A&L Plus Saver - what's the point?

footboy

I've just realised that the savings rate on the Plus Saver is LOWER than than the rate on the Premier Current Account.

At 13 Apr 09:
Plus Saver: 0.10%
Premier Current Account: 0.5% (up to £2500) and 0.10% over £2500

I've already advised my son to keep his money in his Premier 21 Current Account as the savings rate is so much lower.

I thought the point of a savings account was to attract a higher rate hence I've been consciously moving my cash from current into the savings account.

Am I missing something? What's the point of a Plus Saver account except to save A&L money???

Thanks

Kavanne

Soooo pointless. I phoned them to say I would never use and to close it but they said they can't.

Hazzanet

I was looking at this the other day actually. Obviously this is an exclusive account for Premier Current account holders. Whilst the definition of exclusive means that only a certain type of customer will be able to hold the account, I would have expected some benefit for having the account.

Why would I save in this PlusSaver account when their Online Account pays 25 times more interest?

Kavanne

Why would I use either when I can have an ISA elsewhere paying 4.02%!?

Hazzanet

Kavanne wrote: »

Why would I use either when I can have an ISA elsewhere paying 4.02%!?

Indeed!..........

PinkPig

footboy wrote: »

Am I missing something? What's the point of a Plus Saver account except to save A&L money???

Absolutely no "point" at all - but in reality lots of people do have money in accounts paying close to zero interest and banks do well out of it. If you have money in a savings account then you need to compare by interest rate - words like "exclusive" and "our competitive rate of 0.1%" are best ignored.

withnell

Plus Saver used to have good rates - remember most people get a bonus over the quoted rate from the date of account opening - my bonus period kept being extended before I shut the account

footboy

Hazzanet wrote: »

Indeed!..........

Yep, got that covered... and a higher rate savings account... this was just me trying to make the most of day to day monthly cash...... at least I caught it this early.

Surely there must be some complaint procedure? How on earth can your savings rate be lower than your current rate? Obviously it can be but I feel duped.

I was convincing myself that it must be that rate on top of the current rate.

Thanks for confirming that this isn't the case!

PinkPig

footboy wrote: »

Surely there must be some complaint procedure? How on earth can your savings rate be lower than your current rate? Obviously it can be but I feel duped.

You can always write a letter to the bank explaining your upset, but it wouldn't do any good because they haven't done anything wrong. The rate was advertised with the account and they paid exactly what they said they would pay. Banks can pay whatever interest rate that they wish, or none, in the same way as a shop can charge whatever they like for things they buy.

It's not the only "savings" account with a ridiculous interest rate - every bank has a long list of accounts that pay 0.1% or 0.5% or so.

Milarky

It's annoying that they open a linked savings account you don't ask for but I believe you 'apply' for such an account when applying for the current account itself. Don't make the mistake of putting any cash in however as they then won't allow you to draw the balance below £1. I just ignore the PlusSaver by 'removing' it from the accounts displayed. Possibly this was someone's 'bright idea' once - to 'offer' additional accounts simply because their limited computer service 'could' only (i.e. was only programmed to by the post office engineers, who left c.1978) 'link' two A&L current accounts directly so they thought it would be very popular. Of course the way to make it popular is not to pay numpty rates.

Humm.. makes me think of the TV series Dallas

A&L: So bad that it's 'good'

footboy

footboy wrote: »

At 13 Apr 09:
Plus Saver: 0.10%
Premier Current Account: 0.5% (up to £2500) and 0.10% over £2500

I've just checked back and there is a bonus rate of 0.75% (to be paid Oct 09) for accounts opened 1 Jul 08 - 28 Sep 08 so it is still slightly higher than the current at present, making it 0.85%... for me... hmmmm, time to move it back before I obviously pop it into a new ISA.

To be fair when I opened it, the Plus Saver was at 4% + bonus - but I haven't been advised of lowering rates - I had to proactively find out myself.

Of course, I signed Martin's petition a while ago re transparent interest rates on savings accounts - no digging about and good notice too.

Banks you are seriously letting yourselves down!