Warning all Bradford and Bingley e saver 6 account holders, e saver 7 introduced

SnowMan

Bradford and Bingley have introduced e saver 7 from today (2/3/09) paying 3% AER (if over 1K balance) and inclusive of a 1.4% 12 month bonus.

E saver 6 is no longer available and the rate has been cut to 2.6% AER (from 3.1% AER) from 1/3/09.

Internet saver 3 is now paying 2.11% AER (was 2.71%).

See http://www.bradfordandbingley.co.uk/savings/product/index.asp for new interest rates (click on accounts no longer available for e saver 6 rate)


It’s time to switch to e saver 7 from e saver 6 (if not moving money elsewhere).

Usual procedure seems to apply for switching directly from e saver 6 to e saver 7. This is as follows:-

Without logging in go to http://www.bradfordandbingley.co.uk/ and click on “apply now”. You fill in your details and tick the box to say you have an existing account and type in 7 digits from your existing account number when prompted. When it asks for nominated account just click on continue rather than entering any details. Within about 24 hours your new e saver 7 should appear when you log in to your existing account. You can then transfer the full balance (including interest) direct from e saver 6 to e saver 7 and your existing nominated account becomes your linked account for e saver 7.

I am waiting for my e saver 7 to appear so can’t be certain of this but will edit this post to confirm the previous paragraph is correct.

Edit: to update the e saver 7 has now appeared on my account screens and I've implemented the transfer to e saver 7; remember to print e saver 6 account summary before doing the transfer and tick close (old) account when doing the transfer to ensure accrued interest is transferred also. The transfer won't show up immediately on the account screens but updates around 5:30pm the following day I believe, but with a transaction date backdated to the day the transfer was made so no days of interest are lost.

Stavros_3

Well done and many thanks. Have now applied and awaiting new log in details, well spotted

mjmal51

Thanks. Isn't this ridiculous that we have to keep changing the account? Doesn't seem long ago that I transferred from saver 3 to saver 6. So much for rewarding loyalty. Anyway have now set wheels in motion.

sloughflint

Welcome back SnowMan and thanks for the info. Will get onto it.

amistupid

Thanks my frosty friend, done and dusted.

elektra

Thanks, presumably the full bonus rate applies when interest is applied at closure.

SnowMan

elektra wrote: »

Thanks, presumably the full bonus rate applies when interest is applied at closure.

Indeed, the bonus accrues on a daily basis (while the balance is above 1k). So if you (say) deposit a lump sum now, and account is closed in 6 months time and the interest rate stays at 3% AER then you will get 1.5% interest (=3% x 6/12) on your lump sum.

Similarly the bonus on the e saver 6 accrues on a daily basis while the balance is over 1k (so there is no penalty for closing the e saver 6 within the first 12 months)

sloughflint

Of course there would be a downside of this swap if annual interest had been chosen on the esaver 6 to ensure interest was paid in the next financial year.

Closing the account now will presumably force an interest payment on the e saver 6 account.:mad:

savetilibleed

SnowMan wrote: »

{snipped}It’s time to switch to e saver 7 from e saver 6 (if not moving money elsewhere).

Usual procedure seems to apply for switching directly from e saver 6 to e saver 7. {snipped}Within about 24 hours your new e saver 7 should appear when you log in to your existing account. You can then transfer the full balance (including interest) direct from e saver 6 to e saver 7 and your existing nominated account becomes your linked account for e saver 7.

{snipped}
remember to print e saver 6 account summary before doing the transfer and tick close (old) account when doing the transfer to ensure accrued interest is transferred also. The transfer won't show up immediately on the account screens but updates around 5:30pm I believe.

Presumably one can do similar updating an Internet Saver 3 to e saver 7, as you describe? I didn't bother opening a "6" as I had better elsewere, but the current 3% is now OK.:rolleyes: Oh I just realised it is for balances of £1000+. Must remember that.

SnowMan

sloughflint wrote: »

Of course there would be a downside of this swap if annual interest had been chosen on the esaver 6 to ensure interest was paid in the next financial year.

Closing the account now will presumably force an interest payment on the e saver 6 account.:mad:

Unfortunately yes. If that is important then would need to leave £1,000 in the e saver 6 (also has minimum 1K balance to get the main interest rate), transfer the balance above 1K to the e saver 7 (choosing the annual option again when opening the e saver 7), and then close the e saver 6 on 6 April.

sloughflint

Please ignore my previous post. I am now assuming that two accounts can be kept open and keep 1k in esaver 6.

( Thanks SM. Was being a bit slow there)