ISA Interest rate with Alliance & L

ahll

Hi All,
This afternoon I had to ring the Alliance & Leicster so that I could trasfer my Direct ISA from them to the Bradford & Bingley. (as recommended on this site).

The man on the phone asked me why I was changing so I said to get a better rate. He then told me that the A&L rate was 5.2% ! Well this came as news to me but I decided to do the move anyway to the B&B.

When I checked A&L website the rate quoted is 4.5 %.

Can anyone confirm that the A&L rate is in fact 5.2% ?
If it is then Martains article needs updating.

If not are they allowed to tell you porky pies in order for you to keep your business with them ?

Stonk

It's 4.5% for accounts opened now (which would be Direct ISA Issue 2). But your existing account will be different. For example, a Direct ISA Issue 2 opened before 12 April 2006 (if I recall correctly) is eligible for a bonus that makes the rate 5.2%. And then Direct ISA Issue 1 has another set of rates!

Check out the interest rate tables on their site, including the previous rates and closed issues pages. See if you can fathom it out - in some cases it will depend on the first 3 digits of your account number.

Sillychuckie

The guy is clearly telling porkies, or confused.
The only way you would have the 5.2% is if you had an issue 2 ISA opened between a certain date, and if that was the case, you would know about it.
If you have an issue 1 isa, you wouldnt have that high a rate.
You were righ to stick to your guns.

codetown

A&L is confusing with regards to rates. They do not change issues when they apply bonuses, but it is difficult to keep track of them.

With regards to the Direct ISA Issue 2, there are three rates depending on when you openend the account first time. The 5.2% applies if you opened your Direct Isa 2 account from 09/01/06 to 11/04/06.
I assume the guy on the phone could easily check the rate currently applied to your account (you can ask this routinely on the phone to be sure if you get confused).

If you are in the 5.2% band (i.e. with the fixed bonus of 0.70% until end April 2007), then you are probably in the top-interest paying account available today for cash isas

This is anyway the table:

* Direct ISA Issue 2 rates

..........Annual Gross..........Gross AER*
£1+.........4.50%.................4.50%

Rates effective from 12/04/06.
Rates apply to accounts opened after 11/04/06.


* Direct ISA Issue 2 rates (Accounts beginning with 607, 608)

..........Annual Gross........Gross AER*
£1+......... 5.20%†............5.20%†

Rates effective from 09/01/06. Rates apply to accounts opened from 09/01/06 to 11/04/06. †Includes bonus of 0.70% fixed until 30/04/07

* Direct ISA Issue 2 rates (Accounts beginning with 604, 605)

..........Annual Gross..........Gross AER*
£1+.........4.50%.................4.50%

Rates effective from 02/09/05. Rates apply to accounts opened from 11/07/05 to 08/01/06.

ahll

Hi all,
I have looked into it and it seems it is my mistake. As pointed out above I have a Direct ISA Issue 2 so my rate is 5.2%. In my defence I am new to all this ISA stuff so looked on the letter they sent me which didnt say the rate I then looked on their website and thought I was getting 4.5%. So thort it best to move to B&B.

I will now be staying where I am.

Thanks for the qucik replies it helped me sort the situation out quickly

babe_ruth_3

What rate are b&b paying?

Kazza242

babe_ruth wrote:

What rate are b&b paying?

The B&B E-ISA is currently paying 5.00% AER on balances of £1K and up.

http://www.bradford-bingley.co.uk/savingsandinvestments/esavingsISA.asp