Their deposits might be safe, but Bradford and Bingley savings account customers should still make sure they’re getting the best returns on their investment, says money saving expert Martin Lewis.
Now that the Government has nationalised part of the bank and the rest has been sold, customers who have their life's savings in a Bradford and Bingley savings account will be relieved that their deposits are protected, but they should still make sure they're getting the best deal, urges Mr Lewis:
"B&B savers are in a much safer position now than they were at this stage last week. Then there was a risk of drowning; now they’re in a lifeboat. Yet as they’re breathing their sighs of relief, they need to consider the interest rate they’re earning too."
He explains that the credit crunch does not mean bad news for everyone, and that while many are lamenting soaring mortgage rates, there are others who are reaping the rewards of a current war in the savings accounts
arena, which is producing some competitive rates as banks try to draw in deposits and cut back on lending.
"The credit crunch is boom time for savers as banks are desperate to draw money in." he said, "Yet having bought B&B’s savings book, the Abbey may decide it’s an easy source of funding and drop rates like a stone, which, as most accounts are variable rate, it’s allowed to do."
Martin recommends that B&B savers compare savings accounts
every month to make sure the rate they're getting is still competitive. "If your account starts paying less than 6%, ditch and switch it." he said.
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