled its credit card and loans for new customers ahead of the takeover.The bank stopped accepting applications for new and existing customers.
It previously offered a range of personal banking and insurance products including credit cards, personal loans, car insurance and pet insurance.What does this mean to me?The way that Sainsbury’s Bank customers use their accounts will not change at present.Sainsbury’s Bank said there will be no immediate changes to how you access its website, mobile app and online banking.
You can still contact Sainsbury’s Bank in the same way.All direct debits and standing orders, how you spend and make payments and how you transfer money to and from savings accounts will remain unchanged.HISTORY OF SAINSBURY'S BANKSAINSBURY'S Bank, founded in 1997, started as a joint venture between J Sainsbury PLC and Bank of Scotland, a subsidiary of Lloyds Banking Group.
The supermarket took full ownership of the business back in 2014 for £248million.However, six years later, new (and remaining) chief executive Simon Roberts announced the supermarket would embark on a “food first” strategy to refocus on its core retail offering and improve returns.Last summer, Sainsbury’s Bank offloaded its £479million mortgage book to Co-op Bank.
The bank has about 1.9 million active accounts and offers a range of banking products to retail customers only, including credit cards, savings, personal loans, general insurance and travel money.It also operates a network of ATMs and in-store travel bureaux.
In June 2024, NatWest announced a deal to purchase Sainsbury’s Bank.Sainsbury’s Bank will pay out £125million to NatWest and £250million to Sainsbury’s as part of the agreement.You can still collect Nectar points with your credit card.
There will be no immediate change to the card you use, your PIN, 0% promotional offers and the use of Apple and Google Pay.Any changes to customers’ accounts will be made by NatWest after May 1, 2025.Customers will be given at least 60 days’ notice of these changes.
In a letter to customers Sainsbury’s said it believes the transfer will meet customers’ financial needs and will give them access to more products and services.It added that accounts will be moved onto NatWest systems “towards the end of 2025”.The bank said that NatWest is working to ensure that, where possible, your new account will be the same as your existing one.
This will include the overall amount of interest charged for credit cards, the amount of interest earned for savings and any promotional offers.If you do not want your account to be transferred to NatWest then you can close it and pay back any outstanding balance or withdraw funds.Credit cardsYour credit card number will stay the same and there will be no change to your credit card limit, interest rate and minimum payment requirements.
Any 0% offer in place will remain until the end of the promotional period.There will also be no change to how you collect Nectar points and any direct debits you have set up.LoansIf you have a loan with Sainsbury’s Bank then it will become a NatWest one and you will be sent a new sort code and account number.
NatWest will be in touch with you nearer the time to let you know what that is.There will be no change to the amount you pay each month, as long as you do not have any outstanding payments when your account is transferred onto the NatWest system and you pay on time after that.The date of your monthly repayment, direct debits, amount you have left to pay and terms of your loan should be unchanged.
Meanwhile, the amount of interest charged for personal loans will remain the same as long as you pay your loan in line with your agreement.If customers have any outstanding payments when their account is transferred to the NatWest system or payments are late after that then there may be a slight increase in the amount of interest you are charged.You should continue to make your payments in full and on time each month as any late payments could impact your credit score.
But after your account is transferred to NatWest you will no longer be charged a fee if your payment is late.Savings accountsOnce your accounts have moved to NatWest’s systems your savings account will become a NatWest one.You will be sent a new sort code and account number when your account is set up.
NatWest will contact you nearer the time to let you know what that is.If you have a Sainbury’s Bank ATM card you will be sent a new NatWest ATM card and PIN.You will still be paid the same amount of interest on your savings account and in some cases the interest rate may increase.
If you have a fixed-term account and your interest rate is lower than NatWest’s lowest rate then it will allow you to access your funds early.It will pre-pay the interest you would have earned if your account stayed open for its original term.NatWest will contact you at least 60 days in advance to let you know if this applies to your accounts.
If you have a Defined Access Saver and your interest rate is lower than NatWest’s lowest rate then your account will move to a NatWest Primary Savings account and you will have access to your money whenever you need it.In all other cases your account will be moved to a NatWest Defined Access Saver and you will continue to be able to withdraw your money at least three times.NatWest may also change the frequency with which it pays any interest you have earned.
For example, you may be paid interest monthly instead of annually, or vice versa.NatWest will be in touch at least 60 days in advance of any changes being made.Online bankingOnce customers are transferred to NatWest they will not be able to use Sainsbury’s Bank’s online banking and mobile app to access their accounts.
They will need to take action to register their accounts using NatWest’s online banking and mobile app.NatWest will be in touch with information on what to do..
