A&L 7% Cash ISA

Wish_I_Could_Save_More · 8 February 2007 at 2:14PM

A&L have just launched their 7% Premier ISA on condition that you open a premier current account....

http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-isa&ct=savingshome

Milarky · 8 February 2007 at 2:29PM

Interesting: For new subscription money only - one year 1% above the BOE rate for a year (then 0.25% below) but it is tied to opening a new Premier current account. I assume that this goes along with the withdrawal of the 12% regular saver?

On £3000 (new money) at 7% for the year (if that rate holds) is £210.

2. Account opening
Details relating to Your application, such as Your eligibility to open an Account.
2.1 You may only open an Account at the same time as You apply and are accepted for a Current Account.
2.1.1 You must not currently hold or have held in the last three months preceding Your Current Account application any Alliance & Leicester current account;

So you have to have closed your old A&L current account 3 months before you apply for this deal

missile · 8 February 2007 at 2:33PM

I wonder if these 1 year A-L deals are worth bothering with? When my regular saver matures, I will be closing my accounts.

Cannon_Fodder · 8 February 2007 at 3:23PM

What an annoying bunch of bar stewards A&L have become.

"brand new customers only" - I never connected the Nationwide (?) advert with A&L to start with, but this is getting beyond a joke.

Don't they realise the staff and computer costs in closing loyal customers' accounts are going to cost more than if they tempted us with 5.5% or 5.7% to stay...?

KTF · 8 February 2007 at 3:42PM

You cant transfer into it from the A&L Direct ISA either. I might still open one in April (I closed my A&L Account more than 3 months ago)and transfer over my old TOISA though. Its a good rate.

eve269 · 8 February 2007 at 3:53PM

I opened an A&L premier current account yesterday and took the option to open the premier savings account - max savings £3,000 per annum gross rate £12% 9.6% net - but I did it in joint names with my husband. If I had done it in one name only I could have opened another premier current account today and started the 7% ISA. I rang today to ask about changing it to single name but they said I could only cancel! pfft! I kept imagining the guy from the Nationwide ad on the end of the phone.

I am sure something else will come along ... ya live ya learn.

Milarky · 8 February 2007 at 4:35PM

eve269 wrote:

I opened an A&L premier current account yesterday and took the option to open the premier savings account - max savings £3,000 per annum gross rate £12% 9.6% net - but I did it in joint names with my husband. If I had done it in one name only I could have opened another premier current account today and started the 7% ISA. I rang today to ask about changing it to single name but they said I could only cancel! pfft! I kept imagining the guy from the Nationwide ad on the end of the phone.

I am sure something else will come along ... ya live ya learn.

They are distinct deals of course

£500 per month into the current account each month (to avoid charges)

£250 onward to RS @ 12%pa fixed (9.6% basic net) OR

£3000 in one go onto ISA @7% (variable)

As you can see the RS is better because it is at least 2.6% net above the ISA. The ISA, however can average £3000 for the year whilst the RS averages £1625 [so £1375 will be at the next best no-notice rate, say 5.75% or 4.6% basic net]

ISA: £210 interest

RS/5.75% feeder account £219.25

..so they come out pretty equal.

tom188 · 8 February 2007 at 4:37PM

If you are higher rate then this new deal is better though.

eve269 · 8 February 2007 at 5:07PM

The RS is the better option but I wanted both!

Barclays do a similar package of current account and savings account at 12.5% gross but they stipulate £1000 a month going into the current account by salary or pension mandate. With the A&L account you just transfer funds of £500 in on day 1 then out on day 2 if you wish.

http://www.moneysupermarket.com/savings/SavingsDetails.asp?SavingsID=23600&Amount=200&Results=8&Lender=

masonic · 8 February 2007 at 7:08PM

In the back of my mind, I had a sneaking suspicion this was what they were planning to do. Can't say I'm tempted at all.

humfer · 8 February 2007 at 8:41PM

Does this mean that there's probably not going to be a Direct Issue 3 from A&L then? If so then I may as well start looking elsewhere to move my cash in the ISA as I already have a premier account....

....And you know what I actually used to feel a touch guilty for purely opening a current account and putting the minimum in each month just so I could get the 10% regular saver. But all this new accounts only has changed that and they deserve to get used...

A&L 7% Cash ISA

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