New Savings Account - B&B ok?

cwcw

Now that Icesave have gone bust I will need another savings account to start putting money into each month (and all non-ISA Icesave money when I finally get that back too).

I prefer monthly interest and instant access, so the B&B eSavings account at 6.51% looks a good deal to me. I understand that they are now owned by Santander, and all savings up to £50k are fully guaranteed by our own FSCS? However I've also read things about it eventually being merged with Abbey (less favourable rates) and having a limit on market share (interest rate could be reduced to achieve this).

I have an open account with ING Direct with 7p in which currently pays 6.5% including the bonus. The easiest thing would be to start transferring to their since it's already set up but at the same time I'm reluctant due to ING being part of the passport scheme.

What does everyone think?

cwcw

PS. I forgot to add that I had thought of Alliance and Leicester before I read that interest is not paid in any month where withdrawals are made. I can't find the same limitation with B&B.

Lavendyr

Egg has a 6.55% (variable) instant access account now available, but it is annual interest rather than monthly. They are owned by Citigroup. Just another potential to throw into the mix

nzseries1

I have the B&B account, but I've had it a while (before the changeover). There's no penalty for withdrawls. Yes it's possible Santander may lower the interest rates... but who would know if they actually will?

Not sure where you read about a limit on market share - I've never heard of that applying to Santander, only Northern Rock.

cwcw

I've just successfully applied for the B&B eSaver. 6.51% AER with interest paid monthly and instant access, 100% guaranteed by FSCS up to £50k and part of Santander. Too good to miss. :money:

nzseries1

Well done, let's just hope they don't drop the rate any time soon! But, with the Bank of England base rate dropping last week, I'm not getting my hopes up.