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

blueberrypie

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?

A&L's interest-rates page says that the 3.5% is valid for balances up to £5,100, so you wouldn't get 3.5% on the full amoiunt. It says nothing about what rate the extra £3600 would earn, but if it's a lower rate, it will probably be a lot lower, and I would expect that opening a new ISA at 3.2% would be a better option.

It's possible, I suppose, that they'll pay 3.5% on the full amount, so it would be worth asking A&L (and getting the answer in writing if they say yes).

masonic

blueberrypie wrote: »

A&L's interest-rates page says that the 3.5% is valid for balances up to £5,100, so you wouldn't get 3.5% on the full amoiunt. It says nothing about what rate the extra £3600 would earn, but if it's a lower rate, it will probably be a lot lower, and I would expect that opening a new ISA at 3.2% would be a better option.

It's possible, I suppose, that they'll pay 3.5% on the full amount, so it would be worth asking A&L (and getting the answer in writing if they say yes).

The other possibility is that it will be closed to new funds after the 5th April, though that's not something A&L have tended to do.

blueberrypie

masonic wrote: »

The other possibility is that it will be closed to new funds after the 5th April, though that's not something A&L have tended to do.

I'd be surprised if they did, as the website says "pay money into your account WHENEVER you want (subject to ISA limits)" (capitals as written on A&L website), and also because it says "If you intend to fund your ISA for the 2009/2010 tax year your funds must reach the account before 5th April 2010."

I'm sure people on this forum have asked A&L and been told they can add funds after 5th April, and also people who opened the account before the interest rate dropped but for the 10/11 tax year have been told that the 3.5% will apply because of the date of opening (not the date of funding). I know A&L don't always get the answers right(!) but they do seem to have answered this question consistently.

StevieJ

blueberrypie wrote: »

A&L's interest-rates page says that the 3.5% is valid for balances up to £5,100, so you wouldn't get 3.5% on the full amoiunt. .

I am pretty sure that account will pay 3.5% for next years allowance as well.

blueberrypie

StevieJ wrote: »

I am pretty sure that account will pay 3.5% for next years allowance as well.

I'm going by the interest-rates page, which gives a maximum of £5100 for the 3.5% rate. Why do you think it would pay 3.5% on anything over that amount?

masonic

blueberrypie wrote: »

I'm going by the interest-rates page, which gives a maximum of £5100 for the 3.5% rate. Why do you think it would pay 3.5% on anything over that amount?

If there was a different rate for balances over £5100 and A&L did not publish it, then they would be in breach of their T&Cs (and the Banking Code if that still exists).

StevieJ

blueberrypie wrote: »

I'm going by the interest-rates page, which gives a maximum of £5100 for the 3.5% rate. Why do you think it would pay 3.5% on anything over that amount?

The £5100 is just emphasising the maximum ISA level.

ylesia

ylesia wrote: »

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.

Went to my appointment and I could have got the 3.5% if I was paying in a deposit that day.

I tried to "act dumb" and didn't actually mention that I already had a 2009/2010 ISA and was hoping to open at the 3.5% but just not pay in until Tuesday but didn't work. The only way I was getting the higher rate was to subscribe for 2009/2010. Still happy though, I won't be at the full 5100 for a couple of months so I'm only "losing" about £12.

chocolatum

I popped into the local branch to open a 2010/2011 3.5% Isa a couple of weeks ago and left a post dated cheque for the 6th April 2010. I received a letter saying that the account was opened last week with no deposit to take advantage of the 3.5% and that the cheque will be paid into the account this week.

Now I'm wondering if this will be classed as opening an ISA during 2009/2010 since I already have one with another provider....

Stompa

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?

I did the same, I hope I'll be able to add more at 3.5% but I'm not overly optimistic.