A&L, Barclays savings slated in the Times today

donaldtramp

http://www.timesonline.co.uk/tol/money/consumer_affairs/article5732624.ece

Alliance & Leicester is second worst after Barclays, having punished savers in notice accounts and easy access with an average 3.32 point cut across the board. It now pays an average of just 1.27%.
Michelle Slade, of Moneyfacts, said: “Not only is Alliance & Leicester cutting rates by more than the average, it also offers packaged accounts such as its Save & Protect which offer sky-high rates but lock you into expensive life-cover plans that you might not need. Savers should watch out.”

Good article. I've checked and my saving accounts with A&L are no longer the best.
They have introduced an e-saver "issue 3" which means that my savings and other members of my families savings rates were dropping in old e-saver accounts.
You can check what rate you are getting by using this A&L link. I was a wee bit annoyed that I was losing interest so I have applied for the e-saver 3 account.

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

A wee warning to check the rates you are getting!!!!

neilp

Fair point - it is definitely worth checking, though it is worth noting that the e-saver issue 2 still pays more than the issue 3.

donaldtramp

I've checked and I was being shafted!!

Not now though, issue 3 applied for.

Interesting to note that my ISA money with A&L is in an older ISA account and you can't "transfer money from other A&L ISAs" to their latest and greatest ISA with the highest interest.
What a pain! I take it I can transfer out to another provider then back into A&L?
Suppose that is why the title of the newspaper article is,
Barclays' billions show why we 'hate bankers'.

Yup they are definitely out to make money from us. And most of us have a strong dislike for bankers at the moment!!!!

elektra

donaldtramp wrote: »

I've checked and I was being shafted!!
Not now though, issue 3 applied for.

What account did you have it then ? esaver 1 ?

Be careful of your timing when transferring to Esaver3, if transferring from another esaver don't forget you won't earn any interest for the month if you withdraw so best to withdraw on 1st of month.

sh856531

From the article:-

Research by financial-data firms Moneyfacts and Defaqto reveals that Barclays profits come at the expense of its customers

What a stupid thing to say. Of course the profits came at the expense of customers. Where the "£$^ else are profits going to come from?

Given that Barclays are the only big 5 bank that actually made a profit and didn't resort to tax payer handouts (if my memory serves), perhaps we should be looking at what they are doing and get the other muppets that nearly bankrupted the country to start doing the same thing.

Kinda seems that as well as being damned if you make a loss, these days, you're also damned if you manage to stay on your feet....

S

donaldtramp

What account did you have it then ? esaver 1 ?

Be careful of your timing when transferring to Esaver3, if transferring from another esaver don't forget you won't earn any interest for the month if you withdraw so best to withdraw on 1st of month.

Sorry I am unsure of the account I currently have. Think it is an original e-saver.
I used the interest rate checker (in my first post) I just put in the first 3 digits of my account number and it brings up the details of the interest rates you receive on that account.
I know about the interest rate penalty but I think the penalty free withdrawal period is July for the account that I currently hold. Working it out, I think I'm still better off moving my cash to the new account.

NeilP are you sure the rates are better for esaver2??? The usual routine is to bring out a new account with good headline rates and then drop old accounts. Why wouldn't A&L do this here?

I agree about the profits from banks. I agree companies have to make a profit, it's just I want to limit their profits from me!!!

I've read further into the article and came across this...

Customers in A&L’s Direct Isa have suffered the most — the account has been cut by a hefty 5.1 points since November, from 5.9% to just 0.8%. Savers, who could have as much as £27,000 in the account, stand to lose £1,377 in interest each year.
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A&L lures customers with hefty introductory bonuses which fall away to paltry rates. For example, the bank pays 1.5% on its Easy Isa until February 2010. However, this falls to 1.5% when the term expires.
David Black of Defaqto said: “This is a sneaky trick. Banks don’t have to notify savers when the term is ending and A&L will no doubt profit from savers who fail to pounce when the bonus period ends.”

Off to move my (and my families) ISAs now.
Seeing that A&Ls latest and greatest ISA does not accept money from existing A&L ISAs it would seem they don't want my families cash. Ah well, their choice!!
What a pain!! Suppose you've just got to keep up with the banks tricks.

gozomark

A&L and Barclays are perceived to be two of the safest banks out there right now, hence why they dont need to be competitive on rates - they are selling safety not income

rb10

The best bit is

A&L lures customers with hefty introductory bonuses which fall away to paltry rates. For example, the bank pays 1.5% on its Easy Isa until February 2010. However, this falls to 1.5% when the term expires.

That sure is a hefty introductory bonus ... falling from 1.5% to 1.5%!

donaldtramp

I want income!!! Or to try not to lose money compared to inflation!
There are guarantees in place up to 50K. Over and above that just split your cash.

Obukit

donaldtramp wrote: »

NeilP are you sure the rates are better for esaver2??? The usual routine is to bring out a new account with good headline rates and then drop old accounts. Why wouldn't A&L do this here?

ESaver issue 2 is currently 3.48% AER, 2.72% net. It's surprising, but then I think they were promoted at the same time A&L were really promoting their current accounts, so maybe they think they'll lose current a/c business if they drop the rates?

There are guarantees in place up to 50K. Over and above that just split your cash.

Or get a joint account, it's £50k per person so £100k for a joint account. It's what me and my girlfriend use for the Investec account.

donaldtramp

Was that esaver2 only if you opened a new account with A&L? I've had my A&L account for a few years. Might be the reason I didn't get it.
Never mind. Still better off with this new account.

Thanks for the Investec account mention. Off to look at that now.....