A&L increase cash ISA interest rates

masonic

Canny_mal wrote:

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

Presumably they have factored in the effect of the bonus running out next April. The AER has been calculated from September.

Hey, Mr Mumble - Snap!

Mr_Mumble

Of course Mr Mumble takes four times the amount of words to say the same thing

If the gross amount looks odd compared to the AER then it is almost always down to a "bonus".

humfer

When do they pay interest on these ISA's - its on the 1st Jan isn't it? Or maybe a year after your opened the account?

Also do are any of you planning to transfer your ISA to the next Direct issue ISA whenever that comes around to take advantage of the new bonus?

masonic

humfer wrote:

When do they pay interest on these ISA's - its on the 1st Jan isn't it? Or maybe a year after your opened the account?

http://www.alliance-leicester.co.uk/directisauserguide/index.asp?page=page2

humfer wrote:

Also do are any of you planning to transfer your ISA to the next Direct issue ISA whenever that comes around to take advantage of the new bonus?

What next Direct ISA? What bonus?

bud-miser

So, I think we've managed to clearly establish that the actual amount of money dear ol' A&L will actually pay you after holding your capital in their grubby little mitts for 12 months is... unclear.

So what else is new in the wonderful world of finance?

Goodness me, an industry where, perish the thought, it might actually be in the various companies' interests collectively to keep the consumer in a state of befuddlement and unable to compare product against product..?

Why does this somehow not surprise me?

Shall we next have a look at mobile phone contracts, perchance...? ...or train ticketing...?

Wonderful world we live in, folks.

masonic

bud-miser wrote:

Wonderful world we live in, folks.

It is a wonderful world indeed for anyone prepared to keep their eye on the ball. I dread to think of the mediocre rates I would have earned on my cash if it hadn't been for the various loss-leading accounts I have leapfrogged between over the past few years... and on the subject of contract mobiles, who'd have thought you could get a free handset, free talktime and be completely reimbursed for the cost of line rental, just for being disloyal? Long may it continue.
:beer:

humfer

masonic wrote:

http://www.alliance-leicester.co.uk/directisauserguide/index.asp?page=page2


What next Direct ISA? What bonus?

5.45% is on Issue 2 with the 0.70% bonus. I remember when applying for it back in April it allowed existing A&L ISA customers to transfer their ISA balances to it. I may have mistaken....Was therefore thinking that if A&L launch a new ISA product towards the end of the tax year with another bonus would that be worth transferring to. Excuse me if I'm talking complete rubbish here....

MarkyMarkD

humfer wrote:

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

Because A&L's mortgage SVR increased on 2nd September and the two are related. In other words, the interest they earn on variable mortgages and the interest they pay on variable savings accounts both increase at the same time and everything matches nicely!

masonic

humfer wrote:

Was therefore thinking that if A&L launch a new ISA product towards the end of the tax year with another bonus would that be worth transferring to.

If they launch a new ISA product and it has a better rate than the other products around and you are allowed, then maybe. One thing is (almost) for sure, issue 2 will not be worth holding on to once the bonus has run out.

anniecave

masonic wrote:

One thing is (almost) for sure, issue 2 will not be worth holding on to once the bonus has run out.

Of course not, but we will just look for the next best option elsewhere then! 2007 is a while, and it's a good deal while it lasts!