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Supermarket price war enters finance arena

Supermarket price war enters finance arena

Category: Savings

Updated: 27/08/2009
First Published: 26/08/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The price war between the UK's supermarkets has broken out into the finance world, meaning savers could now benefit from increased rates as well as bargains at the checkout.

The battle between the supermarkets has heated up in recent months, as they jostle to offer the lowest priced goods to consumers in difficult times.

Both Tescos and Sainbury's have now increased the rates of return on their internet savings accounts, offering Britons a real alternative to traditional high street lenders.

Tesco's Internet Saver boasts a rate of three per cent (including a 1.75 bonus for 12 months) on a deposit of just £1. Similarly, Sainsbury's Finance's Internet Saver offers a rate of 2.90 per cent, although the bonus is variable and the deposit is £1,000.

Both sit just below the top internet product on the market, which is Egg's Savings Account, offering a rate of 3.25 per cent.

Supermarkets are also making headway in other sectors of the personal finance world, and are becoming more competitive in the credit cards, loans and life insurance arenas.

"Many consumers are disillusioned with traditional banks and instead are looking for an alternative provider for their finances," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

"The combination of competitive deals and a strong brand that consumers already know and trust is a real winner for the supermarkets."

The full range of financial products offered by the UK's supermarkets can be found on Moneyfacts' comparison tables.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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