ABBEY Direct ISA 6%

Frugality_2

Hi there,

I October I opened an ISA with Abbey, transfering from Lloyds because of the attractive 6%. I was told this rate was for 13 months and then it will return to the normal rate, does this mean I'm still getting my 6% now even with the unprecedented int rate cuts?

Thanks

SGE1

If the Abbey ISA was fixed, then yes - you'll earn 6% regardless of rate changes.

Frugality_2

I can't remember - I think it was, it never really said, just "13 months 6%" then resume to normal rate.

SGE1

Are you able to withdraw any money from the ISA? If so, I doubt it's a fixed ISA. If you can't withdraw any money until Nov 2009, then it does indeed look like a fixed ISA.

Baldur

Frugality wrote: »

I can't remember - I think it was, it never really said, just "13 months 6%" then resume to normal rate.

If it was the Abbey Direct ISA (Issue 2), it is not a fixed rate but a 'preferential variable rate' for 13 months - the current rate appears to be 4%, see https://www.abbey.com/csgs/Satellite?c=GSDetalleProducto&cid=1157695656129&idParent=1157695655413&pagename=Abbey%2FGSDetalleProducto%2FGS_DetProducto

Frugality_2

Thanks Baldur.

Thats just awful.

John Major once said short-term fiscal stimuluses (eg dropping int rates rock bottom) is not good for long term survival.

Inflation's gonna be out of control.

Frugality_2

Sorry to dig this up but it doesn't make sense.

I was told I would receive SIX PER CENT for 13 months then it would revert to the standard variable rate, currently 1.90%. If you open the same package with Abbey now you'd only get 2.90% but I opened it prior to the savage rate cuts and was told 6% for 13 months, how can this not be so?

Or is it so???

Cheers

JimLad

ring them and find out. I find abbey very helpful when you call them up

oxenryd

I bet you it's the direct ISA, the variable rate one.

Unfortunately, if you haven't got anything in writing clearly stating 6% fixed for 13 months there's nothing they'll do.

I know it's not really what you want to hear.

huffinpuffin

I think I'm in the same boat, I opened a direct ISA issue 2 with the abbey in October too and just phoned abbey to ask what current interest rate was at it didn't seem to be in any of the stuff the abbey has ever sent through and I was just told 1.65% which is even lower than what is showing on their website. I'm thinking of withdrawing my money and putting it into my new tesco saving instead which is paying 5.10% gross.

cottager

huffinpuffin wrote: »

I'm thinking of withdrawing my money and putting it into my new tesco saving instead which is paying 5.10% gross.

And lose the tax-free interest status?