Aa One Year Internet Bond 7.21%

uih039

Dagobert wrote: »

What are the AA's account details for a BACS/CHAPS transfer?

What is your sort code and account number?

If your bank allows you to make an electronic transfer from your bank's Internet account, or arrange a standing order, you may be able to send money to your AA Internet Saver account by using the following details:

Account name The AA
Sort code 20-97-78
Account number 70372609
Reference Your AA Internet Saver account number

Please note that this type of payment will reach your account within four banking days. We will not charge you for using this service.

Please note that if you are not given the opportunity to enter a reference number, you should not use this method to send us money, as it will not be applied to your account.



Extracted from this page:

http://www.theaa.com/savings/faqs_internet.html



Andrew.

CluelessJock

uih039 wrote: »

Just thought I would mention the method I used to open this account.

I sent a cheque for £10 (despite the £500 minimum) with a covering letter stating I was intending to make a large investment (six figures) and was not prepared to send this by cheque. I stated that the £10 cheque was for ID and money laundering purposes and I would then do a CHAPS transfer for the full amount. I said in the letter that if this was not acceptable they should close the account and return the £10 cheque.

All the paperwork appeared as expected and I have now transferred by CHAPS direct from my Cahoot savings account and the full amount (including the £10) is showing in my AA account.

Andrew.

Thanks for this info., is it something you have done before? I tend to chase the better rates and often get caught with funds sitting in my current account for extended periods when the provider only permits one payment.

uih039

CluelessJock wrote: »

Thanks for this info., is it something you have done before? I tend to chase the better rates and often get caught with funds sitting in my current account for extended periods when the provider only permits one payment.

Yes, I have used this process several times. One of the reasons I have stuck with Cahoot is that they are one of the few internet savings accounts which allow direct transfers by CHAPS anywhere; many accounts only allow BACS withdrawls into your linked account. As you have said, this can mean having cash stuck in a current account.

Unsurprisingly, Birmingham Midshires accept payments this way (the AA account is operated by BM). I think I have also in the past made deposits into ING, Egg and Cahoot by CHAPS.

Of course, there's a fee of about £25 each time but that's worth it as I am moving quite large amounts.

Andrew.

Dagobert

I was told that additional payments will only be accepted after the account has been opened with the initial cheque deposit.

Additional deposits can be cheques drawn on different accounts or BACS or CHAPS payments.

I was asked to cheque on Wednesday whether the account has been opened and then make additional transfers. The advisor stated they they would accept a BACS payment initiated on Wednesday arriving on Friday 17th.



uih039, you state that you deposit amounts greater than the FSCS limit of £50K. Do you feel comfortable with exceeding the limit at HBOS? I have to decide this morning whether the top up the AA account at 7.21% or open a 6.8% bond elsewhere.

CluelessJock

uih039 wrote: »

Yes, I have used this process several times. One of the reasons I have stuck with Cahoot is that they are one of the few internet savings accounts which allow direct transfers by CHAPS anywhere; many accounts only allow BACS withdrawls into your linked account. As you have said, this can mean having cash stuck in a current account.

Unsurprisingly, Birmingham Midshires accept payments this way (the AA account is operated by BM). I think I have also in the past made deposits into ING, Egg and Cahoot by CHAPS.

Of course, there's a fee of about £25 each time but that's worth it as I am moving quite large amounts.

Andrew.

Sorry Andrew, I didn't make myself very clear. My questions related to opening a bond with an initial cheque and following that up with an additional payment in to the same account (bacs or chaps), where the conditions state only one payment is permitted. Is that what you did and is this what you do as a matter of course?

Dagobert

CluelessJock wrote: »

My questions related to opening a bond with an initial cheque and following that up with an additional payment in to the same account (bacs or chaps), where the conditions state only one payment is permitted.

I typically open bonds with multiple cheques drawn on different current accounts. (I have several high interest current accounts, which I fund up to the threshold.)

Speculator

For anyone who's still not received thier forms, I've just spoken to the AA call centre and she advised me to send a cheque from my linked account with a signed covering letter confirming you want the account at 7.21%.

She again confimed the closing date for receipt of cheques is the 15th of October. Remember to write your AA account No. on the back of the cheque and also on the covering letter.

info_addict

Just an update. I applied last Wednesday 8th and was told they would accept cheques up to 14 days from this date. On Saturday 12th I received a letter with confirmation of my linked account Direct Debit set up info and account number. But have not received the letter which was supposed to provide further information on the account set up and cheque deposit.

Thought I would just phone and check again, as some people have been saying the cut off is the 15th for cheque receipt. Eventually, they have confirmed to me that the 15th is indeed the cut off date for cheque receipts and I should just post the cheque along with a covering letter stating I have sent it as I haven't received the other letter.

Doesn't seem they Know a buttock from an arm joint!!

uih039

Dagobert wrote: »

I was told that additional payments will only be accepted after the account has been opened with the initial cheque deposit.

Yes, that's exactly what I did. Sent £10 cheque then did CHAPS after the account had been opened.

uih039, you state that you deposit amounts greater than the FSCS limit of £50K. Do you feel comfortable with exceeding the limit at HBOS? I have to decide this morning whether the top up the AA account at 7.21% or open a 6.8% bond elsewhere.

I have no concerns whatsoever exceeding the 50k limit with HBOS. It is inconceivable that the UK government would allow a major bank like HBOS to fail. They would invoke appropriate measures before it reached that stage, which is exactly what they did this morning. I know others will disagree but that's my opinion! I would not place deposits with what I consider to be "smaller" banks. I am well over 50k with HBOS and Santander (Cahoot). I am sleeping very soundly! It is also easier to sleep if I do not look at the current value of my share portfolio! I keep saying it's a long-term investment, but will I live long enough? As the old saying goes, in the long term we're all dead!:eek:

uih039

CluelessJock wrote: »

Sorry Andrew, I didn't make myself very clear. My questions related to opening a bond with an initial cheque and following that up with an additional payment in to the same account (bacs or chaps), where the conditions state only one payment is permitted. Is that what you did and is this what you do as a matter of course?

Yes, that's exactly what I did with AA and previously with another BM fixed rate. The covering letter was clear - if they didn't like it they should return the cheque and close the account.

I don't usually go for fixed rates, but the current environment of reducing base rate has changed my strategy, so I can't really advise on this more generally. I would always contact the provider in advance or just send a letter with my initial deposit as described above. From what I have read on several fixed rate accounts, they seem to allow additional deposits "whilst the account is still open to new deposits" so I suppose you would need to move quite quickly.

I would say that what I do as a matter of course is to not necessarily assume Ts & Cs are set in stone - a persuasive phone call or letter (to second line advisers, not call centre staff) is often effective in many scenarios including financial investments.

Andrew.