Bradford & Bingley interest rate

moneysaver

Hi,
I see that the B&B interest rate is currently 6.51% on the esaving account. My question is does anyone think that this rate is only on a special offer to get people on board? then they will bring the rate down to nearer the Abbey esaver rate. I do not want to go down the route of opening this account then a few months down the road it then plummets down nearer the Abbey rate. I am only asking for opinions & know no one has a crystal ball but perhaps someone in the know might have an idea on this.


Thanks
Moneysaver

Stavros_3

I have mentioned this on an earlier thread of Interest rate cuts. I am with the B & B, its 6.51% e-saver 3 account has been this rate for a few months. I suspect with the half of 1% cut yesterday that its rate will lower as it is a variable rate account

opinions4u

All savings institutions drag you in with a high rate then reduce it over time. Given that 6.51% is higher than LIBOR it is inevitable that it will reduce.

Keep an eye on the rate, keep an eye on the competition, and be prepared to move your money at least once a year to maximise your returns.

This applies to all banks AND building societies.

bristolleedsfan

The demise of the Iceland Banks + merger of some of the other savings providers will result in lower savings rates across the board. It is of no coincedence that its the highest headline savings rates providers who are no longer/ will in the near future no longer be operating in their own right.

B+B rate has no relevance to base rate, it now also has no bearing on B+B funding requirements so may well reduce by more than base rate reductions in the not too distant future.

Mr_K

B&B did have a habit of issuing new versions of their saving account with higher interest rates, hoping those that had an account already wouldn't notice(!) Of course most of us on here did notice and just moved our money to the newer account - this of course will probably all change now. Its still 6.51% at the mo, if it changes (and banks are still desperate for your money so it might not change that much), then just move it, as its instant access. Egg's 6.3 % instant access account , which has its rate fixed for 12 months, might be a better bet.