Abbey launch Fixed Rate Monthly Saver - 7% (issue 6)

Kazza242

I just thought that fellow regular saving MSE's might like to know that Abbey have launched issue 6 of their popular Fixed Rate Monthly Saver, paying 7%. This issue replaces issue 4, which also paid 7% interest and was withdrawn from sale yesterday.

I have an issue 4 (paying 7%) which I opened last month. I've just spoken to Abbey on their freephone savings account telephone number (0800 389 9875) and they've told me that the account is also open to existing issue 4 and 5 (at 8%) monthly saver customers.

- The minimum monthly deposit is £20 and the maximum £250 (13 month term).

- 13 consecutive monthly payments must be made.

- There is one difference from issue 4, which is that when this account matures it is converted into a Flexible Saver account, currently paying 3.45% for balances of £2,000+. While issue 4 converts into Abbey's standard monthly saver, currently paying 5.20%.

It has been added to Moneyfacts, here.

The account is also on the Abbey website here.

RayWolfe

Well done Kazza! Not only the heads up but finding out if we existing holders can take the new one. You're getting better and better. ;-)

Milarky

I wonder if Halifax have got anything up their sleeves. Their regular saver at least 'rolls over' each anniversary, but they could consider upping the limit of £250 if not the rate (which has been 7% since December 2004 BTW) Does anyone on the grapevine know any rumours?

tom188

Milarky wrote:

I wonder if Halifax have got anything up their sleeves. Their regular saver at least 'rolls over' each anniversary, but they could consider upping the limit of £250 if not the rate (which has been 7% since December 2004 BTW) Does anyone on the grapevine know any rumours?

I doubt it. The account's a loss leader but is doing its job in bringing new money to HBOS. Its still one of the highest interest rates around and brings in a good supply of new business so there is no real reason to change anything.

Dagobert

Two years ago, I applied for an Abbey regular saver in December, which matured on 1st January 2006, which is a most unfortunate time to withdraw the funds.

I sent them my withdrawal instructions before Christmas but Abbey was working on a 2 week backlog, which resulted in my funds being transferred 2 weeks after maturity only, see [post=2827877]Abbey withdrawal saga[/post].

RayWolfe

I did the same, but fortunately I have a local branch and went in and demanded my money on 2nd January (1K of it in cash, which was all they would allow, the rest with a cheque). But I seem to remember they couldn't credit the interest for another day ... bizarre.
But you make an excellent point; avoid end December for any maturity.

Kazza242

RayWolfe, thanks I'm glad the info has been helpful.

Dagobert wrote:

Two years ago, I applied for an Abbey regular saver in December, which matured on 1st January 2006, which is a most unfortunate time to withdraw the funds.

I sent them my withdrawal instructions before Christmas but Abbey was working on a 2 week backlog, which resulted in my funds being transferred 2 weeks after maturity only, see [post=2827877]Abbey withdrawal saga[/post].

Hi Dagobert,

You've raised an important point. However, don't forget that monthly saver issues 4, 5 and 6 have a 13 month term and don't allow you to make your first payment until the month after the account has been opened. Therefore, if you opened an account in December (2006), then your first payment wouldn't be until January (2007). This would mean that your 13th and final payment would be in January 2008 and your account would mature on February 1 2008.

Dagobert

Kazza242 wrote:

if you opened an account in December (2006), then ... your 13th and final payment would be in January 2008 and your account would mature on February 1 2008.

Good thinking!
1st February isn't quite ideal, account maturing on Thursday night, earliest withdrawal on Friday. For those relying on a cheque being posted a whole weekend would be lost.

But then again the the earliest good withdrawal date would be April!

ED

Abbey's site re Issue 6 of the account today states at "See the facts at a glance" :

"Your account will automatically become a Monthly Saver account at this time" - ie 1st day of the month following the 13th monthly payment into the account.

This varies from Kazza's observation (see OP) of auto-conversion into a Flexible Saver account (at a lower rate than the basic, variable rate Monthly Saver). Could it be that leaflets have different info to online sub-page?

Perhaps its academic for those of us who will withdraw all funds upon maturity!

My method for this is a branch visit on the 2nd working day of the appropriate month, equipped with passbook and iD proof, to instruct immediate supply of a counter cheque (or instant transfer to Abbey cheque account), then posting a cheque for next-day interest-earning via (for eg) Coventry BS. Abbey's system repeatedly failed to allow staff access, but it worked on the 3rd working day.

Dagobert - you've got me thinking those 'money kidnappers' at Abbey may have timed account launch rather craftily...!

Kazza242

ED wrote:

Abbey's site re Issue 6 of the account today states at "See the facts at a glance" :

"Your account will automatically become a Monthly Saver account at this time" - ie 1st day of the month following the 13th monthly payment into the account.

This varies from Kazza's observation (see OP) of auto-conversion into a Flexible Saver account (at a lower rate than the basic, variable rate Monthly Saver). Could it be that leaflets have different info to online sub-page?

ED, when I phoned Abbey yesterday about the account, the advisor took me through the T&C's over the phone. He specifically said it was important to note that the difference with this issue is that it converts into a Flexible Saver rather than a variable rate monthly saver.

He has posted two application packs to me, but with the Christmas post I haven't received them yet. He said that an updated T&C's leaflet will be sent out with each application pack. I'll wait until I receive mine and then I'll check this. Although, you're right that it doesn't matter too much if you're withdrawing your money as soon as the account matures (which most MSE's will be doing;)).

Dagobert

ED wrote:

Dagobert - you've got me thinking those 'money kidnappers' at Abbey may have timed account launch rather craftily...!

Well, I wasn't too happy when account closure took 2 weeks followed by the cheque disappearing in the post for 9 days. Mind you, I got £10 compensation.