A&L 5.38% Direct Saver

Secret_Wookie

Spotted this one today

A&L direct saver paying 5.38%

minimum balance - 5k
No interest in any month a withdrawl is made.

http://www.alliance-leicester.co.uk/savings/index.asp?page=dsaver&cm_re=al1rfshpprim-_-02-_-htmlprimarydsaverOct06&ct=htmlprimarydsaverOct06

Is this too good to be true?

grade15

sounds great..but i think i have to find £4999.99 under the sofa somewhere!!:dance:

codetown

Well spotted. From the looks of it, they just launched it.

Note that those on the Online Saver Issue 2 (Accounts beginning with 180), should still get a slightly better deal on that account as it offers 5.40% gross p.a. (paid annually and not monthly).

Just a side note: I noticed just now on this page:
http://www.alliance-leicester.co.uk/savings/index.asp?page=closed-rates
that the Gross and AER rate for the Online saver 2 (top one account) are different. We have: Gross 5.40% and AER 5.02%.
I don't understand why this is the case! Being this paid annually, shouldn't the two (gross and AER) be exactly the same (as it is for the older rates as well...)?

nrsql

No interest on the whole balance in any month that a withdrawal is made - so no good unless you only ever withdraw the whole balance and also do that at the begining of a month.

I would wait and see what happens to the boe rate next month and see how account react.

YorkshireBoy

codetown wrote:

I don't understand why this is the case! Being this paid annually, shouldn't the two (gross and AER) be exactly the same (as it is for the older rates as well...)?

The AER takes into account that the 0.9% bonus only runs until 31/3/07.

KTF

Tempting (although 5.38% seems a strange rate) but I am going to wait and see what Landsbanki launches on Wednesday.

http://forums.moneysavingexpert.com/showthread.html?t=278477

YorkshireBoy

KTF wrote:

(although 5.38% seems a strange rate)

It's simply the result of their decision to pay 5.25% gross pa (paid monthly).

Milarky

This is another baffling product for one of the more baffling product providers. They have taken a leaf out of First Direct/HBSC (no interest in any month of withdrawal) and combined it with a high minimum balance. ( Maybe if they threw in £50 top open one....? Then we're talking!)

Bisoy

I also spotted this today and to be honest I am tempted. I have stoozed money with ICICI that don't need to be touched for at least 6 months.

I am thinking.........

Gordon_the_Moron

Its a good deal if you have enough cash but if you MUST make a withdrawal, even if you only need £50 withdraw the whole balance (as near the beginning of the month as possible as well, 1st day if possible) then deposit what is left of the balance in another account paying interest (go for a top payer, but anything is better than not doing it) and re-deposit the lot to earn interest the next month.

KTF

Does the 5k have to be paid in when its opened or do you have a few days grace to transfer it in?