A&L increase cash ISA interest rates

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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Kazza242Kazza242 Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
The full 0.25% increase will be added to the following Alliance & Leicester cash mini ISAs, effective 2nd September 2006:

- Direct ISA Issue 2 - £1+ (prev. 4.50%) New rate 4.75%**.

- Direct ISA Issue 2 (incl. 0.7% bonus) - £1+ (prev. 5.20%) New rate 5.45%.

The new 5.45% rate has now been confirmed on the A&L website, here.

- Direct ISA (closed) - £1+ (prev.4.75%) New rate 5.00%.

Cash ISA
£21k+ (prev. 4.55%) New rate 4.80%.
£18k+ (prev. 3.95%) New rate 4.20%.
£9k+ (prev. 3.60%) New rate 3.85%.
£1+ (prev. 3.45%) New rate 3.70%.

A&L are also increasing their savings account rates. Please see this thread for the full list of accounts.

[SOURCE: Alliance & Leicester website]

Here is the link to the rate changes documents (Word and PDF format).
Please call me 'Kazza'.
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Replies

  • Mr_MumbleMr_Mumble Forumite
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    No explanation of what the asterisks mean in the press release. Is it the interest rate excluding bonus?
    "The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.
  • Kazza242Kazza242 Forumite
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    Mr_Mumble wrote:
    No explanation of what the asterisks mean in the press release. Is it the interest rate excluding bonus?

    Just had another look on their website. It doesn't specifically say what the asterisks mean anywhere. I would say that, yes, it must mean the interest rate excluding the bonus.
    Please call me 'Kazza'.
  • KTFKTF Forumite
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    What about the people who have Direct ISA Issue 2 with the 0.7% bonus (currently 5.1%)? Will they see it increase to 5.45%?
  • Kazza242Kazza242 Forumite
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    KTF wrote:
    What about the people who have Direct ISA Issue 2 with the 0.7% bonus (currently 5.1%)? Will they see it increase to 5.45%?

    Yes, I believe so. It is the underlying rate that has risen by 0.25% from 4.50% to 4.75%, so those with the Direct ISA issue 2 with 0.7% bonus rate (5.2%), should also benefit from the increase, w.e.f Sep 2, to 5.45%.

    *EDIT: - Direct ISA Issue 2 (incl. 0.7% bonus) - £1+ (prev. 5.20%) New rate 5.45%.

    The new 5.45% rate has now been confirmed on the A&L website, here.
    Please call me 'Kazza'.
  • humferhumfer Forumite
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    Kazza242 wrote:
    Yes, I believe so. It is the underlying rate that has risen by 0.25% from 4.50% to 4.75%, so those with the Direct ISA issue 2 with 0.7% bonus rate (5.2%), should also benefit from the increase, w.e.f Sep 2, to 5.45%.

    5.45% sounds pretty damn good to me...:T :j :T :j :T
  • wearside_2wearside_2 Forumite
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    Sounds good to me and my OH :beer:

    :j :T :j :T :j :T :j :T :j :T :j :T
    To Dare is To Do:beer:
  • djblamiredjblamire Forumite
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    Is this definitely correct then ? 5.45% on the Issue 2 ?? :)

    Thanks
    Daniel
  • Kazza242Kazza242 Forumite
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    djblamire wrote:
    Is this definitely correct then ? 5.45% on the Issue 2 ?? :)

    Thanks
    Daniel

    Yes, I am pretty sure it is correct, as it is the variable (underlying) part of the Direct ISA 2 interest rate that has increased by 0.25% from 4.5% to 4.75%. Therefore, the underlying rate, plus the 0.7% bonus (which does not increase) gives you a rate of 5.45%.:)

    EDIT:
    - Direct ISA Issue 2 (incl. 0.7% bonus) - £1+ (prev. 5.20%) New rate 5.45%.

    The new 5.45% rate has now been confirmed on the A&L website, here.
    Please call me 'Kazza'.
  • jdavtzjdavtz Forumite
    88 Posts
    I phoned A+L 2 days ago and the person I spoke to said that the ISA running at 5.2% will NOT have arate increase. :(
  • lisyloolisyloo Forumite
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    I don't see how anyone can say one way or the other with the missing information.
    It could say something like.

    ** - excluding accounts opened before 12/4/06 that are getting the bonus (starting 608)
This discussion has been closed.
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