alliance and leicester premier direct

bilbo_2

alliance and leicester premier direct just joined

is it possible to buy £2000 premium bonds with my overdraft and enjoyed 0% interest for a year ??

will the account let me do this ??

grumbler

You can do whatever you want with your overdraft within the agreed limit. However, remember, that all overdrafts are 'repayable on demand'.

bilbo_2

grumbler wrote:

You can do whatever you want with your overdraft within the agreed limit. However, remember, that all overdrafts are 'repayable on demand'.

what do you mean by repayable on demand

Fat_Boy

To my (limited) knowledge, your overdraft is just an unsecured loan, if the bank decides they want their money back they can 'demand' repayment, therefore 'repayble on demand'. Not sure what sort of timescales they offer for repayment, and don't know how long it would take to get your cash back out of Premium Bonds, byut as they take a month to become active, I would imagine they take a month to give you your cash back as well (if not longer!!).

System

I suppose then it would be possible to use overdraft money to go in the PlusSaver. If they want the money back, its only a matter of transfering it back.

anticlaus105

Judi wrote:

I suppose then it would be possible to use overdraft money to go in the PlusSaver. If they want the money back, its only a matter of transfering it back.

Open an online saver issue 2. Interest rate is currently 5.15% with 0.9% bonus till end Jun 06.

Plusaver is only 4.25% I think.
EDIT: Make that 4.05%. I just checked the site. That's even worse than I thought.

tanith

A quick question, I just opened an A&L online saver issue 2 and some savings elsewhere in a Cash ISA earning 4.55% , I know that once I take money out of the ISA I cannot replace it and I guess would end up paying tax if I transfer the money into the online save ........... so which would be better ? leave in the ISA or transfer to the higher payer and pay the tax?........

Sorry I don't mean to hijack the original post

grumbler

tanith wrote:

A quick question, I just opened an A&L online saver issue 2 and some savings elsewhere in a Cash ISA earning 4.55% , I know that once I take money out of the ISA I cannot replace it and I guess would end up paying tax if I transfer the money into the online save ........... so which would be better ? leave in the ISA or transfer to the higher payer and pay the tax?........

If you are a taxpayer 5.15% gross is 4.635% net after 10% tax and 4.12% net after 20% tax. You can transfer your ISA to Halifax ISA with 5% interest rate.

danield

I have been transferring money using the 0% overdraft to keep my Premier Direct funded with the monthly £500 requirement. Standing orders between my PD account and current account. If that makes sense....

Just thought I'd share.

Daniel D