New A&L Isa rate - 5.2% variable

Milarky

So are we a 'cross-purposes' here, then? Does 'Issue 1' relate to the now closed ISA rate of 5.15% whereas 'Issue 2' relate to ISAs which could only be opened once these were withdrawn to new customers? 'Issue 2' did not have a bonus originally, but now appears to. Does that mean that customers with existing Issue 2 ISAs get the bonus just by holding the account?

Thanks

JCL

isasmurf wrote:

Catch up Paul - that was dropped months ago.

Glad to hear it - was worried I had missed something in the T&C's.

buses7675

Hi All,

xfg wrote:

Issue 1 is 5.15 with no bonus.
Issue 2 is 5.2 including the bonus.

The man on the phone said that in the long run Issue 1 may be the better deal depending on how the interest varies; so I'm going to have a think and decide what to do.

I already have an Issue 1 Direct ISA with the full 2004/5 and 2005/6 subscriptions in them, any one any idea if it would be possible to open an Issue 2 Direct ISA now, and wait until April and add £3k for the 2006/7 subscription into it, leaving the Issue 1 alone.

Then, once the intoductory period on Issue 2 is over, transfer the money to the Issue 1 in addition to the money already there. The other way around, if the interest rate on Issue 1 dropped lower than the standard for Issue 2 during that time, transfer the other way into Issue 2.

This way it takes the risk out of losing either interest rate, as no one knows for sure in the long term which would be better!

Any thoughts?!

Cheers

Steve

Julia

Just a word of caution to those about to sign up for the A&L latest 5.2% ISA.

I signed up on-line more than a week ago, and I still have not received any of the paperwork, which was due to arrive within 5 days.

I am invited by the automatic email to ring an 0870 number if I have not received the paperwork.

Therefore, I would not recommend this unless you want to spend the extra interest you will earn on telephone calls. Furthermore, the delay in opening the account could erord the increase in interest.

Quietgirl

Hi,

Got my customer ID number yesterday and my pin this morning. I phoned up and apparently there is a bag log because so many people are applying for these accounts.

buses7675

Hi All,

Thinking about it, I'd have thought A&L would probably slowly drop the rate on the Issue 1 throughout the year (but after April to try to get people to keep the 2006/2007 £3k in), and then possibly reduce the Issue 2 as well later on in the year (as its only the bonus that is guaranteed, not the base rate), before launching an Issue 3 version (or by some other name) at the start of next year for the 2007/2008 financial year.

I'm still toying with the idea of leaving my Issue 1 as is and opening an Issue 2 for the 2006/2007 year, and should Issue 1 drop considerably transfer it into Issue 2 later.

Cheers

robert_h_2

interesting thread that has helped me to decide what to do, and that is:
keep my 2005 £3k isa with halifax and continue to enjoy 5.0% during 2006. switching to a&l isn't worth the extra .2%.
plus has reaffirmed my negativity towards a&l - questionable customer service, despite apparently attractive accounts.

frivolous_fay

I'm waiting for the cash from my old ISA to transfer to my new A&L account.

It's a little over £10k so I'm a bit grumpy that they're sitting on it! I know the money has left my old ISA, in fact my old account has been closed completely now.

They tell me to allow 10 days. It's a bit cheeky really imo.

AddieH

My previous bank finally started the transfer on 2 March and closed my old account, the money didn't register on A&L Online banking until sometime between 2 and 6pm this afternoon and is not yet showing as cleared. But the date shown on the transfer is 7 March, presume it will be cleared for tomorrow morning.

Hope helpful.

flossy_splodge

I see to remember last year a similar discussion with regard to the Halifax (now there's a surprise!!) and the feedback from other moneysavers was that the halifax picked up the paying of interest from the date money left the old account even though it took some time for all the paperwork etc to be completed. Any one know if this is also the case with A&L?
Also, wrt the Halifax, it appears they don't bother to tell you about the direct ISA account at 5.0% unless you either know about it already or talk about transferring out. Shoddy practice to say the least. However, if you want to transfer from one to t'other they can do it in Branch for you.!