A&L 6.3% savings account

Muhren

Hi

Just wanted some views on this account. My regular saver with Lloyds matures at the end of the month and I need somewhere to stick my money until July. I've used up my isa allowance for the year and was thinking of opening this savings account with A&L.

What I wanted to know is do you think I should open this account now (as they are still the market leader) or wait to see what the inevitable rate drop is?

cos69

There is no telling how it will go, but previously they have tended to treat these a bit like a fixed rate account ie they do not change the rate, just close it to new applications and open a new series at a lower rate. Not much to lose by opening it now while you can and closing 1st of the month if they do cut the rate hard.

Newly_retired

They say they have the right to alter the interest rate ( and are likely to) 30 days after change in BoE rate.
BTW you do know not to make withdrawals from this account, except on the first of the month, as there is no interest paid in any month in which you make a withdrawal. If you plan on keeping it till July there is no penalty on withdrawals in July so you should be fine.

Muhren

Yeah was thinking of just going ahead and opening it cos69 nothing to lose really I guess. Although I am thinking of applying for a credit card soon as well, will it effect applying for that?

Newly retired - yeah I know that you can't make withdrawals without losing a months interest. Need to withdraw a fair chunk in July when they have an amnesty so I'm all good on that front.

elektra

don't forget £20 cash if you go via quidco