Alliance-Leicester ISA

mikephorse

Back in April after reading Martins Tips, I decided to transfer my ISA holding
to Alliance Leicester who were advertising 6.5 %, this was accomplished by around April 18th. I recently noticed it had disappeared from Martin's tips, so
checked with A-L and discovered that my 6.5 % had been dropped to 6%
2 weeks after making the transfer. I call this sharp practice, using a rate to
entice new investors and dropping it so quickly. I bet there is a large section of people out there who are still unaware the rate has changed.

Rob_07

The rate, as with many other ISA's, is clearly advertised as variable this means that the interest rate can and does change. From april onwards the bank of england has reduced the base rate of interest to 5%. So alliance and leicester are well within there right to reduce the interest rate, likewise if the base rate increases so will the rate of interest on your ISA. I am also sure that the highest rate of interest on this ISA was 6.25% not the 6.5% as you are stating. The reduction in interest rates is mirrored across many other market leading providers, for example the Barclays Tax Haven ISA fell from 6.5% to 6.25%, this is to be expected when the interest rate is VARIABLE

mikephorse

I think you are right regarding the 6.5% being 6.25% in April.
but am still a bit sceptical when you say if the bank rate goes up, so will my ISA.
I cannot remember my previous Variable ISA's ever going up from the initial rate.

Rob_07

With my Barclays Tax Beater Cash ISA last year every time the base interest rate increased so did the rate of interest on the ISA at one point the rate was near 7% so this shows that providers do pass on interest rate increases however some will be slower than others!

Oblivion

mikephorse wrote: »

I think you are right regarding the 6.5% being 6.25% in April.
but am still a bit sceptical when you say if the bank rate goes up, so will my ISA.
I cannot remember my previous Variable ISA's ever going up from the initial rate.

Which is why when you shop for an ISA, or indeed any other savings account, don't just look at the headline interest rate and get seduced by that, look for a rate that is backed by a decent guarantee in relation to bank rate. Quite often it is better to settle for an initially lower rate but with a good guarantee behind it.


Dave.

bubblesbonbon

mikephorse wrote: »

Back in April after reading Martins Tips, I decided to transfer my ISA holding
to Alliance Leicester who were advertising 6.5 %, this was accomplished by around April 18th. I recently noticed it had disappeared from Martin's tips, so
checked with A-L and discovered that my 6.5 % had been dropped to 6%
2 weeks after making the transfer. I call this sharp practice, using a rate to
entice new investors and dropping it so quickly. I bet there is a large section of people out there who are still unaware the rate has changed.

If you transferred your ISA before 1st July it should have been a Direct ISA issue 4 which had an interest rate of 6.25% (including a bonus of 1% until 30.9.2009).

The rate quoted on A&L's web site of 6% is for the "new" Direct ISA which supercedes the issue 4 version.
Unfortunately, A&L have not included interest rates for the closed issue accounts on their site but if they have not informed you then the 6.25% rate should still be applicable.

Check your account number and if it begins with 387 then you have issue 4.

YorkshireBoy

bubblesbonbon wrote: »

If you transferred your ISA before 1st July it should have been a Direct ISA issue 4 which had an interest rate of 6.25% (including a bonus of 1% until 30.9.2009).

The Direct ISA 4 rate fell from 6.25% to 6.00% on 2/5/08.

Unfortunately, A&L have not included interest rates for the closed issue accounts...

Yes they have...

http://www.alliance-leicester.co.uk/savings/interest-rates.aspx (in option 2, select 'closed issue accounts')

Check your account number and if it begins with 387 then you have issue 4.

Direct ISA 4 accounts can also begin 388, 389 & 391.

lindos90

Anyone else having transfer delays?

My husband applied to transfer his ISA fron Brittania in May, his ISA account has been set up now for several weeks however money has not been transfered, he has called brittania and they say they have not recieved any request from A&L, calling A&L, they say they are waiting for the Brittania to send the money.....where do I go from here?

Ive heard of a '30 day rule' but dont know at what point that starts, and if it applies to the sending or recieving bank.

YorkshireBoy

lindos90 wrote: »

where do I go from here?

You make a formal complaint to both institutions...

http://forums.moneysavingexpert.com/showpost.html?p=11967169&postcount=2

bubblesbonbon

YorkshireBoy wrote: »

The Direct ISA 4 rate fell from 6.25% to 6.00% on 2/5/08.Yes they have...

http://www.alliance-leicester.co.uk/savings/interest-rates.aspx (in option 2, select 'closed issue accounts')Direct ISA 4 accounts can also begin 388, 389 & 391.

Thanks for the corrections Yorkshire Boy.:o

I swear that I couldn't get the drop down for closed accounts when I tried an hour ago (even sent a feedback comment)

Bit cheesed off that they haven't told me directly about the drop since I don't get the Telegraph or Express as they say here
http://allianceleicester.creativevirtual.com/aandl/bot.htm?uid=825393637933&StartContext=FAQ.Savings&entry=rate%20change&height=660&width=730&Textsize=&Style=

lindos90

YorkshireBoy wrote: »

You make a formal complaint to both institutions...

http://forums.moneysavingexpert.com/showpost.html?p=11967169&postcount=2

Thanks yorkshireboy, you always have the answer!!:beer: