Abbey Direct ISA Issue 2 ( 6.25%)

lancs123 wrote: »

I already have a direct ISA with Abbey, opened it at the beginning of Feb. Will this automatically turn into an Issue 2 @6.25% or do I have to transfer to it in branch?

Thanks

If Abbey wanted all its ISA direct savers to benefit from the better rate it would have merely increased its Direct ISA Issue 1 rate.

Direct ISA issue 2 does accept transfers from Issue 1

http://www.abbey.com/csgs/Satellite?c=GSDetalleProducto&cid=1157695655417&idParent=1157695655413&pagename=Abbey%2FGSDetalleProducto%2FGS_DetProducto

Product details are now on abbey webpage.

http://www.abbey.com/csgs/Satellite?c=GSProducto&cid=1157695655413&pagename=Abbey%2FGSProducto%2FGS_InfProducto


Abbeys "fact" Number 1 gives the impression IMO that the 6.25% rate is fixed for the first 13 months. ( because their is no mention of the word "variable", "Fact" Number 2 does mention the word "variable"

The only way someone can "earn 6.25% AER for 13 months from account opening" is if the rate doesnt change for any reason at all

"Facts at a glance

• Earn 6.25% AER tax free for 13 months from account opening
• After 13 months rates revert to upto 5.25% AER variable, depending on account balance "

If the 6.25% rate is fixed for first 13 months then its a better rate than Nationwides 6.15% One Year Fix, ( and IMO will prove a better deal than Barclays new ISA)

Abbey like Nationwide backdates ISA transfer in interest so no interest is lost during the transfer in period.

Moneyfacts were listing Abbeys new ISA Issue as variable rate. nowhere does Abbey mention the word "variable rate for first 13 months"

Moneyfacts arent listing this ISA in the ISA fixed rate best buy tables either.

caliston wrote: »

I was wondering exactly the same! The Ts&Cs are unclear (and aren't viewable in Firefox unless you select 'view all details on a printable page'). I suppose 'variable' could mean that if you hold it for more than 13 months then it becomes a variable rate account. Most other institutions who offer fixed rates convert the fixed rate account into something by another name (often with a lame rate of interest) on maturation.

But the Ts&Cs only single out their Choices ISA (no longer available) for fixed-rate fixed-term treatment, and claim that they can change the rates on their other products at any time. But maybe that's just after the 13 month period?

One thing not stated clearly on their pages is that transfers in and out and withdrawals are permitted without penalty. Partial transfers out are allowed but not partial transfers in.

After 13 Months the account is variable rate up to 5.25% as stated.

Questions that need to be asked.

1. Is it def fixed rate for first 13 Months ?

2. If it is a fixed rate for first 13 Months what happens if ISAS are transferred from different places ( assuming prev years ISAS can be transferred in ) and arrive at different times, ( can they just be added to the existing transferred in ISA funds with 6.25% only applying from date account was actually opened)

3. Can more than one ISA Direct 2 account be opened so that transferred in funds from different sources that arrive at different times go into different accounts with each account receiving 6.25% rate for first 13 months ?

3. Abbey only mention 2007/08, will the account and rate be available for 2008/09 ISA funds (Or will Issue 3 be launched for 2008/09 year), if so and if someone has already transferred ISA funds in do 2008/09 funds go into same Direct ISA Issue 2 account or does a new ISA Direct Issue account get opened ?

4. Re above Is it One account per person, if so can additions via diff transfers in and/or new 2008/09 ISA funds be added?

5. Only 2007/08 year is mentioned can ISA funds from earlier years be transferred in ? ( words "any existing ISAS" is used and word "provider(s)" is used, yet people would only have one provider for "2007/08 year" )

http://www.abbey.com/csgs/Satellite?c=GSDetalleProducto&cid=1157695655417&idParent=1157695655413&pagename=Abbey%2FGSDetalleProducto%2FGS_DetProducto

"Transfer in any existing cash mini ISAs from other providers.
Make the most of your ISA savings by transferring in any cash mini ISAs you have with other providers."

thor wrote: »

What is the current interest rate of the Direct Issueissue 1? I The problem with this is that there is the possibility issue 2 could be pulled.

From memory Issue 1 is between 5.5%-6% roughly

True Issue 2 could be pulled at any time because if its 6.25% Fixed for 13 Months then they should get deluged with transfer in applications as transfer in is nothing to lose, everything to gain.

I plan to ask Abbey the questions Monday on its Freephone no because on Saturday i sent Nationwide application to transfer my Barclays 2007/08 ISA in @6.15% fix for 12 months. :wall: