NatWest has issued an update to 1.8 million bank customers who are set to be impacted by its most recent acquisition plans.
Last week, the high street banking giant began to take on new customers, who were originally with Sainsbury's Bank.
Under the transfer, all of Sainsbury’s Bank’s personal loans, credit cards, and savings accounts will now be carried over into NatWest.
According to the bank, the acquisition deal is expected to be completed by the end of the year.
NatWest has issued a major update
PADespite this dramatic change, NatWest has assured Sainsbury's Bank customers that they will see no immediate changes to their account.
As such, all direct debits, standing orders, spending, payments, and transfers to and from savings accounts are to be unchanged.
Furthermore, Sainsbury's Bank customers will still be able to collect Nectar points with their credit card, which can be spent at the supermarket.
On top of this, NatWest will become the ISA manager for all Sainsbury’s Bank ISAs from today (May 1).
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If a customer has ISAs with both Sainsbury’s Bank and NatWest or Ulster Bank, their accounts will remain separate.
This means that savers can continue contributing to each of the bank's ISA products and make use of the £20,000 tax-free allowance.
With this change, NatWest has written to its ISA customers to give them more details about what the ISA transfer will mean for them.
Last year, Sainsbury's confirmed plans to axe its retail banking division to focus on its traditional retail operations.
In June 2024, NatWest announced plans to acquire Sainsbury's Bank in a deal which saw the giant take on £1.4billion of unsecured personal loans, £1.1billion of credit card balances and about £2.6billion of customer deposits.
On its website, NatWest gave a commitment to the thousands of bank customers who are likely to be affected.
LATEST DEVELOPMENTS:
Sainsbury's Bank customers will now receive banking services via NatWest
PexelsThe bank stated: "There will be no immediate change to how customers use and access their account from May 1, 2025, if the proposed transfer is approved.
"However, as their savings account will transfer to NatWest, customers' maximum FSCS protection will be £85,000 per eligible person across all savings and current accounts they have with Sainsbury’s Bank, NatWest and Ulster Bank Northern Ireland from May 1, 2025.
"As a result, customers may need to make changes so their money continues to be protected by the FSCS."
