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16 Dec 2019

Go Direct Personal Finance News  2009

Supermarket price war spills into finance

In recent months the contest between the supermarkets has heated up, as they fight it out to offer lower priced goods to help us all through the recession.

Now the battle has moved from the supermarket shelves into the world of finance as both Tescos and Sainsbury’s increase the rates for savers.

Whether its savings, credit cards, loans or life assurance, the supermarkets offer some highly competitive deals.

(See appendix for how supermarket deals compare)

Michelle Slade, spokesperson for Moneyfacts.co.uk, commented:

“Many consumers are disillusioned with traditional banks and instead are looking for an alternative provider for their finances.

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

“Smaller providers are relying more heavily on their savings books to fund their lending activities and in turn are offering the most attractive savings rates.

“By comparison, many high street banks have a number of alternative ways of raising funding and tend to offer less attractive deals.

“Tesco has already announced its intention to open branches and to move into offering mortgages and possibly current accounts. It will be looking to make its mark in these new areas and is likely to enter the market with highly competitive deals.”

Savings (Internet)

 

Provider

Account

Rate

Bonus

Deposit

Top account

Egg

Egg Savings Account

3.25%

Rate includes a 2.00% bonus for 12 months

£1

Supermarket offering

Tesco

Internet Saver

3.00%

Rate includes a 1.75% bonus for 12 months

£1

Supermarket offering

Sainsbury’s Finance

Internet Saver

2.90%

Rate includes a variable bonus (currently 2.39%) for 12 months

£1,000

Source: Moneyfacts.co.uk 25.8.09

Credit Cards (Introductory Purchases)

 

Card

Introductory Deal

APR

Best Deal

Tesco Personal Finance Clubcard MasterCard

0% for 12 months

16.9%

Supermarket offering

John Lewis and Waitrose Partnership MasterCard

0% for 6 months

16.9%

Supermarket offering

Sainsbury’s Finance MasterCard

0% for 3 months

16.9%

Supermarket offering

ASDA MasterCard

0% for 3 months

17.8%

Source: Moneyfacts.co.uk 25.8.09

Credit Cards (Balance Transfers)

 

Card

Balance Transfer Deal

APR

Best Deal

Virgin Money Credit Card MasterCard

0% for 16 months

16.6%

Supermarket offering

Sainsbury’s Finance MasterCard

0% for 10 months

16.9%

Supermarket offering

ASDA MasterCard

0% for 9 months

17.8%

Supermarket offering

Tesco Personal Finance Clubcard MasterCard

0% for 6 months

16.9%

Supermarket offering

John Lewis and Waitrose Partnership MasterCard

0% for 6 months

16.9%

Source: Moneyfacts.co.uk 25.8.09

Personal Loan (£5,000 loan for new customers)

 

Lender

APR

Monthly Repayment

Best Deal

Sainsbury’s Finance

7.9%

£155.40

Supermarket offering

Tesco Personal Finance

8.7%

£157.59

Source: Moneyfacts.co.uk 25.8.09

Life Insurance (Male non smoker 30 next birthday, £100,000 sum assured, 25 year term)

 

Provider

Monthly Payment

Best Deal

Lutine Assurance

£6.13

Supermarket offering

Tesco Personal Finance

£7.19

Supermarket offering

Sainsbury’s Finance

£7.20

Source: Moneyfacts.co.uk 25.8.09

 

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

 

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Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

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