Bradford and Bingley e.savings account

hansi · 19 June 2005 at 10:34AM

Has anyone opened one of these accounts? If so, how long does it take to transfer money? Hopefully not as long as A&L, and hopefully as quick as ING!

Kazza242 · 19 June 2005 at 8:07PM

hansi wrote:

Has anyone opened one of these accounts? If so, how long does it take to transfer money? Hopefully not as long as A&L, and hopefully as quick as ING!

Hi, I don't have a B&B savings account, but I found this under the FAQ section of the B&B official website. I think it answers your query:

How long will it take for money to reach my account?

Transfers In
When transferring money from your nominated account to your Bradford & Bingley online savings account, please allow up to 4 working days for the money to reach your account. Requests to transfer into your Bradford & Bingley online savings account received before noon on a working day will be processed the same day. Requests received after noon, or on a weekend of English bank holiday, will be processed the next working day.

Once we receive the money, it may take up to an additional 6 days for the money to become available. Until these funds become 'available,' it cannot be withdrawn.

Transfers Out
When transferring money out of your Bradford & Bingley online savings account to your chosen nominated account it will depend on the transfer method.

For withdrawals made by BACS
Please allow 4 working days for the money to reach your account. Requests to transfer money out of your account received before noon on a working day will be processed the same day. Requests received after noon, or on a weekend or English bank holiday, will be processed the next working day.

For withdrawals made by CHAPS
Requests to transfer money out of your account received before noon on a working day will be processed the same day. Requests received after noon, or on a weekend or English bank holiday, will be processed the next working day.

Stonk · 20 June 2005 at 6:21PM

ING, A&L and B&B all take the standard 2 days to perform the transfer after you request it. A&L then leave it 8 more days before making the money available for withdrawal, whereas ING and B&B are quicker at this. However, in all cases, the money *is* earning interest during those extra days. And who cares how long it takes to become available - if you needed it so soon, why did you transfer it there in the first place?!!

Dave_The_Rave_2 · 21 June 2005 at 9:47AM

They are great. I've got this account myself, you simply set up a direct debit, and do the moeny transfers via their website. The money normally transfers to you own account in about two days. Highly recommend, unlike ING, whom I personally found a real pain (as well as mucking around with their rates from time to time).

Concur with other folk on this site, A&L are slow and incompetent. Stick with B&B until something with a better rate comes along.

mark101 · 25 June 2005 at 12:24PM

I'm looking at this product but what does the last line mean? After the 31st Dec the rate drops? Isn't this then an intro offer? Thanks.

Key features of the Bradford & Bingley eSavings account

* Premium interest rate
* Annual or monthly interest options
* Annual interest: 5.25% gross p.a., 4.20% net p.a., 5.25% AER
* Monthly interest: 5.13% gross p.a., 4.10% net p.a., 5.25% AER
* Annual interest rate guaranteed to at least match the Bank Base rate until 31st December 2005

mephisto_2 · 25 June 2005 at 12:38PM

mark101 wrote:

I'm looking at this product but what does the last line mean? After the 31st Dec the rate drops? Isn't this then an intro offer? Thanks.

Key features of the Bradford & Bingley eSavings account

* Premium interest rate
* Annual or monthly interest options
* Annual interest: 5.25% gross p.a., 4.20% net p.a., 5.25% AER
* Monthly interest: 5.13% gross p.a., 4.10% net p.a., 5.25% AER
* Annual interest rate guaranteed to at least match the Bank Base rate until 31st December 2005

No, it means that the rate MAY drop.

Kazza242 · 25 June 2005 at 8:30PM

mark101 wrote:

I'm looking at this product but what does the last line mean? After the 31st Dec the rate drops? Isn't this then an intro offer? Thanks.
* Annual interest rate guaranteed to at least match the Bank Base rate until 31st December 2005

I noticed the B&B rate guarantee expiry date when reviewing this account on another thread. They might drop the rate when the guarantee runs out or they may leave it as it is. I think what happens to the BOE base rate will be highly significant to B&B's interest rate decision after the guarantee is up. In December, if competitive accounts are launched by rival banking institutions, B&B may decide that it isn't in their best interest to reduce their interest rate.

m_thomp · 12 July 2005 at 8:31AM

A savings numpty here, I'm interested in applying for this account having recently applied for the A&L online svaer 2 days before they dropped their interest rates, however I have some concerns.

I have a a large lump sum to transfer immediately. And, being a bit of a novice when it comes to calculating the best interest rates, I'm a bit confused as to which style of interest payment to go for.

Which method, annually or monthly interest payment, would give me the better return given that I will have a lump sum to invest AND the fact that the interest rates 'may' be revised in December?? Any help would be greatly appreciated.

ReportInvestor · 12 July 2005 at 8:40AM

The AER (Annual equivalent rate) of 5.25% is the same for both monthly & annual interest - so neither should give you a better return than the other.

Neither will you benefit more from one type of interest when interest rates are "adjusted" in the future. The new rates will apply from the same day in each type of account..

m_thomp · 12 July 2005 at 8:43AM

Reporter wrote:

The AER (Annual equivalent rate) of 5.25% is the same for both monthly & annual interest - so neither should give you a better return than the other.

Neither will you benefit more from one type of interest when interest rates are "adjusted" in the future since the annual rate is variable and not fixed.

Thanks Reporter, I will push ahead with my application now.

MJSW · 12 July 2005 at 7:03PM

ReportInvestor wrote:

The AER (Annual equivalent rate) of 5.25% is the same for both monthly & annual interest - so neither should give you a better return than the other.

Neither will you benefit more from one type of interest when interest rates are "adjusted" in the future. The new rates will apply from the same day in each type of account..

I disagree on both counts. Although the differences are fairly small, monthly and annual interest will NOT work out the same for most savers.

If you are a taxpayer, annual interest will be marginally better than monthly (The AER calculations assume gross compounding, but you don't actually get gross compounding because tax is deducted earlier if interest is paid monthly).

And if the rate changes, there is also a marginal benefit in having annual interest rather than monthly. Having said that, the differences will be very small and probably only a few pence a year. {eg, deposit £10000 on 1 Jan at 5% AER, and rate changes to 4% AER on 1 July. Annual interest (gross) = 10000x6/12x5% + 10000x6/12x4%=£450.00. Monthly = 10000x1.05^(6/12)x1.04^(6/12)-10000=£449.88, ie 12p lower. The more frequently the rate changes, the bigger this difference will become.}

Whether you generally expect to add to the account or make withdrawals also effects the comparision. Suppose you already have an account which pays annual interest on 31 December, and another which pays interest monthly. Both have an AER of 5%. It is now 1 December, and you receive £10,000. Which account should you pay it into? If you put it in the annual one, you will receive additional interest of £10000x5%x1/12 = £41.67 on 31 December (I'm assuming a month is 1/12 of a year, although it would be done to the nearest day in practice.) If you put it in the monthly one, you would receive only £10000x1.05^(1/12)-£10000=£40.74 on 31 December, nearly a pound lower.

Bradford and Bingley e.savings account

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free