Abbey 6% 'savings' account (fixed for 12 months)

SquareHome

Hi there -

Abbey have recently launched a current account that offers a fixed 6% AER on up to £2,500 for 12 months as long as £1000 is paid into the account each month.The £1000 doesn't have to stay in the account - I've set up standing orders so that this amount floats between my accounts each month.

The beauty of this account is that an unlimited no. of accounts can be opened. I currently have 3 and am planning on opening a 4th tomorrow - so I'll be getting a fixed 6%AER on a total of £10,000 for 12 months - not bad, eh? In addition, there's no need to switch your salary to Abbey to get this account either!

Hope this helps someone! Also bear in mind that after tax at 4.8% this account is better than any 1 year ISAs that are available at the moment!

SQ

PS - I'm not allowed to post a link as I'm a new user. Go the the Abbey homepage, select the 'Bank accounts' tab and check out the details for the 'Preferred In-Credit Rate Bank Account'

SquareHome

Remember - there's no need to switch your salary to Abbey to open this account no matter how much the branch staff may try to persuade you otherwise (see below 'Customers who do not switch')!


Customers who switch
Rates for the first 12 months
6% AER (fixed) on balances up to £2,500 and 0.10%AER (variable) on balances over £2,500.

0% EAR overdraft for the first 4 months (depending on your circumstances)

Customers who don't switch
6% AER (fixed) on balances up to £2,500 and 0.10%AER (variable) on balances over £2,500.

td_007

A quick search on this forum would have showed you that this the 6% offer for Abbey has been around for a long time. As as additional info - A&L offer a similar a/c and you need to put in only £500 every month and you do not need to switch.

mary

When I enquired at my local branch if it was possible to open a second account, I was told no. You can have a current account which had been opened with different conditions and strings attached, but not two
of, for instance, the new one which has just been launched.
It might be worth double checking rather than wasting your money for
a year and finding you are not eligible.

Have had many doses of misinformation from Abbey and have just squeezed £50 + £30 out of them for giving me wrong inforation in the last 6 months.

SquareHome

td_007 - the point of my post was to point out that multiple accounts could be opened with the Abbey account. In addition, I also wanted to point out that there's no need to switch accounts to get the interest rate.

The fact that other posts in the 'Savings' forum refer to savings accounts that have a much lower interest rate (especially the 'instant access' accounts at a frankly paltry approx 3.25%) lead me to believe that this Abbey account is not as well known as it should be. I understand that the £1000 month influx may be a barrier to some people - I thought I should promote it anyway!

Mary - I spoke to 2 different Abbey branch staff about the current account on 2 seperate days and they both assured me that more than one account can be opened. Will double check of course but the account details that they have sent to me states 6%

td_007

SquareHome wrote: »

td_007 - the point of my post was to point out that multiple accounts could be opened with the Abbey account. In addition, I also wanted to point out that there's no need to switch accounts to get the interest rate.

There are recent posts here re people opening multiple Abbey exactly for the same reason you mention. I have 3, someone else here says they have 5.

However if your thread provides "new" info to somebody who did not already know about the Abbey and A&L a/cs then fantastic...that is what is forum is all about:beer:

potfish

Says pretty clearly on this page http://www.abbey-products.com/banking/index.html

Limit of one 6% AER (fixed) Preferred In-Credit Rate Account per person.

td_007

potfish wrote: »

Says pretty clearly on this page http://www.abbey-products.com/banking/index.html

So also A&L Premier Direct a/c- but I have two. As long as you do not ask for an overdraft they do not bother

exel1966

I wonder how long everyone has had their 6% current accounts for ?

It is possible to open more than one, agreed, but it will probably soon be noticed and the interest on the extra accounts will stop as it did after 3 months with my OH's accounts. You may be lucky, you may not be !

By opening more than one you are breaking the T&C's leaving ShAbbey the right to change/close these additional accounts. My OH's was changed to a non-interest account.

With Lloyds it was possible to open any number of their interest paying accounts, but that has now been capped at 3.

exel1966

SquareHome wrote: »

I spoke to 2 different Abbey branch staff about the current account on 2 seperate days and they both assured me that more than one account can be opened. Will double check of course but the account details that they have sent to me states 6%

ShAbbey staff are well known for their lack of product knowledge. I would take anything advised from one of their staff with a VERY BIG pinch of salt !

mary

I opened a current account with Abbey back in 2007 by switching.
That account period then came to an end. Then in December 2008 I did another switch from a different bank in order to get the 6%. I have
been in dispute with them until yesterday when finally it was resolved.
I know and could prove that I was not getting 6% on the whole balance, yet it was advertised 6% on the first £2,500. What apparently happened, was Abbey said I was an existing customer and by default their "system" automatically adjusted my account to 6% on the first £1,000 only. Several letters have been exchanged. The first guy gave me £30 compensation because they sent me a letter which was incorrect in May.
Then yesterday the final settlement was for an extra £50.

So be warned about switching to them more than once. Even if the dappy person in the branch doesn't realise it, their system in my case eventually tripped in and gave me the lower rate. So always check what you are actually receiving.

When I opened their latest 6% offering in branch this week, I made sure the
Personal Banking Adviser, wrote on the computer print out that I was receiving 6% fixed for 1 year, got him to sign it, date it and put his job title, and staple to it his business card.