3.5 years fixed rate?

miss_keep_counting

I currently have £3700+ in an ISA with Alliance + Leicester, 21k+ in a 3.6% variable rate with them (was 6ish when I originally joined, my interest has now dropped £45ish a month)

I had a look on the MSE savings pages and decided I’d like to have a regular saver so I have a smaller amount building for emergencies which I can access easily, and so removing money will not then affect my larger already built savings interest.

I originally was going to go for Abbeys Monthy Saving account as my wage goes into Abbey but after visiting a branch I’ve decided to do the below:

-Keep £3700+ in A+L ISA.
-Set up Super Fixed Rate Monthly Saver with Abbey – 12 months, £250 a month, 7% gross p.a./AER if no withdrawals, drops 6.43% if one made, make any withdrawals in a calendar month, the Lower Interest Rate of 0.10% gross p.a./AER will apply on the whole of your savings balance for that month only.
-I was told I can then set up linked accounts, I must put the same amount in each, so I’m planning 5k in each but can put 10k only down side is if house prices hit bottom and I want to buy I wont be able to access my money in the 3.5 years… but… it’s a 3.5 year, min return 5.1%, max 35% (but guessing 5) and the other account is 5.5% gross fixed for one year.
-This will leave 11k or 1k which I will then shove into another ISA come April if the smaller, or fill the ISA and then try and find somewhere else sensible to put the rest….

Bit of advise / opinion?

simon_templar_2

If you mean the GGP that is only 5.5 year term, there is no 3.5 year term There is the GCP option 3.5 and 5.5 year term where if the FTSE is higher than when your money goes in you get the higher percentage.

miss_keep_counting

I agree I can't find what I was told about on the Abbey website, the woman I spoke to said it was a short term offer and would 'run out' or end on the 4th Feb and she showed it to me on her screen not the website. Hopefully I'll find out more in my meeting

simon_templar_2

You will, they will have info sheet on the GGP and GCP. There is also the super saver which is a one year bond which has no interest penalty if you close it early.