Alliance and Leicester Savings Product Changes

MSE_Martin · 14 June 2005 at 7:07PM

From Monday 13 June, Alliance and Leicester have dropped 2 best buy savings products for new customers. See the Instant Access Savings and Mini Cash ISAs articles to find out which products have replaced them for new customers.

Which accounts have been dropped?

The 5.35% paying Online Saver account, and their 5.4% Mini Cash ISA are now unavailable for new customers to sign up to and,in addition, there has been changes made to their rates for existing account holders.

The bad news.

The Online Saver rate drops to 5%, and is guaranteed to pay at least 0.25% above Bank of England base rate (currently 4.75%) until 31 December 2005.

If you’re a real active consumer, and always like to ride the waves of the very top deal, then see Instant Access Savings article for the best account to transfer to. However, this isn’t a massive drop and the account is still up among the best rates on the market for the moment.

The good news

The Direct ISA rate will stay the same (5.4%) and is guaranteed to be at least 0.65% above base rate till December again. This still makes it the better than the best clean paying new customer account currently available, so it’s well worth keeping your stash in there while the rate stays.

Also, A&L have dropped the £25 transfer-out fee which previously existed on this account. This means that you are free to swap your money into any better paying accounts which may come along in the future (see Cash ISAs -Transfer to up the interest).

monki_man · 14 June 2005 at 7:44PM

My bet bet is to put all my stooze pot from A&L to ICICI bank. Anyone know how long ICICI take to sort out a new account and if anyone had any problems with them so far?

Edit, just erad a thread about this bank

oldagetraveller · 15 June 2005 at 10:06AM

monki_man wrote:

Anyone know how long ICICI take to sort out a new account and if anyone had any problems with them so far?

For ever, in my case! Applied over a week ago and other than receiving a tracking number, that's as far as it's progressed. E-mails have been unanswered so it looks like a 'phone call is in order.

purplefirth · 15 June 2005 at 4:29PM

Sorry for being dumb but as an exisisting customer of A&L online saver does that mean that I will no longer get 5.35% or am I safe. I have noticed that you don't seem to earn interest monthly on the online saver, wondering when you do actually see the interest after 12 months I suppose.

jimclark1967 · 15 June 2005 at 5:06PM

purplefirth wrote:

Sorry for being dumb but as an exisisting customer of A&L online saver does that mean that I will no longer get 5.35% or am I safe. I have noticed that you don't seem to earn interest monthly on the online saver, wondering when you do actually see the interest after 12 months I suppose.

All existing customers are now down to 5% I'm afraid. Interest is paid annually on 1st September.

JC

MiserlyMartin · 15 June 2005 at 6:20PM

I thought that rate was too good to last from a bank. It happened with Abbey on their ISA. Banks just can't seem to consistantly pay out top rates. They just seem to do it for a while to attract new customers. We should all hit them where it hurts and move accounts.

djblamire · 15 June 2005 at 6:39PM

MiserlyMartin wrote:

I thought that rate was too good to last from a bank. It happened with Abbey on their ISA. Banks just can't seem to consistantly pay out top rates. They just seem to do it for a while to attract new customers. We should all hit them where it hurts and move accounts.

Abbey's ISA for existing customers is still 5.35% (as far as I know) ?? - which is still good ?

Thanks
Daniel

miller · 15 June 2005 at 6:42PM

MSE_Martin wrote:

The Direct ISA rate will stay the same (5.4%) and is guaranteed to be at least 0.65% above base rate till December again. This still makes it the better than the best clean paying new customer account currently available, so it’s well worth keeping your stash in there while the rate stays.

Also, A&L have dropped the £25 transfer-out fee which previously existed on this account. This means that you are free to swap your money into any better paying accounts which may come along in the future (see Cash ISAs -Transfer to up the interest).

I cannot find details of the 0.65% guarantee or £25 fee-drop from their website?!?

A&L have recently agrravated me over a charges of a few quid for a Travelex transaction on my Current Account. If the £25 fee has definitely gone and is going to stay gone I am going to move my twelve grand elsewhere at the end of the year.

...oh yeah, and if you ring their non-0870 number say you are anywhere other than the UK otherwise they will point-blank refuse to help.

twhitehead · 15 June 2005 at 6:51PM

I opened an A&L current account end April. Still waiting for my £25. After complaining about the lack I have had a letter from them saying I will get it inside 3 weeks (dated 29 May). I thought internet banking was instantaneous (even if they take 3/4 days to move money from one bank to another.
I have the letter, next stop Financial Ombudsman. It must have cost A&L more than £25 in their time to answer my complaints but I am not letting it drop.
:mad:

miller · 15 June 2005 at 6:53PM

Whilst I am on a bit of a rant this made for interesting reading (written in March):
http://money.guardian.co.uk/saving/currentaccounts/story/0,1456,1445763,00.html
An interesting insight into A&L's attitude to existing customers.

Their products are generally good, but you need to be on your toes with this lot. At least MSE's have the savvy to sniff these things out :-).

jimclark1967 · 15 June 2005 at 6:55PM

djblamire wrote:

Abbey's ISA for existing customers is still 5.35% (as far as I know) ?? - which is still good ?

Thanks
Daniel

Yes, Abbey Postal ISA is still 5.35% for existing customers (before end of April) which is indeed still good :beer:

http://www.abbey.com/legacy_products.htm

How long that lasts is another matter... I suspect they won't be suffering from a backlog of applications for the new Postal ISA (Issue 2) at 4.9%

JC

Alliance and Leicester Savings Product Changes

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