Bradford & Bingley’s new account range

Rachel Thrussell, Head of savings at Moneyfacts.co.uk, comments: “Bradford & Bingley has performed a major revamp of its savings range, withdrawing accounts such as First Choice, Premier Saver, Premier Tracker and Premier Additions and replacing them with new accounts with differing rates and terms.

“While overall the savings range is pretty competitive, the Everyday Saver account, launched to replace First Choice, should have no place in today’s savings market.

“The account is designed for entry level savers, and once a larger balance has been accrued the saver may have the option to upgraded to a ‘better’ paying account. But what a way to entice savings – offering a maximum return of 1.55%, and that’s on a balance of £25K. The account will also pay a 0.50% bonus if no more than three withdrawals are made in a three-month period.

“With accounts such as Sainsbury’s Bank paying a market leading 6% on balances from £1, it seems highly unlikely that many people will opt for this account. It is fair to say that many institutions will have a ‘poorer’ paying account within their range, but why continue to offer such accounts to new customers? It’s certainly not much of an incentive to get people to start saving and won’t help increase the latest ONS figures, that revealed that the UK household savings ratio has slipped to a 50-year low.”