AA Internet 1 Year Fixed Rate Savings Account

como_setas

Hi all,

im Thinking of transering into the above isa while its still available, but is it safe if things went belly up, its only £1000 but would the AA be classed as a bank?

thanks all

Baldur

The AA account is operated under the Bank of Scotland approval number of the FSA - see this table.

By the way it's not a Cash ISA but a taxable account.

DocProc

After today's £500bn of Government measures to help our UK banking industry, does anyone have any negative comments to do with placing larger amounts in this 1 Year Term Savings Account?

It is easy to say, "Keep it under £50k for FSCS protection purposes" and so I wanted to try to exclude that as a specific comment.

However, since we all have the Icesave disaster fresh in our minds, if you feel quite passionate about the £50k ceiling as being the way to go, then I would definitely be glad to hear what you have to say.

I'm thinking, that surely, after a £500bn support deal, then none of the banks supported should have much trouble during the next 12 month period?

Or is that conclusion ridiculous?

And 6.98% in interest, paid out every month, looks absolutely unbeatable. Particularly after the B of E's 0.5% Interest Rate cut today.

By the way, the contract for a depositor/investor with this scheme is between the Depositor and the Deposit Taker, who is actually in this case, Birmingham Midshires, a subsidiary company of Royal Bank of Scotland. They in turn, are part of the HBOS group and it is they who hold the single FSA Registration that provides the FSCS Savings Guarantee for the whole group.

zzzLazyDaisy

I would not go above £50k in one institution, under any circumstances. Yes the government have bailed out icesave investors, but I wouldn;t like to assume that will always be the case.

I prefer to spread savings around building societies and the co-op. Simply because they don't have shareholders, so there is no chance of share prices dropping and spreading panic.

slopemaster

zzzLazyDaisy wrote: »

...the co-op. ... don't have shareholders, so there is no chance of share prices dropping and spreading panic.

Thats actually where the biggest lump of my money is right now, too...

babs62

Hi I applied to the AA for the new AA internet 1 year fixed rate 7.21% saving account, which they have approxed and would like me to send a cheque for £50,000 in invest.
I think the AA is part of the Bank of Scotland, so due to the position B O S are in at the moment, is it safe to place this amount with them?

Please help - confused.

Thanks