Alliance & Leicester wrong cash isa rates

michaeldowney

Hi,
I applied for A+L's cash isa in Aprl 08 after seeing that it was offering 3.5% shown on martins site. After many delays I was sent details of a Direct Cash ISA issue 4 and transferred £10280 into it in Sep/Oct 08. When I received my statement for Jan 09 I had made £135.84 which I thought in line with the agreed rate. When I received the statement for Jan 10 it showed that I only received £104.85 (1.006% interest) for last year. I have looked at A+Ls site which does indeed show a rate of only 0.1% after the first year but I still think that I have not got the original rate from Jan 09 until Sep/Oct 09 when my years grace expired. Does anyone remember the rate offered by A+L in Apr/May 08 and can they make sense of my problem.

Regards Michael

Reaper

According to their web site it was a 1% bonus, so if the current interest rate is 0.1% and you earned a fraction over 1% then is about right. I don't see the problem - other than them stitching you up with a high headline rate that spirals into nothing soon afterwards. Something all the banks are guilty of.

Remember it was not a fixed rate account, it was a variable rate + bonus.

From their web site:

Until 31 May 2009 rates included a 1% bonus

Baldur

The A&L Cash ISA rate in April 2008, from memory, was 6.25% AER variable, including a bonus but, again from memory, it subsequently reduced a few times because of the general financial situation & failure of the Icelandic Banks.