ALLIANCE & Leicester Account

GDBD59

"newbie" question.....their Premier Direct Current Account rate of interest changes to 0.1% when the balance reaches £2500.

Am I correct that the 0.1% only applies to the amount above £2.5k?

The minimum amount per month is £500. Can I just put in £2500 when opening it?

ScottyBoy_2

Hi,

You are correct with your statement that the interest is 0.1% for balances over £2,500.

However you must deposit £500 a month minimum in order to avoid a £5 pen fee (I think its £5 for underfunding).

What I would do is max the account at £2,500 as soon as possible so you get the full benefit then each month deposit £500 pounds and then withdraw the £500 you have deposited plus any interest earned that month and put this somewhere it can earn you more money!! Cash ISA, Instant Access Savings etc

But seek further advice before selecting any savings product or making investment choices, but I have been doing this a while with my A&L account and an ISA and its been successful (so far, but the recent cut in rates is beginnning to hurt :mad:).

Hope this Helps

GDBD59

Exactly what I was thinking Scottyboy. Thanks

tashmatthews

Hi

I have an Alliance & Leicester Premier account, over £3k goes in there a month, I leave my money in there to be honest, is it better for me to wait for the interest that coems with the account, then withdraw the money left over and then put it into there instant saver account that I automatically got when opening the account???

Thanks

masonic

tashmatthews wrote: »

Hi

I have an Alliance & Leicester Premier account, over £3k goes in there a month, I leave my money in there to be honest, is it better for me to wait for the interest that coems with the account, then withdraw the money left over and then put it into there instant saver account that I automatically got when opening the account???

Thanks

You should aim to keep no more than £2500 in the account at any time. You can withdraw the excess on the day it is paid into the account.

ScottyBoy_2

Agreed!!

As there are better places to store your money, I mean 0.1% interest is a con. When you compare how much they would charge you if roles were reversed!!!

alexl

hey i just saw on Alliance and Leicester Website that the rates have gone down from 8.5 per cemt to 6.5 per cent. Is this new rate applicable only to new applicants, as I though the previous rate was fixed for one year from the date of opening the account? ta

masonic

alexl wrote: »

hey i just saw on Alliance and Leicester Website that the rates have gone down from 8.5 per cemt to 6.5 per cent. Is this new rate applicable only to new applicants, as I though the previous rate was fixed for one year from the date of opening the account? ta

Your understanding is correct. The rate you get is fixed for a year, so changes in the rate offered to new customers will not affect you.

ScottyBoy_2

But for new customers given todays base rate of 2.0%, a rate of 6.5% before tax is still a good home for your cash, especially if you can max it with £2,500 from the beginning.

chambta

I've arranged to open one via Quidco. Will pay in £2.5k and internet bank in the minimum funding requirement each pay day and then sent it back the next day. In this savings climate for 6.5% on the 2.5k it's probably worth it.

seaweed5254

hi all,

I have been made redundant in oct. 31. I have been using my premiere direct account to where my salar ygoes in. Obviously, i haven't been putting in any money since November. I just receive a letter from A&L that i have to pay £5 if i haven't put in £500 this month. I will be starting on a contract job on Monday and i am hoping to have money coming in already. However, when i finish my contract job, then the money will stop coming in again. I don't want to pay any penalty. I don't need any free european travel insurance as part of their package. Are there any other benefits on why i have to pay in £500/ month ? The interest rate doesn't seem high at all.

Can i just open a new current account which does not charge any penalty ? close my A&L premier direct acct and transfer my redundancy money into this new account ? if yes, which one would you recommend ? i also have the plussavers and Easy isa accounts with them. will these be affected ?