FAO: Alliance & Leicester 10% ISA Holders

rone

I'm going to check my paper work for this, I'm sure it was until June 2009.

here is a thread from the time http://forums.moneysavingexpert.com/showthread.html?t=796171

[Deleted User]

rone wrote: »

I'm going to check my paper work for this, I'm sure it was until June 2009.

Any luck on finding the paperwork for this?

rone

Yes, I found the paperwork but nowhere does it mention the rate. It just says check the website - but I'm sure there was a flyer with 10% in big letters. But I think my mind is mixing things together.

masonic

Not a broken rate guarantee, I'm afraid, just a time-limited bonus rate added on to an underlying variable rate...

http://www.alliance-leicester.co.uk/redirects/PDFredirector.aspx?url=premisatermsconditions

7. Interest on Your money
7.1 Interest will be paid at the gross rate as per the Regulations.
7.2 Interest is variable and will revert to the underlying, prevalent Direct ISA rate on 1 June 2009.

michaels

I also thought it was 10% till some date in 2009 - anyone found those T&Cs yet?

masonic

michaels wrote: »

I also thought it was 10% till some date in 2009 - anyone found those T&Cs yet?

Yes, I put a link in the post just above yours and even quoted the relevant text.

michaels

Thanks for the T&C

However there is no mention of the 'offer' with respect to the 10% - if it is variable then it would seem they could have immediately cut the rate to any level that they wanted to at any time but I think the offer would have mentioned something about the 10% rate for example rate includes a x% bonus payable until June 2009 or similar?

masonic

michaels wrote: »

Thanks for the T&C

However there is no mention of the 'offer' with respect to the 10% - if it is variable then it would seem they could have immediately cut the rate to any level that they wanted to at any time but I think the offer would have mentioned something about the 10% rate for example rate includes a x% bonus payable until June 2009 or similar?

The 'offer' is smoke and mirrors. The account pays a variable rate of interest which effectively tracks the Direct ISA rate, until 1st June 2009 when the rate reverts to the underlying Direct ISA rate. You could view it as a Direct ISA with a fixed time-limited bonus if you liked, but that's not how it's dealt with in A&L's rate table. The bit in the T&Cs I quoted, which says:-

7.2 Interest is variable and will revert to the underlying, prevalent Direct ISA rate on 1 June 2009.

...combined with the rate information on A&L's website should give you all the information you need.

michaels

So although not officially stated it is equivalent to direct ISA plus 6% until 1 June?

[Deleted User]

But I was very sure the advert for this definitely said something about not dropping the rate below 10% until 1 June 2009. I should have taken a screenshot I guess. Maybe I misread it.