A&L increase cash ISA interest rates

masonic

Kazza242 wrote:

Just going by past experience. I remember quite a number of posts from MSE's (sometime in 2004/05) who were having problems finding the interest rate of their Online saver account, once their particular issue was closed to new customers.

Strange . Online Saver issue 1 is back up there in the closed issue list now. I don't remember anything about that, but I'd wager A&L will not want their CS centre deluged with calls, all asking the same question!

Kazza242

masonic wrote:

Strange . Online Saver issue 1 is back up there in the closed issue list now. I don't remember anything about that, but I'd wager A&L will not want their CS centre deluged with calls, all asking the same question!

I remember it well, as I had the Online Saver, but had difficulty finding the rate, at the time, myself. Following the e-mail sent by an MSE, they updated their webpage with the new rate following a BOE base rate change. MSE's haven't got long to wait before the new rate for the Direct ISA (amongst other accounts) comes into effect.

It's odd that they didn't, specifically, list the new interest rate information, for the Direct ISA 2 (inc. 0.7% bonus), in their recent interest rate announcement document (see original post for link).

The fact they did that has only added to the confusion.

humfer

Kazza242 wrote:

As I wrote in my earlier posts in this thread: It is the underlying variable rate of the Direct ISA 2 that has had it's rate increased from 4.50% to 4.75%. Therefore, including the 0.7% bonus, the rate should be 5.45%. Put it this way, if there had been a BOE base rate decrease by 0.25 rather than increase, the Direct ISA 2 rate would have been reduced to 4.95%.

Confirmation should hopefully appear on their website the day the rate change takes effect, Saturday 2nd September.

Fingers crossed - 5.2% is still a very good rate, although 5.45% is obviously that bit better:rotfl:

humfer

Oh, another question - why the 2nd? Surely most of these events happen at the start of the month?

Kazza242

humfer wrote:

Oh, another question - why the 2nd? Surely most of these events happen at the start of the month?

I'm afraid you'll have to ask A&L that question. According to the information they've released, their new rates do not come into effect until tomorrow (2nd Sep).

KTF

Showing as 5.45 now:
http://www.alliance-leicester.co.uk/savings/index.asp?page=closed-rates

Kazza242

KTF wrote:

Showing as 5.45 now:
http://www.alliance-leicester.co.uk/savings/index.asp?page=closed-rates

So I was right.:D :j

humfer

KTF wrote:

Showing as 5.45 now:
http://www.alliance-leicester.co.uk/savings/index.asp?page=closed-rates

Thank god for that. Seeing 5.45 in printed letters aint alf cool eh!!!
:beer: :j :T :rotfl: :cool:

Canny_mal

Is it me or have they made a mistake with the new Gross AER rate on their website

Current Rate

Annual Gross Gross AER

5.45% 5.21%

Previous Rate

Annual Gross Gross AER

5.20% 5.20%

Surely 5.21% is not right or am I missing something??

Mr_Mumble

Canny_mal,

The rates A&L give look right to me. The new gross Annual Equivalent Rate takes into account the loss of the 0.7% bonus from April 30th. The account pays 5.45% gross for the next eight months but for the four following months (to come up with the annual calculation) it will be 4.75%. Hence 5.21% over a 12 month term.

The previously stated annual gross and gross AER figures were the same as the bonus lasted for more than 12 months.