Alliance and Leicester eSaver - classic bait and switch?

j19

I signed up to eSaver Issue 2 a few months ago - they were offering about 4%. The rate has now dropped to 1%, but they are offering a product called eSaver issue 3, with a rate above 3.5%.

Is this classic bait and switch? Shall I just open another eSaver (Issue 3) account or move on?

YorkshireBoy

JimpsEd wrote: »

I signed up to eSaver Issue 2 a few months ago - they were offering about 4%. The rate has now dropped to 1%

Are you sure?

Rates look much better than that in their closed issue list...

http://www.alliance-leicester.co.uk/savings/interest-rates.aspx

j19

Strange... got this in an e-mail today:

http://host.alliance-leicester.co.uk/savings/int_rates_200812/SA0097%20Flyer%20A4%20P12.pdf

Look at "Online Saver Issue 2"

YorkshireBoy

JimpsEd wrote: »

Look at "Online Saver Issue 2"

In your OP you said you had the "eSaver Issue 2".

Which account do you have?

j19

Whoops I confused "Online Saver" with "eSaver".

SavingSteve

What A&L did was, after the rate cut, instead of reducing the Issue 2 down from 4% they left that at 4% and introduced an Issue 3 at 3.6%

I am guessing they will, come the end of the month, reduce the Issue 2 down by the half point cut, to 3.5%, making it less attractive than the Issue 3.

That is just my prediction though.

elektra

so maybe worth opening issue 3 now so ready to transfer over on 1st of month

Iconic

JimpsEd wrote: »

Strange... got this in an e-mail today:

http://host.alliance-leicester.co.uk/savings/int_rates_200812/SA0097%20Flyer%20A4%20P12.pdf

Look at "Online Saver Issue 2"

I got that email as well. Are they getting responsible at last or is there a sting in the tail?

Will they now let me know when the rates change?

'Updated Terms and Conditions

At Alliance & Leicester we are committed to making our literature simple and straightforward. For that reason we have updated our Savings Terms and Conditions to make them easier to understand. These will come into effect on 6 March 2009.

Savings interest rates

We would also like to make you aware of our savings interest rates. Please click here to see the rates paid on our savings accounts.'

jj4091

I got the e-mail too & I have issue 1 which unless I misunderstand includes a 1% bonus which comes off in April, I was going to move the max allowance into my & my wife's N.S.& I cash isa's & open a new account somewhere else with the balance, but with the reduced interest rates I am now confused as to whether I should do as I planned or move isa's & savings to a different bank or fixed rate bond. Can anyone advise please.

mars_2

A&L are starting to pi$$ me off changing their accounts every few months, every time you settle into a new account and close the old one a new one pops up, but they do seem to have pretty good rates.

I tried to close my Esaver 1 last month by private message and transfer the balance to my current account, they said it was not possible, so I sent another and said ok leave my £1 there and you can do the paperwork to run it because I wont be using it, next day it was closed.

I haven't read the T&C properly yet but I didn't see the option of free withdrawals in July in issue 3?

elektra

mars wrote: »

I haven't read the T&C properly yet but I didn't see the option of free withdrawals in July in issue 3?

They have changed it to February

'Interest earned every month that no withdrawal is made. In a month in which a withdrawal is made, no interest is earned on the account balance (except in February, when withdrawals are allowed without loss of interest). The AER will be lower if you withdraw.'