Alliance & Leicester - sneaky rate drop

soulsaver

I was just checking what interest rates I was getting on my variable rate accounts and:
A&L esaver - opened at 6.5% early this year. Has w/d penalty - no interest on total deposit in month you make a withdrawal except in July(for sure) & at the anniversary or end of bonus. I went in eyes wide open - understood the pitfalls, and was happy to deposit on the basis that I'll move my funds in total when they drop the rate. Thing I don't like is you can't tell from their site what interest rate you are getting - you have to phone!
What I didn't realise is that they weren't gonna tell me when they dropped the rate! They've dropped the my rate down to c.4.05 - and their CS people say no we haven't written to you to say so, nor have we emailed you - but you can open issue2 which pays 6.3%... 'Er, if I transfer from my existing account to the new one do I lose my interest for this month...' 'Yup' says she. 'Were you gonna tell me that or just let me lose it?' 'Err...'
Heads up - if you've got this account your rate has been dropped... and by more than you think...

McSaver

they can just lower the rate when they feel like it! the new 6.3 sounds good but i know it wont last but its somewhere to park my money for now!

funkyhitman

soulsaver wrote: »

Thing I don't like is you can't tell from their site what interest rate you are getting - you have to phone!

They show all interest rates for current and previous accounts here http://www.alliance-leicester.co.uk/savings/interest-rates.aspx but looking at all issues of the esaver I see no mention of 4.5%. Can you find your particular esaver using the first 3 digits of your account no. and see what rate it says it should be? I've always gone by the websites rates so if they differ from what a CS agent says then one of them has to be wrong.

Milarky

Obviously with this type of account it would be most helpful if they changed the rate at the same time - the end of the month when you can do a transfer.

The best thing to do is apply on 1st December for a switch and lose no interest that way.

soulsaver

funkyhitman wrote: »

They show all interest rates for current and previous accounts here http://www.alliance-leicester.co.uk/savings/interest-rates.aspx but looking at all issues of the esaver I see no mention of 4.5%. Can you find your particular esaver using the first 3 digits of your account no. and see what rate it says it should be? I've always gone by the websites rates so if they differ from what a CS agent says then one of them has to be wrong.

Well you learn from this site :thumb: - never noticed that before. Right using that facility gives me a different result (5.97) than what she said yesterday - 4.46 (I know I said 4.05 but I did say circa)
Still had no notification of the drop though. Is this a off shore call centre?
I'll check it & be back.

soulsaver

Weelll would you adam & eve it: After another check with A&L CS says I've been given duff info yesterday:mad: - the rate is 5.97. Sounds like she's given me a net rate. I'm committed for time elsewhere at the mo so I'll double check the transfer loss of interest statement later and get a final confirmation of rate. Apologies for any confusion:o
Many thanks for the info on here, I was off looking for an alternative home for that cash & a loss of interest without need:applause:

soulsaver

McSaver wrote: »

they can just lower the rate when they feel like it! the new 6.3 sounds good but i know it wont last but its somewhere to park my money for now!

Exactly my sentiments when I opened the account. And TBF, if they confirm the 5.97 later, it's held up well.

mars_2

As has been explained you can always check the rate online by putting the first 3 numbers of your account in the box and for Esaver its 5.97 AER, 5.81 gross and 4.65 net, eSaver2 is 6.3 AER, 6.13 gross & 4.9 net.

If you want to transfer money into your eSaver2 do it on the 1st day of the month so you dont lose interest.

oldfella

if you call them and ask them nicely they will do it for you - best done on the 1st

soulsaver

oldfella wrote: »

if you call them and ask them nicely they will do it for you - best done on the 1st

She didn't tell me this either....:mad:
Is it too much to expect banks top be open, honest and above board, he asked naievely...

soulsaver

Right then - the coq up appears that the girl inadvertently spilled the beinz... she gave me the rate it was gonna be from December 1st... and they've cut the esaver2 , too. I didn't get on at 6.3 at all then. Best laid plans..
Dec 1st - it's an upgrade to '2'... or if anything better is around close the account.:mad: