Alliance & Leicester Cash Isa

w0z

The £25 transfer out charge on this account renders it, in my opinion, as not a best buy, since this is an effective reduction of 0.83% on the rate, although I suppose one could just close the account and withdraw...

This condition does not 'jump out' on the internet application, and I have e-mailed them to ask why this is the case.

Slimeball20

Thanks w0z. Answered question I posted in thread before I looked at board!!

Michael.

cjanderson

I'm going for it, move the entire 12k from If to here, so make £48 a year more i think. If they drop, i'd have 15k in there, so the £25 charge would be less costly to me overall.

Have applied and being accepted. Just need to get the papers to do the transfer as can not subscribe to a 04/05 isa as have one. they site is a bit confusing on this point.

lipidicman

Yes, it is a better deal if you have more in there - then the penalty is less compared to the gain. My view is that any account with an exit penalty is likely to drop the rate - if you dont have an exit penalty you have to keep the rate attractive.

bluesnice

Is there a £25 charge with this ISA if you withdraw and close rather than transfer? I don't seem to be able to find this info on the website.

thanks

bluesnice

Answered my own question.. found out..no charge for withdrawals only transfers.

Do you think the rate will go down over the next year or two? How do these non cat standard ISA work? I only want to put in for the short term as its gong to be used as a deposit on a house.

lipidicman

Just a warning about withdrawing - dont withdraw and try to pay into another ISA, you will lose the ISA status - you MUST transfer to keep previous years allowance.

blinko

whynot just go to abbey paying 5,35% and not pay any charges if you decide to move it