alliance and leicester

samiam_4

I've just applied online to the aboves prem plus account after reading Martin's best buy section but after reading about peoples bad experiences with switching i'm having second thoughts.

My paperwork should arrive next working day so i do have time to change my mind as i haven't signed anything yet.

I'm now thinking of goinig to smile.co.uk.

Should i continue with A&L or go with smile?

Thanks inadvance for the advice.

carl310166

I have the A&L pack in front of me right now.

I have thought about changing for a while,but i am going to sign the forms and send back tomorrow,i just think everyone has problems sometimes,so i will give them a go,but i will monitor the account switching service very carefully,and maybe change the important ones over myself.

At the moment i am with Barclays 0.1%,and paying £144 per year for the additions plus account,from which i use the travel insurance and european breakdown cover.

I can get the travel ins from A&L and pay a max of £65 for european cover from somebody else,i have seen cover at £25 for Rowett Ins,but i am trying to find out what cover it gives.

I will try and keep £2500 in the account to get the max interest,anything over can go elsewhere.

If you think your current bank account is bad,consider doing it,but if you are with one of the good ones,is the potential hassle worth it,it's up to you.

MarkyMarkD

I would recommend making the switch, but not necessarily relying on the switching service. If you DO use the switching service, you should get the maximum interest free overdraft they will give you (I probably didn't need to point that out to MSEs ) BUT leave enough money in your OLD current account to cover your direct debits (say a whole month's worth at first) until you know that each one has been successfully transferred to the A&L account (i.e. when the first payment is collected from A&L - which you can monitor daily using internet banking).

If you take this approach, you will not have any bounced DDs and you won't get any stress from charges etc.

Once each DD has successfully transferred, you can reduce the pot of money in the old account to reflect the fact the extra isn't required.

The occasions when people have had hassle with the switching process appear to be where they have either not opted for the free initial overdraft, or have seen it as a pot of stoozing money and have instantly removed it elsewhere, leaving their old current account with no balance on it ... obviously if you do this, any DDs hitting the old account will tend to bounce.

carl310166

Just a quick question about the interest,if anyone can help.

In the T&C's it said that they will pay the 5% only on the first £2500,so do i have to leave in £2500 after my bills have come OUT of the account to maximise the interest.

I am assuming i won't get the best interest if i pay in say £3000 monthly,then in the next week i pay out say £2000 to my DD's.

Thanks.

Walletwatch

carl310166 wrote:

Just a quick question about the interest,if anyone can help.

In the T&C's it said that they will pay the 5% only on the first £2500,so do i have to leave in £2500 after my bills have come OUT of the account to maximise the interest.

I am assuming i won't get the best interest if i pay in say £3000 monthly,then in the next week i pay out say £2000 to my DD's.

Thanks.

They will pay you 5% interest calculated daily, on any amount upto a max of £2500, so if you have 2500 in your account one day, you make the most of the interest rate, and if the next day, a couple of DDs are paid out, causing the balance to drop to 2000, you get the 5% only on the 2000. On the other hand, if you fund your account with 3000 upfront, the balance on the first day before the DDs are paid out is 3000, out of which only 2500 qualifies for the high interest - the balance, I think is at a pitiful rate of 0.1% or something.

Having taken you through the mechanics, I must add however, that this is a current account and should be treated as such. Secondly, given the scale of the amounts, one doesn't really lose out on too much by not maxing the interest income on the account. So, there is no point in micro-managing the account to ensure it maxes out the interest that you make on it. Best to try and keep the balance in the £2000-3000 range.

carl310166

Thanks.

You are right,i will follow your advice.

MarkyMarkD

The best way to manage any current account, if you are paid monthly, is to get all of your DDs to go out on payday or immediately thereafter ... so your balance is just your clear cash. This eliminates significant up and down movements in your balance and would enable you to most successfully maximise the interest where there is a limit like with this account.

samiam_4

thanks for all the good advice. i'm feeling much more confident about the switch now.

i'll keep my natwest account alive until all the direct debits etc. have been transfered.

thanks everyone.

Jane.tweedynn

Been with them since Aug04. Moved from Barclays. I was one of the few who rejected the switching services and moved the direct debits myself, all but one could be done on-line.

If you try not to have any contact with them and do everything on-line things will be ok. I notice the interest rate has been reduced from 5.50% to 5.00.

For me the rate is irrelevant since when I have been paid and paid bills I move all my money including maxing to my overdraft limit into the on-line saver which pays 5.35%. If I need some money I just transfer it on-line and the money is available instantly.

It takes a while to get used to A&L but once you accept their minor failings the benefits shine through.

TREVORCOLMAN

I have just opened a A&L Premier Plus Acct which was very straight forward. However I am sorting out my DD changes myself! Doing them one at a time and leaving funds in my other current acct till it is all sorted out. OK so far!

The £20 for opening on line was there straight away so I was happy with that!

HugoRune_2

I've just opened my account with them and got the free 20 quid, cheers Martin.
You dont have to switch any direct debits to get the account, the literature they send you is a bit misleading and suggests you do have to.
Does anyone know the free overdraft details on this account? I'd like to make some more money out of them as the swines refused my credit card application!