A&L Online saver issue 5

emiai

I have one of these accounts opened on 22 June 09. It was originally a saver 4 but was upgraded to a 5 for me.

I have had £1000 sat in there which netted around £8.50 Gross interest, less £1.70 tax leaving me with £6.80 in October 09.

I was quite happy with this, but I can't find the terms and conditions in regards to withdrawls from the account. This year I have been simply saving £10 a week to pay for Christmas presents. So the account stands roughly at £1106.80 now.

My question is how will the interest on the account be calculated as it is paid annually, (So Octo 2010) and at christmas if I withdraw the £500 ish I have saved all this year, will this affect the interest earned on the main £1000 deposit (Oct 2011)

Many thanks in advance. Emma. x

Baldur

According to this old article, the variable bonus is payable until 02/08/2010 and withdrawals are not subject to penalties or restrictions.

Best to confirm this with A&L themselves.

emiai

Aha thank you very much, it looks like the account will only have 0.5% interest then after that date. (Or possibly just June when the 12 months bonus will run out from when I opened the account)

I guess I have to keep the money in there until the October anyway - when the interest is paid before I concider moving it.

artha

emiai wrote: »

Aha thank you very much, it looks like the account will only have 0.5% interest then after that date. (Or possibly just June when the 12 months bonus will run out from when I opened the account)

I guess I have to keep the money in there until the October anyway - when the interest is paid before I concider moving it.

presumably you could move the bulk of money to another account on the 12 months anniversary leaving £1 to keep the account open until the interest is paid in October and then close?

emiai

Can that be done? Is the interest worked out monthly then for payouts? I only get the interest yearly, so I assumed the lot would have to be in there at the start of October.

OneADay

Interest is worked out per day so in effect it makes little difference when you withdraw the money barring the usual terms and conditions of savings accounts.

PS - if you are really concerned about withdrawals, just have a word with A&L before taking any money out.

emiai

Thanks all for the replies

Newly_retired

Interest is calculated on a daily basis but only paid annually. So if you withdraw some before the anniversary you will still get interest previously earned. Good idea to keep £1 minimum to make sure you get the interest paid.

emeraldbugle

Bumping this up as a reminder to move funds from this account soon. Rate expires 02.08.10.

I've just opened an online saver 7 with £20 cashback.

mars_2

I too have an online issue saver 5 and as rate expires soon I was looking for a new account.

Where did you see the online 7 emaraldbugle and what was the rate?

I have just been throught he accounts and can't find it.

The best I can see there is an eSaver offering 2.5% which includes a 2% bonus for 12 months.

juicyjude

I also have one of these which expires soon but feel so fed up with the Santander group that I will be looking elsewhere where the bonus expires.