What's the situation with Alliance and Leicester?

voyagerbear

cannot find any up to date information re above.:rolleyes:

Crabman

Hi voyagerbear - are you referring to the merge/takeover by Santander?

voyagerbear

Well I was told not to save with them and wondered what there situation is now. It would be an e saver instant access account.Thanks for replying;)

dunstonh

Well I was told not to save with them

Why?

and wondered what there situation is now.

No different

Crabman

There's no reason to not save with them as they're covered by the FSCS in the unlikely event they go bankrupt, there's more info in the following article:

http://www.moneysavingexpert.com/savings/safe-savings

Though you mention an instant access account at A&L, how about considering Kaupthing Edge which has no withdrawl penalties or an initial bonus rate (unless you're taking the A&L account for the cashback?). It too is fully covered by the FSCS.

voyagerbear

thanks. Have approx £190k inheritance that would like easy access to. Trying to decide how to spread it. Decided yesterday but woke up today and dithered!
Thought, £33k Kaupthing, £33k Birmingham Midshires and rest in Northern Rock. Bradford and Bingley good rate but warned off them also...............

tradetime

The takeover of A&L by Banco Santander has received shareholder approval, and EU anti-competition approval, there may still be high court approval in this country, am not sure, but I would see that as a formality.
All in all I believe the takeover is due to complete around October 10th.
http://economictimes.indiatimes.com/International_Business/UKs_Alliance__Leicester_OKs_takeover/articleshow/3490772.cms
I have an account with A&L and have no intention of moving it, in fact will be adding to it this week to bring it up to the protected amount.
Banco Santander is a huge bank with sufficient capital reserves to still be looking for acquisitions.
http://www.forbes.com/markets/2008/09/19/santander-bankofireland-takeover-markets-equity-cx_je_0919markets09.html

YorkshireBoy

voyagerbear wrote: »

It would be an e saver instant access account.

Is this the instant access account that penalises* you for, er, instant access?


* No interest is paid in any month (except July) in which you make a withdrawal.

voyagerbear

Yes, I went back to look at it, defeats the object really doesn't it? so I guess I'll stick with my original decision and stop messing aroud.

This is all new to me and I must say have learnt more this last week about all this than I have ever known about savings. Thanks for all the assistance.:beer:

YorkshireBoy

voyagerbear wrote: »

Yes, I went back to look at it, defeats the object really doesn't it?

If you want to spread your money around, and accept that you'll always have to withdraw 'all bar a pound' on the 1st of the month, then the account may be useful as part of a larger portfolio.

However, if you'll need ALL your money at a moments notice then perhaps you should consider other 'clean' or 'cleaner' 6.5% accounts first and save this one to use as a fallback?

tradetime

The Birmingham Mids account seems ok, I have one of those, no probs with it so far, just be aware it is part of the HBOS group, so if you also have money with Halifax it would be counted together towards your £35k, easy access, no pens
From time to time Northern Rock do an "Access Bond" which gives you a fixed rate without sacrificing access, last one was 6% but looks like it must have closed Friday, worth keeping an eye out for.
If you can afford to tie any of your money up for a year you will get 7.2% with ICICI. But if you know you may need access, it would be best avoided.