Abbey 7% Fixed Rate Monthly Saver launch 14/07/06

exel1966

As i said in my previous comments :- Yes you can open a regular saver in Branch - Already having an application form will do you no good as the application will be done electronically in branch.

The 8% applies to new and current customers as long as :-

1 . You open an Abbey account and pay £1000 into the account (salary) OR
2 . Apply for an Abbey mortgage OR
3 . Take out an investment product OR
4 . Open another Abbey Savings account with £1000 or more that isnt currently saved with Abbey.

rangers_fc

Ok the 8% rate has now passed me by :mad:
Quick question can I open a 7% monthly saver without holding a 5.5% bond, or a current account with Abbey I now have my required paperwork to send but am unsure if I qualify for the 7% monthly saver without having other abbey products?

Kazza242

rangers_fc wrote:

Ok the 8% rate has now passed me by :mad:
Quick question can I open a 7% monthly saver without holding a 5.5% bond, or a current account with Abbey I now have my required paperwork to send but am unsure if I qualify for the 7% monthly saver without having other abbey products?

The 8% rate is still available, it is the 5.5% 2 year fixed rate bond that has closed. As it happens, at the time, the 5.5% bond was the product most people chose because of it's competitive interest rate.

You would qualify for the 8% rate if you opened another Abbey savings account with £1,000 or more. There are many accounts to choose from which will enable to you to qualify for the higher rate.

The 7% rate is available to all customers. You don't need to open another other account to open this account.

EagerLearner

Hi there,

I have £2400 with a National Counties Toisa which is earning under 5% tax free. As this special Abbey National account is much better at 8%, would I be better off moving the money even though it pays some tax? I understand I'd not be able to touch the Abbey money for a while - is it one or 2 years?

If you agree this is the best method, what name of account do I quote when I go into the branch to make sure they don't fob me off? I also have a credit card with Cahoot which I am hoping will help - can anyone confirm this yet?

lipidicman

EagerLearner wrote:

Hi there,

I have £2400 with a National Counties Toisa which is earning under 5% tax free. As this special Abbey National account is much better at 8%, would I be better off moving the money even though it pays some tax? I understand I'd not be able to touch the Abbey money for a while - is it one or 2 years?

If you agree this is the best method, what name of account do I quote when I go into the branch to make sure they don't fob me off? I also have a credit card with Cahoot which I am hoping will help - can anyone confirm this yet?

I dont know a lot about Toisa's, only normal ISAs. My guess is that you should not move this as you will lose the tax free staus and you can only invest £250 a month so it will take you the best part of a year to move your balance across, just in time for the rate to drop to 4.75% (something like that anyway)

lipidicman

As the 5.5% bond had closed I settled for the 7% account as I didn't feel the £16 difference was worth putting £1k in a lower rate account.

EagerLearner

Thanks Lipidicman - I hadn't considered the £250 per month aspect - it's Monday is the only excuse I can come up with!

lipidicman

The other crucial aspect is losing your tax free wrapper. I would never withdraw from an ISA for short term gain. You lose that tax free status forever

monkeydust_2

have a mortgage with them already - so they only way I can get the 8% is to open up a current acount, do a standing order into the account and then pay of the mortgage with this account.... then dump the remaining (£250) into the savings account at 8% .. !!!! is it worth it I am wondering..

lipidicman

Monkeydust, put it this way:

The average balance is £1625, so 1% is £16.25. This, less tax (£16.25-20% = £13 net) is the extra interest for the 8% account over the 7% account. Is that worth it to you?

I went for the 7% account for simplicity, it is my 5th 7% or above account running right now