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New Direct ISA with A&L

hansi
Posts: 3,001 Forumite


A&L are paying 5.40% on £1+ with online transactions and instant access. You can transfer funds in and the only catch I can see is that you have to pay £25 to transfer funds out. This could be dodgy if they decide to reduce their rates. Is this a sprat to catch a mackerel? Maybe, but they don't give any guarantees about changing rates.
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Well spotted on the £25 fee. I don't trust companies that do that. I feel they are the ones most likely to do brief headline grabbing offers then drop the rates later. Wheras a company that makes it easy to transfer out is more likely to stay competitive.0
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I am very wary of tie-ins like this. A fixed fee like this is particularly hard on someone with a small amount in the account - as it will be larger compared to the interest earned. If you have £18k (around the max in a mini cash isa since it started) then the years interest would be about £950 and £25 equates to around a 0.15% rate drop. If you have only £500 it would wipe out your gains entirely!
So....maybe this is OK if you transfer in a large balance0 -
The £25 fee is just another example of why A&L should be avoided. Now try and transfer out and see the pain you will have to go through from daft questions such as Why do you want to transfer out, to losing your paperwork and dragging the transfer-out process out over 3 or more months when it should not take more than 2 weeks.
No ............ Avoid A&L ISA accounts !0 -
The £25 fee is just another example of why A&L should be avoided. Now try and transfer out and see the pain you will have to go through from daft questions such as Why do you want to transfer out, to losing your paperwork and dragging the transfer-out process out over 3 or more months when it should not take more than 2 weeks.
No ............ Avoid A&L ISA accounts !
either stuck with a low rate
or
forced to pay £25
i agree with banks loosing paperwork two it seems all too common these days especially when it suits them0 -
hansi wrote:A&L are paying 5.40% on £1+ with online transactions and instant access. You can transfer funds in and the only catch I can see is that you have to pay £25 to transfer funds out.Can I withdraw money from my Direct ISA?
You can withdraw money (see paying in and making withdrawals) at any time and without penalty. Withdrawals are made by transfer to your nominated current account.
However on the first set of T&C's (the post below is about the second set) mention:5.5 If You wish to transfer the funds in Your Account to an ISA at another financial institution, an exit charge, as detailed in Our Tariff for Additional Services, may be payable. This will be withdrawn from the total balance on the Account, unless You have already made payment through an alternative method that We have agreed.Transfer of variable rate/fixed rate ISA to another institution............................................... £25Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Can't be clearer than this!
https://www.alliance-leicester.co.uk
SavingsDirect
This sheet sets out the tariff for additional services. If you would like further information
please contact SavingsDirect on 08703 333 444, calls are charged at national rate.
Textphone 0845 300 0073, textphone calls charged at local rate.
Written details of interest paid ................................................................................. £10 per year
Stopping a cheque (a cheque will not normally be
stopped unless it has been lost or stolen) .......................................................... £15 per cheque
Reference .............................................................................................. £25 per enquiry (inc VAT)
Copy of paid cheque ............................................................................................. £10 per cheque
Detailed calculation of interest ................................................................................ £15 per year
Detailed statement of transactions and interest ..................................................... £15 per year
Request for duplicate Section 352 certificate ................................................. £10 per certificate
Miscellaneous calculation (by negotiation but subject to
a minimum charge, please ask for details) ...................................... minimum £10 per enquiry
CHAPS payments ............................................................................................. £30 per transaction
Transfer of variable rate/fixed rate ISA to another institution............................................... £25
Audit certificate ................................................................................................. £25 per certificate
Charges correct as at 14 January 2005. Charges are subject to variation. Alliance & Leicester plc, SavingsDirect, PO Box 478, Narborough, Leicester LE19 0BR.
SA8409/MT 01/05
Tariff for
Additional Services
SAVINGS0 -
hansi wrote:Can't be clearer than this!
[tariff snipped]Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
To me, it's very clear! They specifically state that if you transfer out, it will cost you £25. It's there in black and white.0
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Further to the above, there is obviosly no charge for paying in or withdrawing. I doubt if they would have any customers if they started that!0
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I think I know where my misunderstanding stems from.
Withdrawing doesn't appear to be the same as thing as transferring out (I assumed until just now that it was.)
Is this right?
If so, is this what they're hoping most other people won't realise?Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0
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