Sainsbury's Bank increases saving opportunities

13 October 2004
Sainsbury's Bank has launched a new service, offering consumers the utmost savings convenience.

SaveBack lets people put money away for the future with the same ease that the more renowned cashback service lets consumers take money out for the present.

The system lets consumers save for their future by simply swiping their debit card while at a supermarket checkout. The service will be rolled out across the country to 452 Sainsbury's stores, the company has said.

The bank points out that they are the first people in the UK to offer such a service, which it claims could see UK residents put an extra £5.94 billion away each year.

This is because it believes the biggest obstacle to saving is convenience and not a paucity of savings products.

Research released by the company claims that there are 12 million people who say they would use such a service, 61 per cent said this was because of its convenience. Half said that as they visit their supermarket regularly they would be more likely to save and 29 per cent said they would save more due to the trust they have for their supermarket.

Tim Pile, Chief Executive, Sainsbury's Bank said: "Our research shows that 3.47 million people in full-time work are not saving any of their monthly income and 4.13 million are saving less than five per cent, around a third less than they should be setting aside.

"We believe the biggest challenge to closing the savings gap now lies in finding ways to make it easier and more convenient for people to save."

Figures released by Sainsbury's Bank show that there are 10.7 million people in full-time work who are only saving around five per cent of their income rather than the recommended fifteen per cent.

Additionally 3.47 million people in full-time work are not saving any of their monthly income and 4.13 million more are saving less than five per cent.
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