A&L 5.38% Direct Saver

oldfella

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

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pay it in when you like - anything under £5K receives no interest - I prefer to put a few pounds in first to make sure it works before transferring significant amounts

probably a good idea to open it soon - A&L have a habit of replacing them with a lower rate version

Mike

KTF

Great! I will open it all up then transfer the money over.

t_i_g_e_rr

This looks good!

One thing I noticed that may be worth pointing out for some people, is that you can have the interest paid into your current account. This would be a way to take money out each month without losing the interest. If you didn't need the cash, you could always pay it back into the savings account. The drawback, of course, is losing over a week's interest due to 3 days transfer each way (plus a weekend).

t_i_g_e_rr

Secret_Wookie

Anyone got any feedback after opening one of these?

Most of the anecdotal stuff I've read about A&L seems to indicate that their service isn't as good as the rates they offer.

codetown

Just avoid using their services and go for the automated online system which is what I do. Their online banking is not bad, so if the rate interest you use just that one!

meanmachine_2

Secret_Wookie wrote:

Anyone got any feedback after opening one of these?

Most of the anecdotal stuff I've read about A&L seems to indicate that their service isn't as good as the rates they offer.

2 things:
They take forever and a day to transfer via direct debit - 10 days on occasions.

They will launch a new product then slowly and quietly let it die. Cynical and designed to lure the greedy.

I prefer someone like ING who at least ensure their one account pays a decent rate.

masonic

meanmachine wrote:

designed to lure the greedy.

Are you implying that it is wrong for people to try to get those sorts of rates on their savings?

ReportInvestor

I object to an account being able to advertise itself in the Sunday press as the best instant access account when it pays a withdrawal of £1 stops all interest on £999,999 for that month.

That's a perversion of the meaning of "instant access" IMHO.

whambamboo

ReportInvestor wrote:

I object to an account being able to advertise itself in the Sunday press as the best instant access account when it pays a withdrawal of £1 stops all interest on £999,999 for that month.

That's a perversion of the meaning of "instant access" IMHO.

It's rubbish isn't it.

If you withdrew once per year, which isn't unreasonable, the rate falls to 4.9% AER

That compares to IceSave's 5.20%, which has a Base Rate +0.25% minimum guarantee.

This account is a complete con: when the rates go up next month, A & L probably won't not pass it on, and then can you move your money? Well no, not without losing 0.4%.....

Even if you only withdraw every 2 years, the rate falls to 5.148% AER - and that assumes interest rates stay the same for 2 years, and if you believe that you'll believe anything.

Obviously it beats Halifax Liquid Gold or something, but there is no way that this account is the best on the market.

IMO this account is unsuitable for anybody, as it's abundantly obvious that they will sucker you in with the good rate, and then it will fall behind over time, and then they screw you on the withdrawal fee of 0.44% of your balance, when you try to transfer to an account that's still actually paying a good rate in 1-2 years time

Would you want to pay 0.44% to your bank to receive your money?

No, me neither.

Absolute garbage....

KTF

I opened mine on the basis that I would transfer anything out to a better account if the rate dropped/didnt move with the base rate/etc. so the penalty for transfering money out wouldnt apply.

Its a bit like a Bond rather than an instant access account with the penalty for early withdrawals. If you are planning to dip into it every now and again then the Ice Save account may be better. If you are planning to lock it away for a longer term then the A&L account shouldnt post any problems.

As with anything, make sure you understand all the T&C before you open one up - or do as I did and open both