A&L Online Saver 5.15% Issue 2

ioscorpio

Online Saver Issue 2 - 5.15% p.a. gross (variable) 4.70% AER includes bonus of 0.90% until 30.06.06

Q. As an Online Saver Issue 2 customer, am I eligible for the bonus rate?

A. All Online Saver Issue 2 customers will automatically receive the bonus rate with effect from 14 October 2005. The bonus rate will be paid on accounts until 30 June 2006.

Q. When does the bonus rate start?

A. The bonus rate is effective on all Online Saver Issue 2 balances with effect from 14 October 2005 until 30 June 2006. Interest is calculated as per Online Saver terms & conditions

Online Saver Issue 1 customers are not eligible for the bonus rate but continue to benefit from a great rate. Take a look at your interest rates for further details.

anticlaus105

So I'm still at 4.75% then with issue 1. Can I open this account and still keep my issue 1 for when the bonus period ends?

ioscorpio

I thought of doing the same thing, but it states if you have Issue 1 that you don't get the bonus rate.

Milarky

Have I worked this out wrongly, then?

5.15 [from 14/10/05 to 30/06/05- 260 days] - then 4.25 [from 1/07/06 to 13/10/06 - 105 days]: [5.15% x 260days + 4.25% x 105days]/365days = 4.89% ?

More simply, the underlying rate is 4.25% - the bonus rate is payable for a maximum of 260days @ 0.9%pa - just add 0.9 x [260/365ths] - which is 0.64% - the same answer.

To get 4.7%, you need fewer days: 365 x [0.45/0.90] - which is exactly 6 months! [I am missing something!]. Needless to say, no one will leave anything in there after 30/06/06 for a 0.9% rate drop....

...what's this then?

5.5 Only one Account can be opened in each Issue of the
product per customer. An Account holder cannot hold a sole
Account and a joint Account in the same Issue of the
product at the same time.

http://www.alliance-leicester.co.uk/savings/onlinesaver-tscs.pdf

[Looks like you can hold both issues simultaneously...]

ioscorpio

But if you have the issue 1 account you will NOT be eligible for the 0.9% bonus.

koenig

I want to setup a BACS transfer from my A+L Curent Account to my Online Saver but the Online Saver account number is 11 digits long and you can only use 8 digits when setting up the transfer. Do I use the last 8 digits of the account number?

Thanks

ioscorpio

I take it that you have internet banking set up.
Phone internet cust services 0113 220 1505, I'm sure my Online Saver account was automatically added to the list of accounts when I opened the account, I did not have to physically add it to the list.

MarkyMarkD

Koenig

You don't do transfers using BACS, you do them directly using internet banking. You definitely do NOT want to use the last 8 digits of the Online Saver account number as that's not part of a proper sortcode/account combination.

charlieboycat

iomexico wrote:

I thought of doing the same thing, but it states if you have Issue 1 that you don't get the bonus rate.

I think there's a question of possible different interpretations here. My reading of the A&L FAQs is that:

You can have both an Issue 1 a/c and an Issue 2 a/c The Issue 1 a/c will not get the bonus - but "continues to benefit from a great rate" (ie. it still gets the 4.85% rate). The issue 2 a/c does get the bonus (until June 2006).

In other words it seems to me that the phrase "Issue 1 customers are not eligible for the bonus" actually means "Issue 1 accounts are not eligible for the bonus". It seems to me that this interpretation is supported by the facts that (1) the link to take you to the relevant interest rate doesn't take you to the Issue 2 rate without bonus, but takes you to the Issue 1 closed a/c rate and (2) I can't see anything in the Issue 2 T&C or the Issue 2 rate table notes that precludes the bonus.

A phone call to A&L tomorrow should confirm one way or the other.

anticlaus105

charlieboycat wrote:

A phone call to A&L tomorrow should confirm one way or the other.

Same here. Gonna call them tomorrow to find out. Very handy this if it does include bonus cos I can s0d ICICI off. Wohoo!

ioscorpio

I rec a letter in Sept stating the interest rate on my online saver account had changed to 4.75%
So charlieboycat where did you get 4.85% from???