Bradford & Bingley launch esavings account

Commenting on the launch of the Bradford & Bingley esavings account, paying 6.4 per cent AER, Kevin Mountford, head of savings at price comparison website moneysupermarket.com, said: “While this account isn’t a market-leader as such – in that there are better rates available elsewhere on one-year fixed-rate bonds – it does represent a major shift in the way banks and building societies are looking to acquire funds on the back of the current credit crunch.

"B& B is the first major player in the market to offer such a high rate on an easy access savings account to the mass retail market. Coventry Building Society was the first to offer 6.4 per cent, but that was limited to the over 60s.

"I expect to see more deals of this sort launched as providers shy away from raising funds solely on the wholesale market, for fear of falling foul in the way Northern Rock has.”