Sainsbury's Bank is launching a one-year risk-free savings account at 5.4 per cent guaranteed gross return.
The account is only available until stocks run out and investors can invest £3,000 or more and be paid interest upon maturity in July 2005.
Sainsbury's has devised a first-come first-served booking system to ensure allocation is as fair as possible. Those that miss out will be prioritised for the bank's next fixed rate savings offer.
The account is designed for investors who do not need to access their savings for the one year term but investors with less than £50,000 can withdraw part of their investment early, subject to a five per cent withdrawal fee, as long as their balance does not fall below £3,000.