Sainsbury’s Bank customer? NatWest takes over this week – here's what it means for savers and borrowers

The supermarket giant announced in January 2024 that it would stop providing most banking services to new customers and focus on its retail businesses, such as its grocery stores, Argos and Habitat. It had already stopped offering new mortgages in 2019, with existing mortgage holders transferred to the Co‐operative Bank.

The deal for NatWest to buy Sainsbury's Bank's customers officially completed this month following approval from regulators and the High Court. It'll see around 1 million accounts moved over to NatWest.

Sainsbury's Bank saver? Rates shouldn't change, but check your savings are still protected

From Thursday 1 May:

1. Most Sainsbury's Bank savers won't see any immediate rate change. Though rates could change in future. However, see this as a good spur to check whether you're earning enough in interest now. Sainsbury's Bank has already removed its rates online, so we can't check how they compare – but see our Top savings and Top cash ISAs guides for our current best buys, including up to 5.07% easy-access.

2. If you've already got substantial savings with NatWest, and Ulster Bank too, it's important to understand your savings safety protection has changed. All UK regulated savings get the usual up to £85,000 per person, per institution savings safety protection. This means in the unlikely event the bank or financial institution went bust, your capital and interest is protected up to that amount.
   
   The crucial point here though is "per institution". Currently, Sainsbury and NatWest are separate institutions. Yet they become one on 1 May. This means the £85,000 limit will be shared not only across the two brands, but also by Ulster Bank, which is already part of the NatWest Group. This means you'll only get a combined £85,000 safe savings limit across the three brands.
   
   So if this now means you've over £85,000 in them combined, you may want to move the excess to another savings provider to get maximum protection (the only exception being if you've had a life event where you can be protected for up to £1 million for six months).
   
   It's worth noting that Coutts and Royal Bank of Scotland (RBS), while also both part of the NatWest Group, each have their own separate up to £85,000 protection per brand. See How to save in 100% safety. You can also use our tool to Check which banks are linked.

Your Sainsbury's Bank products and services remain as normal for now, but you'll be transferred over later this year

All of the products and services being taken over by NatWest will remain under the Sainsbury's Bank brand for now, and you can continue to use them as normal. You can also contact Sainsbury's Bank customer services with any queries or complaints as usual.

However, Sainsbury's Bank savings, loans and credit card customers are expected to become NatWest customers "towards the end of 2025".

After the move takes place, you'll no longer be able to use Sainsbury's Bank's online banking and mobile app. You'll be sent instructions on how to access your account(s) using NatWest's digital services ahead of time.

Sainsbury's Bank said savings rates and credit card interest rates will be kept the same "where possible" once customers are moved to NatWest. Personal loans are typically fixed-rate for the length of the term anyway, so as long as you continue to pay in line with your loan agreement, NatWest won't change them (see our guide for What to do if you're struggling with loan repayments).

Insurance and travel money stay with Sainsbury's Bank

The deal with NatWest doesn't include insurance, travel money, or Sainsbury's ATMs which were sold to ATM provider NoteMachine. It also doesn't affect the Argos store card, which is currently operated by the credit card provider NewDay.