A & L 12% Savings account

YorkshireBoy

lovemystudentloan wrote:

BE CAREFUL THOUGH, THERE ARE CATCHES!

I agree, but you haven't highlighted any of them!

With my account, although the savings account lets you save £250 a month = £3000 a year it only pays interest up to £2500 so I reckon the new version will have the same catch

No it doesn't. The regular saver account pays 10% gross pa on ALL money in the account. If you save the maximum £250 per month, you'll enjoy the same 10% rate on the full £3K in the final month.

- that's why you can't change the amount you save once you set it:eek:

No it isn't. The amount chosen at the outset is just a general condition of the account. It saves on admin.

The current acc is similar, only pays interest on first £2000,

No it doesn't. It pays 5% on balances up to £2,500 and 0.1% on anything over that.


Time to get the T&C's out? :rolleyes:

wheely

hi there lovemystudentloan,

"Remember to get refered too for another 50 quid, yours truly is of course willing and able.... "

drop me a line and I will happily do this for you. We each get £50 if I understand the T&C correctly?

Will be recommending my girlfriend shortly too! Merry Xmas!!

bigliz

Could some kind person do the math for me please

I have an interest only mort (soon will anyway) fixed at 5.14%. I was planning to overpay by £250pm, would I be better off setting up this then paying off the max 10% at the end of the year??

Thanks

jimbow25

Would I be right in thinking that this 12% regular saver is only available with the Premier Current Account that only pays 1.5% interest, and not the Premier Direct Current Account with the well-known 6.1% introductory interest rate? So you can't have the best of both worlds? That's what their website suggests.

Dan29

jimbow25 wrote:

Would I be right in thinking that this 12% regular saver is only available with the Premier Current Account that only pays 1.5% interest, and not the Premier Direct Current Account with the well-known 6.1% introductory interest rate? So you can't have the best of both worlds? That's what their website suggests.

Yes that's correct.

james10999

I originally posted this on Rpoints, however I want to share it with people if they find it useful:

A&L 12% Maximum earnings

Some people get confused with this and work out they will get £360 interest as they think the full £3000 gets interest over 12 months. The interest is actually worked out monthly but only given to you once the full year has finished since opening the account

This is how it is worked out if you invest the maximum £250 in each month:

£250 / 100 = £2.50
£2.50 x 12% = £30
£30 / 12 months = £2.50

pretty simple until now, so every £250 you put into this account, you will earn £2.50 each month on every £250 that is in your account. So say in the 3rd month, when you have £750 in there, you will earn £7.50 for that month.
Now to find the total amount of interest for the 12 months:

1st month - £250 in account, £2.50 interest
2nd month £500 in account, £5.00 interest
3rd month - £750 in account, £7.50 interest
4th month - £1000 in account, £10 interest
5th month - £1250 in account, £12.50 interest
6th month - £1500 in account, £15 interest
7th month - £1750 in account, £17.50 interest
8th month - £2000 in account, £20 interest
9th month - £2250 in account, £22.50 interest
10th month - £2500 in account, £25 interest
11th month - £2750 in account, £27.50 interest
12th month - £3000 in account, £30 interest

After 12 month the account is closed and interest from all these months is added up and returned to your current account along you with your initial savings
Therefore you will recieve:
£195 interest + £3000 invested = £3195

If you are paying 22% tax you will recieve:
£152.10 interest + £3000 invested = £3152.10

If you are paying 40% tax you will recieve:
£117 interest + £3000 invested = £3117

Hope this helps

Indispensable_Hobbes

I've had a monthly saver for the past year and will be putting the balance in my isa next month. perhaps i should have just been putting the savings into my isa instead.

InMyDreams

jenyking wrote:

I've had a monthly saver for the past year and will be putting the balance in my isa next month. perhaps i should have just been putting the savings into my isa instead.

Depends on the interest rates of your regular saver compared to the isa and what rate of tax you pay. I would say probably you're better off having done what you've done, but how much better depends on rates and tax. Remember that paying regular amounts into your isa will have the same 'interest earning' effect that james10999 has just explained. You won't get the full percentage on the whole amount unless the whole amount was in there for the whole year. Or were you drip feeding from another saving account?

IMD

InMyDreams

bigliz wrote:

Could some kind person do the math for me please

I have an interest only mort (soon will anyway) fixed at 5.14%. I was planning to overpay by £250pm, would I be better off setting up this then paying off the max 10% at the end of the year??

Thanks

Yes. Assuming no penalties for paying off the 'max 10%' you refer to, and you use the whole of the balance of the saver at the end of the year, including all the interest it's accrued. The interest you will have made from the regular saver will more than compensate for the extra interest you'll be paying on the mortgage by not keeping up your £250 overpayments.

Milarky

It is now 30th October and the first regular payment was due for collection on 28th. So far nothing has occurred. Can anyone confirm if they don't take payments over a w/e (as opposed to Mon to Fri)? Also my 'standing orders' show nothing set up (which A&L were meant to do) either. Can anyone confirm if before/during/after the first payment is taken any standing order information is shown in the appropriate place?

Thanks

M