A&L an Santander ISA rate drop as of 6 April

Dubito_ergo_sum

Until recently both were advertising a guaranteed rate of 3.5% above the BoE, now I've noticed this has dropped to 3.2% as of 6 April. If I were to go into the next A&L or Santander branch tomorrow and open an ISA for 2010/2011, would I still be able to benefit from the 3.5% rate seeing as the drop is effective from 06.04 ?

Lokolo_2

No, because A&L and Santander have stopped taking applications for the 3.5% account, unfortunately its too late. :eek:

ylesia

I have a branch appointment tomorrow morning to open one for the 2010/2011 tax year. When I made the appointment I asked what would happen if the ISA was withdrawn before my appointment and the person said that they would still take the application as I had an appointment.

I'll be interested to see what happens tomorrow, no overly bothered as 3.2% is still better than what I can get elsewhere for instant access.

Essenchill

Please let us know if they say your rate for the 2010/2011 tax year will be 3.5 or 3.2%!

Tony69

Dubito_ergo_sum wrote: »

Until recently both were advertising a guaranteed rate of 3.5% above the BoE, now I've noticed this has dropped to 3.2% as of 6 April. If I were to go into the next A&L or Santander branch tomorrow and open an ISA for 2010/2011, would I still be able to benefit from the 3.5% rate seeing as the drop is effective from 06.04 ?

was it not a guaranteed 3% above BoE?

Ditch_Crawler

The number to call is 0800 0324600 - the recorded message will tell you that the 3.5% will be honoured for existing appointments/applications only. The 3.2% will be available from next Tuesday. The adviser will then confirm that on Tuesday it will be possible to open the 3.2% over the phone (not sure about online).

Ditch

Baggieboy_2

Please excuse my ignorance, but we opened an A&L isa 3 weeks ago (account is now set up), but as we're fully "isa'd up" for 2009/10, we have to wait till Tuesday to actually put any money in it.

I've read that if an account had been activated in 2009/10 (i.e. even a £1 deposited) the 3.5% rate would still apply for 2010/11, but 3.2% will apply for accounts which are 2010/11 money only.

Not too bothered really though - its only £15 maximum difference - but would just be nice to know.

Thanks

Ditch_Crawler

Baggieboy wrote: »

Please excuse my ignorance, but we opened an A&L isa 3 weeks ago (account is now set up), but as we're fully "isa'd up" for 2009/10, we have to wait till Tuesday to actually put any money in it.

I've read that if an account had been activated in 2009/10 (i.e. even a £1 deposited) the 3.5% rate would still apply for 2010/11, but 3.2% will apply for accounts which are 2010/11 money only.

Not too bothered really though - its only £15 maximum difference - but would just be nice to know.

Thanks

I think you did the right thing - if I had realised that it was possible to open an account but pay nothing into it until next week, I would have done the same - as things stand, you have all bets covered - if loads of better deals suddenly appear next week, you can go there, but if not, then you already have a brilliant rate which you can use.

Ditch

Swipe

A couple of weeks ago I opened an A/L 3.5% ISA and put £3600 in it. I am assuming that at the end of next week I can add another £5100 to this account? Is that correct or would I need to open a new ISA account at the lower rate?

Ditch_Crawler

Swipe wrote: »

A couple of weeks ago I opened an A/L 3.5% ISA and put £3600 in it. I am assuming that at the end of next week I can add another £5100 to this account? Is that correct or would I need to open a new ISA account at the lower rate?

You will be able to choose between adding £5100 to the 3.5% tracker account, or if there is a better deal on offer next week, then you could go there instead.

Bear in mind that the 3.5% tracker deal will self-destruct one year after you opened it.

Ditch

Baggieboy_2

Thanks for the feedback Ditch. As you say I've kept our options open, so will see if anything crops up next week (but I won't hold my breath!). And as you say - note in the diary to shift it this time next year!