A&L eSaver2 - 6.60% AER

YorkshireBoy

A&L will launch 'eSaver Issue 2' tomorrow, 25th September, paying 6.60% AER (6.41% gross p.a. paid monthly).

http://www.alliance-leicester-group.co.uk/upload/pdf/PR2409081.pdf

Stavros_3

There is a penalty clause with this account. If you make a withdrawl in any month other than July then you earn no interest. Think I'll stay with B & B for the sake of not gaining another 0.09%, thanks anyway, it may suit some people

tawse57

I have 10K in the original esaver and for the life of me cannot figure out what would happen if I withdrew my money tomorrow. I assume though that upon closing an account they would have to pay you the interest by law so, I assume, the thing to do is to not make any withdrawals but to ultimately, at some point in the future, withdraw everything by closing the account.

YorkshireBoy

tawse57 wrote: »

I have 10K in the original esaver and for the life of me cannot figure out what would happen if I withdrew my money tomorrow.

You'd lose 25 days interest, which would be around £43 gross (assuming your account pays 6.5% AER).

I assume though that upon closing an account they would have to pay you the interest by law...

Not "by law" so much as "by T&C's".

...so, I assume, the thing to do is to not make any withdrawals but to ultimately, at some point in the future, withdraw everything by closing the account.

If you want to withdraw anything (other than in the month of July) you should withdraw the entire balance (bar £1) on the 1st of the month, and put any surplus funds elsewhere for the rest of that month. You can then deposit these funds back on the 1st of the next month (unless you have a 'clean' 6.50%+ paying account elsewhere that you'd rather use).

Similarly, when you come to close this account you should withdraw all bar £1 on the 1st of the month, and then call and ask to close the account.

tawse57

Thanks YB - great info. Much appreciated.

pressuredrop_2

Ask A&L to transfer cash from Issue 1 to Issue 2 with no loss of interest.

Easy enough.

tawse57

I had a direct saver online account with them and when I opened the esaver I was not allowed to transfer between accounts. I had to transfer money out of A&L and then back.

There were quite a few posts on here at the time on the subject as some people were allowed to do the transfer and others were not. Didn't leave some of us with good feelings about A&L I have to say.

pressuredrop_2

Oh, I see.

Issue 1 interest rate? Hmm, I wonder...