Bradford + Bingley issue 3 rate dropped again

fishingdobbie

Just noticed it is now 4.51% for the Internet Saver (Issue 3)

Baldur

fishingdobbie wrote: »

Just noticed it is now 5.41% for the Internet Saver (Issue 3)

4.51%, according to their website - http://www.bradford-bingley.co.uk/savings/product/index.asp

Internet Saver (Issue 3) - Online - Variable Rate

Balance Previous AER AER† inc. bonus Gross p.a.% Net p.a.% Monthly Gross p.a.% Monthly Net p.a.%
£1+ 6.01 4.51 n/a 4.51 3.61 4.42 3.54

fishingdobbie

Baldur wrote: »

4.51%, according to their website - http://www.bradford-bingley.co.uk/savings/product/index.asp

Internet Saver (Issue 3) - Online - Variable Rate

Thanks Baldur, I typed it the wrong way round, now edited

Stavros_3

Plus no warning they were reducing it, typical of B & B, begging depositors to save with them when the going got tough, now dumping on their loyal customers

bristolleedsfan

Stavros wrote: »

Plus no warning they were reducing it, typical of B & B, begging depositors to save with them when the going got tough, now dumping on their loyal customers

Reduction is merely the last two Base rate reductions passed on in full, 0.50%+1.50% = 2% reduction.

Lets remember that B+B are not the same savings entity that they once were, they are now under the control of Santander, B+B no longer exists in its own right.

[Deleted User]

I wonder if I'll get an email, 1 week too late of course

I'm starting to get bored of chasing a half decent rate. According to http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#instant the next best paying accounts (for less than £1000 and with no penalties for withdrawing) would be :

The AA's Internet Saver gives 6.46% AER...no short term introductory bonuses.

Or

Tesco's Internet Saver pays 6% AER (with effect from 27 Nov 08) if you've more than £1, with a 1.5% bonus for one year.

Or

Natwest e-savings offers 6% AER, including 2.1% bonus for 12 months, when saving more than £1.

Might any or even all of these accounts drop further than 4.51% I wonder... Is it really worth me opening another account then finding out they've dropped their rate too...

What are other B&B savers thoughts on this? Stick with them or jump ship and be prepared to keep jumping?

I guess the only plus side with B&B is:

The annual gross rate is guaranteed to at least match the Bank of England Base Rate until 1st January 2010

- worth staying with for this?

JayTee99_2

Deleted_User wrote: »

worth staying with for this?

Well everyone has to decide for themselves, depending on their own situation,
but these are my thoughts.

For the money i have placed into variable rate accounts, then i'm happy to leave it where it is as long as the FULL interest rate cuts aren't being passed on to savers.
Clearly B&B and Sainsburybank are now doing just that, so it is worth looking for alternatives to them.

Their guarantees, such as
B&B's

The annual gross rate is guaranteed to at least match the Bank of England Base Rate until 1st January 2010

Sainsbury's

Our rate promise
We promise that until December 2010 you'll always earn higher than market average interest on your internet saver account.
Each month we use moneyfacts.co.uk - the leading independent financial comparison site - to compare the interest rates you receive on your internet saver account against the average rates on over 100 equivalent accounts. blah blah blah..

are really pretty worthless imo!
what counts are actions, and quite clearly they are passing on the full rate cuts to savers.

Besides, if people are prepared to move their funds around (and it's never been easier), then that 'customer power' increases pressure on some not to cut too far, maybe keeping rates slightly higher with some than they otherwise would have been

apt

To be fair to Sainsbury's Bank it was also prompt is passing on previous rate rises, however it is not the place to be for good rates at present. I do not have to chase rates because of the Egg 6.3% fixed, but if I had a large amount of variable savings I would open a Halifax Guaranteed Saver Reward asap, probably with the Yorkshire BS internet saver for easy access money. The Tesco Internet Saver looks quite good as far as rates for the bonus period is concerned, but I'm not sure it's worth the hassle of opening.

Mr_K

Its not worth opening any new variable rates accounts at the moment. Some have lowered their rates as as a result of the 1.5% base rate cut, some haven't, but are sure to do so. Plus there's probably another cut in rates soon. I'm going to wait till the new year and see whats around then. B&B's 4.5% might turn out to be a very competitive rate. (However I must admit to taking most of my money out of it and putting in my 6.3% Egg account...)

[Deleted User]

If only I'd have realised how good a deal the egg 6.3% account was... :huh:

miller

As of now 18 Nov, 19.05 the Internet Saver (Issue 3) has disappeared from the interest rates page entirely. Juicy Halifax GSR here we come.