Branch based savings are back in vogue

Rachel Thrussell, Head of savings at Moneyfacts.co.uk, comments: “As part of the Bradford & Bingley revamp, the What IF? Saver was launched paying a best buy rate compared with other branch-based accounts of 5.50% (min deposit £2K). The rate includes a 0.50% bonus for the first 180 days, and only permits four free withdrawals per year.

“Also this week saw the launch of Stroud & Swindon BS Branch Reserve account, paying 5.00%. This account requires a minimum investment of £3K and allows three free withdrawals per year.

“Perhaps branch based accounts are coming back in vogue, whilst direct channels such as the internet, telephone and post offer the most cost effective way for institutions to administer accounts. However, and importantly from the institutions’ perspective, they don’t offer the same cross-selling opportunities as sitting face to face with a consumer in a branch.

“For savers who, for whatever reason prefer to use a branch, it’s welcome news that they’ve not been forgotten and are being rewarded with better rates.”