A HUGE update has been issued regarding the progress of the takeover of a leading supermarket bank.
is set to transfer approximately 1.8million Bank customers to its brand after securing approval from the High yesterday.
This means all of Sainsbury's Bank's , , and savings accounts will be transferred to NatWest, with the process beginning on May 1 and scheduled for completion by the end of the year.
and travel services provided by the supermarket bank will remain unchanged, as these aspects of the were not acquired by NatWest.
Sainsbury's first announced its plans to wind down its banking division in January 2024 to focus more closely on its core operations.
NatWest agreed to in June of the same year.
By August 2024, Sainsbury's Bank had in preparation for the takeover.
It then in March 2025.
Although NatWest has received approval to transfer all affected services to its brand, customers will not experience any immediate changes.
What does this mean to me?
The way Sainsbury's Bank customers manage their accounts will remain the same until their services are officially transferred to NatWest's platform.
In the meantime, customers can c.
Additionally, direct debits, standing orders, payment methods, and the process for transferring money to and from savings accounts will remain unchanged until you're told your account is being moved.
You can still collect 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 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 previously sent to customers, Sainsbury's stated that it believes the transfer will better meet customers' financial needs while providing access to a wider range of 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.
NatWest will also become the ISA Manager for all Sainsbury's Bank ISAs from May 1.
Other than the change in ISA Manager, your ISA will continue to function as normal.
If you hold ISAs with both Sainsbury's Bank and NatWest/Ulster Bank Northern , the accounts will remain separate, and you can continue contributing to them within the £20,000 annual ISA allowance.
To preserve the tax-free status of your ISA, the change in ISA Manager will be handled via an HMRC-managed bulk transfer process.
Customers will receive a separate notification regarding this process at least 30 days before the transfer.
Customers who do not wish to transfer their ISA to NatWest can opt out of the bulk transfer.
To do this, they must either close their ISA (losing its tax-free status) or have .
Credit cards
Your 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.
If your card expires, or is lost, stolen or damaged before your account has moved on to NatWest systems, expected towards the end of 2025, you'll be issued a new Sainsbury's Bank branded card, after that a new NatWest branded card will be issued to you.
Loans
If 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 accounts
Once 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 banking
Once 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.
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