What's wrong with the Alliance & Leicester Direct ISA?

mr_fishbulb

I'm thinking of opening an Alliance & Leicester Direct ISA (5.2%) and transfering my £3000 from my Halifax ISA (now gone down to 4.75%).

I know the 5.2% includes a 0.7% bonus, and there is a £25 fee if I want to transfer my money out from there to another ISA next year (with halifax there is no fee). But here's my situation:

I'm saving for a deposit on a house so I will need the money probably in 12-18 months time. I'm going to be withdrawing the full amount so the £25 transfer fee wouldn't apply.

Would the Alliance and Leicester one be best for me?

Cheers

Paul_Herring

The difference between 4.75% and 5.2% on £3000 over a year is £13.50 - does that seem worth it for you? If so, then swap.

mr_fishbulb

Paul_Herring wrote:

The difference between 4.75% and 5.2% on £3000 over a year is £13.50 - does that seem worth it for you? If so, then swap.

I will be putting more money in this year too.

Horasio

I have looked everywhere - where does it say there is a £25 charge for transferring?

I have just opened an A&L isa account

exel1966

There isnt !!!! It was dropped at least a year ago. It's been mentioned here a thousand times before ! Think it needs to become a sticky if not already.

mr_fishbulb

Ah. I read it on here before so must have been reading an old post.

derrick

Paul_Herring wrote:

The difference between 4.75% and 5.2% on £3000 over a year is £13.50 - does that seem worth it for you? If so, then swap.

and the difference between the Halifax FIXED at 5% is only £6 over a year, with the added fact that the if the BoE rate drops, the Halifax won't, whereas the A&L will.

There is also the NS&I ISA that is guaranteeing to be .55% above BoE rate for 2 years, which at the moment is 5.05%

Horasio

I am fairly new to this forum, so still finding out lots of new things:)

mr_fishbulb

derrick wrote:

and the difference between the Halifax FIXED at 5% is only £6 over a year, with the added fact that the if the BoE rate drops, the Halifax won't, whereas the A&L will.

Halifax fixed says:

*Your minimum opening balance of £3,000 can be made up from one or more of the following: current tax year subscription and/or transfers from previous tax years' mini cash ISA subscriptions.
*No additional deposits or part withdrawals are allowed during the chosen term.

Not much use to me as I don't have another £3000 right now.

derrick

mr_fishbulb wrote:

Halifax fixed says:

*Your minimum opening balance of £3,000 can be made up from one or more of the following: current tax year subscription and/or transfers from previous tax years' mini cash ISA subscriptions.
*No additional deposits or part withdrawals are allowed during the chosen term.

Not much use to me as I don't have another £3000 right now.

But you could transfer the £3000 you mentioned in your OP ??

mr_fishbulb

derrick wrote:

But you could transfer the £3000 you mentioned in your OP ??

Yes, but then have no option to save any more tax free this year