Sainsbury’s Bank ‘don’t ignore’ customer update over key letter as NatWest takeover begins

All customers with Sainsbury’s Bank are being moved over to NatWest

Sainsbury’s Bank customers have been urged to look out for an important letter(Image: Getty)

Sainsbury’s Bank account holders are being urged to check over their finances as the bank begins its merger with NatWest.

From May 1, Sainsbury’s Bank started transferring all its personal loans, credit cards, and savings accounts over to NatWest. The bank’s chiefs are hoping that by the end of 2025, they will have completed the move over to NatWest systems.

NatWest has promised customers they won’t see any immediate changes. In an update from Sainsbury’s, they reassured clients: “Your Sainsbury’s Bank Credit Card remains valid and you can continue to use it instore, in other stores or online.

“As we usually would, we will contact you as and when any changes are made to your product.” Nectar points will carry on as usual and personal loan conditions such as the length of the term, payment dates, and amounts will remain unchanged.

Personal finance expert Aaron Peake, from the free credit scoring service CredAbility, has shared some tips for those affected by the upcoming changes. He said: “The first thing to do is check any recent emails or letters to make sure you’re aware of what’s happening.

“If you’ve got a savings account, personal loan or credit card with Sainsbury’s Bank, look at your interest rate, fees and repayment terms to see if anything is set to change. It’s also worth checking your direct debits or standing orders, just in case account details are updated.”

Mr Peake has urged the public to stay vigilant for any alterations to the Nectar points scheme, remarking: “Loyalty schemes are often one of the first things to change after a buyout. So if you’re collecting points, you might want to make the most of them now or look for an alternative card if rewards disappear.”

Looking more broadly, he said now is a good time for all bank customers to do a “financial health check” on their accounts. He said: “Whether your bank’s being bought out or not, look at what you’re getting in terms of interest on your savings and the cost of borrowing.

“The banking market is more competitive than it looks on the surface and switching can be easier than you think.” Mr Peake thinks that Sainsbury’s Bank’s acquisition by NatWest could signal a “new phase” in the UK banking sector.

He said: “We’ve already seen the high street banking landscape change a lot in the last decade, with supermarket banks stepping back and some of the challenger banks struggling to turn a profit. This deal shows that the big players like NatWest are now looking to grow by snapping up smaller competitors, especially if it helps them get hold of new customer bases or lending books.”

When asked for an update regarding the transition, Sainsbury’s Bank reassured that it will keep its customers informed and confirmed there will be no immediate changes. This banking takeover follows Nationwide’s completion of its purchase of Virgin Money in October 2024, which was a £2.9billion transaction.

Vicky Bullen, CEO at the globally recognised brand and design firm Coley Porter Bell, said bank bosses should be careful about how Sainsbury’s Bank customers move to NatWest. She said: “There will be a need for careful migration so that Sainsbury’s customers understand the changes that are happening.

“It is key that NatWest considers the equity that Sainsbury’s brand has with its customers and considers the banking experience that it has delivered over many years. So if you’re collecting points, you might want to make the most of them now or look for an alternative card if rewards disappear.

“It needs to communicate clearly all along the way, considering the whole customer journey and experience, making sure that the NatWest experience demonstrates a step forward for those customers.”

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