Alliance and Leicester Direct Current Account

artha · 24 June 2009 at 12:42PM

If I open two accounts, one in my name and one in my wifes name (through our Quidco accounts) can we deposit £2500 in each and transfer £500 between them each month to qualify for the 6% rate?

cash-magnet · 24 June 2009 at 5:37PM

In a word, Yes. You could also just apply for a second account like I did and run both side by side. Both A&L and Abbey allowed me to open their new 6% current accounts (without any overdraft facilities) even though I already have 3 Abbey accounts and 1 A&L account. I now hold:
3 x Abbey account paying 5% on £2500
1 x Abbey account paying 6% on £2500
1 x A&L account paying 6.5% on £2500
1 x A&L account paying 6% on £2500

YorkshireBoy · 24 June 2009 at 7:09PM

artha wrote: »

...can we deposit £2500 in each and transfer £500 between them each month to qualify for the 6% rate?

Possibly, but you're both going to be hit with a £5 underfunding charge each and every month (because transfers from other A&L accounts don't count towards the minimum monthly credit).

http://www.alliance-leicester.co.uk/siteinfo/legal.aspx#12

artha · 24 June 2009 at 9:20PM

YorkshireBoy wrote: »

Possibly, but you're both going to be hit with a £5 underfunding charge each and every month (because transfers from other A&L accounts don't count towards the minimum monthly credit).

http://www.alliance-leicester.co.uk/siteinfo/legal.aspx#12

Does anyone know if this means any A&L account or another A&L account in the same name?

jonnyb · 24 June 2009 at 9:24PM

unless the t&c's have changed, the £500 monthly deposit has to be from an external account.
only transferring from another a&l account might well forfeit the high interest rate, as well as an uderfunding charge.
with faster payments it does not take long to move £500 from a&l to an external account and back again.CAUTION though as I think the a&l limit for faster payments is £250 at the moment.

td_007 · 24 June 2009 at 11:33PM

cash-magnet wrote: »

In a word, Yes. You could also just apply for a second account like I did and run both side by side. Both A&L and Abbey allowed me to open their new 6% current accounts (without any overdraft facilities) even though I already have 3 Abbey accounts and 1 A&L account. I now hold:
3 x Abbey account paying 5% on £2500
1 x Abbey account paying 6% on £2500
1 x A&L account paying 6.5% on £2500
1 x A&L account paying 6% on £2500

How come A&L let you have two accounts? I assume they are Premier direct a/c. I ask because when you begin the application process it clearly calls out under "legal information" that only one premier direct a/c is allowed.

artha · 25 June 2009 at 12:39AM

jonnyb wrote: »

unless the t&c's have changed, the £500 monthly deposit has to be from an external account.
only transferring from another a&l account might well forfeit the high interest rate, as well as an uderfunding charge.
with faster payments it does not take long to move £500 from a&l to an external account and back again.CAUTION though as I think the a&l limit for faster payments is £250 at the moment.

Jonnyb: Thanks for sorting that one out.

I'm in the process of opening Lloyds vantage accounts (myself,wife and daughter) to take advantage of holding 5-7K in each and moving 1k between them each month (Im assuming that internal transfers in Lloyds are OK and are quick) . The A&L accounts were an extension of that idea but in a seperate loop. Looks like I might have to have them all in the same loop with a bit more managing. If A&L do faster payments for £250 I can do it in two bites (same day?)to a Lloyds account but it is the Lloyds to A&L that may prove to be a bottleneck.... unless anyone has positive experience of fast payments Lloyds to A&L?

cash-magnet · 25 June 2009 at 3:07PM

td_007 wrote: »

How come A&L let you have two accounts? I assume they are Premier direct a/c. I ask because when you begin the application process it clearly calls out under "legal information" that only one premier direct a/c is allowed.

Perhaps it does, but they had no hesitation is opening my 2nd account. How risky could it be for them with no credit facilities or overdraft attached for that account? Does it really matter if it is me or someone else opening this account? The account will still hold £2500 in it (a loan to the bank) and they will still be paying 6% on that deposit no matter who it belongs to. I think they are just wanting to get some cash flowing into their bank with these accounts.

td_007 · 25 June 2009 at 5:49PM

cash-magnet wrote: »

Perhaps it does, but they had no hesitation is opening my 2nd account. How risky could it be for them with no credit facilities or overdraft attached for that account? Does it really matter if it is me or someone else opening this account? The account will still hold £2500 in it (a loan to the bank) and they will still be paying 6% on that deposit no matter who it belongs to. I think they are just wanting to get some cash flowing into their bank with these accounts.

I might try my luck then:beer:

YorkshireBoy · 25 June 2009 at 7:29PM

cash-magnet wrote: »

How risky could it be for them...

From a business point of view they're (bound to be?) losing money!

...with no credit facilities or overdraft attached for that account?

If you've taken another cheque book (and guarantee card) there's a 'loose' £3K overdraft facility attached to your account.

td_007 · 25 June 2009 at 8:41PM

YorkshireBoy wrote: »

From a business point of view they're (bound to be?) losing money!

No they are not. They are giving you 6% while using your money in the account to loan it out at much higher rates. The differential is lower than another current a/c paying say 0.1% interest, but still it works out massively in the bank favour.

Alliance and Leicester Direct Current Account

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