Bradford & Bingley launch new 6.01% eSavings account

Kazza242

Bradford & Bingley have launched a new online savings account, called eSavings 4, paying 6.01% interest. The account allows savers easy access to their money. The minimum deposit is £1,000.

The 6.01% rate includes a bonus of 0.51% for the first 12 months.

Savers who already have money in an earlier issue of B&B's eSavings account may wish to switch to this one to earn a better rate of interest on their money.

More details on the Bradford & Bingley website, here.

Dagobert

You can apply online and request the move the money in your old eSaver to be moved to the new one, either close the old a/c or keep it open.

eSaver 2 currently attracts 5.8%. eSaver 4 will drop to 5.5% after the 6 months bonus period.

You could keep the old one open with a nominal amount in it in order to keep your options open. Balances under £1000 will only earn a nominal interest.

Nominated accounts will not be transferred to the new account.

Kazza242

Dagobert wrote: »

eSaver 2 currently attracts 5.8%. eSaver 4 will drop to 5.5% after the 6 months bonus period.

The eSavings 4 rate drops to 5.5% after 12 months.

From the Bradford & Bingley website:

Key Features:

• The 6.01% rate includes a bonus of 0.51% for the first 12 months
  
• You can open your account with as little as £1,000...

Dagobert - Thanks for the info on how to switch existing savings to the new account. Savers who already have an earlier issue of B&B's eSavings account should find the information helpful.

TCA

Dagobert wrote: »

You can apply online and request the move the money in your old eSaver to be moved to the new one, either close the old a/c or keep it open.

When logged in I have quick links on my accounts summary page to shortened application forms for the e-bond and fixed rate ISA products but not to the new e-savings(4) account. Can anyone confirm that if I just complete a normal application for e-savings(4) that I will be able to transfer money from my e-savings(3) account?

Or am I missing a short cut while logged in?

TCA

PauliPauli

Did a normal application (not logged on) for esavings 4, it asks you for your savings number if existing savings customer (the one on your DD form) and the next day the esavings 4 account just showed up with zero pounds in it, and did a next day trasnfer from my esavings 2, leaving £10 pounds in their just in case it offered a better rate in 12 months then esavings 4Pauli

PauliPauli

.... PS Choose cheque funding during application when asked how you want to do your initial funding (then ignore)

Geoffo_M

It might be prudent to wait until after the expected BOE rate increase this Thursday. B&B might choose to leave this rate at 6.01% whilst increasing the older e-saver - possible making it higher. Just a thought.

TCA

Thanks Pauli Pauli and Geoffo M.

From what Pauli says you can transfer freely between e-savings accounts, so the money can simply be moved back if rates change adversely. And B&B will probably take 3 to 4 weeks to react to any BOE rise anyway.

Geoffo_M

I'm still with e-saver2. When e-saver3 came out, I asked if I had to upgrade and they said no as the increase was across the board. Now there is the e-saver4 with its 0.51% introductory included in the 6.01%, I wonder if B&B are going to wind down the older accounts by not passing on the 0.25% BOE increase?

TCA

Both esavings (3) and (4) will be increased by 0.25% by the end of the month, according to B&B.

Kazza242

Yes, that's right. B&B's eSavings 4 account rate will increase from 6.01% to 6.26%, w.e.f. 29th July 2007. See here.