A+L to launch Market leading online account

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Doing my weekend Personal Finance browse through the online papers (hey, has a true Money Saver I'm not paying for them
) I came across this:
Alliance & Leicester will launch their first online savings account on Wednesday, offering 4.85%. This, according to the Times, does not include introductory rates.
http://business.timesonline.co.uk/article/0,,8214-1109196,00.html
So it looks like ING have finally been knocked off the top of the Best Buy tables.

Alliance & Leicester will launch their first online savings account on Wednesday, offering 4.85%. This, according to the Times, does not include introductory rates.
http://business.timesonline.co.uk/article/0,,8214-1109196,00.html
So it looks like ING have finally been knocked off the top of the Best Buy tables.
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I wonder whether you will need to have a current account with Alliance & Leicester in order to open this online savings account?
Anyway I will open an Egg account if A+L dont offer an introductory offer
http://www.alliance-leicester.co.uk/savings/index.asp?page=online-saver&ct=flashsecondaryonlinesaver485percent
There is a restriction on maximum balance though (unlike INGDirect apparently) which is £25,000.
Noxid - The minumum age requirement to be accepted for the A&L account is 15, but you must have an A&L cardcash account or current account to qualify.
Thanks for posting the link steviewander.
1) "It takes 24 hours to transfer money between your Online Saver Account and your Alliance & Leicester Current Account". [Competitor's online a/c's facilitate instant transfers.]
2) "or 3 working days following the date of transfer for transfers between an account held with another financial institution". [ie an extra 1 - 2 banking days (+ weekend, if interrupting) compared with BACS transfers used by most other banks & bdg societies.]
3) "We are entitled to pay different rates of interest on the balance in Your Account according to the amount invested" [tiered rates coming soon, perhaps similar to those being launched by Abbey?]
4) "If you instruct us to make regular monthly transfers from your account to a current account held with another financial institution, your account will be debited two working days in advance of the due date."
Perhaps the A&L online a/c will be useful for people retaining, long-term, a lump sum (£25,000 max allowed) but not so good for frequent movements. 4.85% gross seems a good rate. Here's hoping it stays highly competitive, even for modest balances.
Plus points include :
- 4.85% gross interest (variable), currently on just £1+
- Interest is calculated daily
- Interest paid starting the day of receipt from the customer's A&L current a/c (or the day following receipt from the customer's nominated external current a/c). Note : they will not accept deposits by cheque.
- statement every 3 months whilst a/c active
Im sorry but I believe there a way too many hitches ie possible tiering with this account. My other problem is that my nearest A+L branch is 15 mile away and a hour in either direction. I cant open up a current account unless I go to a branch (because once again I am too young (under 21)) and I have GCSE's to revise for.
Well Halifax have got my money untill the next rate rise (or maybe not I want to buy a new computer)
Noxid - I think it's better to stick with Halifax in your case. I've heard that Halifax will be announcing whether or not they intend to increase interest rates on their variable rate accounts next week, hopefully they will
On a negative note: I'm sorry to hear that Halifax are selling a quarter of its cash machines to an outside operator that will charge up to £1.75 for each withdrawal. >:(
Source: The Daily Mail, Wednesday May 19 2004.
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