A+L to launch Market leading online account 16 May 2004 at 5:02PM in Savings & Investments 15 replies 2.5K views

isasmurf

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.

Kazza242

saver smurf - This looks like a competitive rate especially if it doesn't include a bonus.

I wonder whether you will need to have a current account with Alliance & Leicester in order to open this online savings account?

steviewander

damn just as I opened an ING direct account today. I'll just have to open a A&L one on Weds now won't I

Noxid_2

My only problem would be (if they put in typical terms and conditions) is that I dont have a current account and Im still under 18.

Anyway I will open an Egg account if A+L dont offer an introductory offer

steviewander

This 4.85% savings account is now available online for applications:

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.

Kazza242

My only problem would be (if they put in typical terms and conditions) is that I dont have a current account and Im still under 18.

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.

ED

4 potential hitches (see base of primary page for the a/c + Terms & Conditions) :

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

Noxid_2

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.

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)

Kazza242

ED - Another thing to add is that A&L don't provide any sort of guarantee to continue paying above (or equal to) BOE base rate. I think I'll wait a bit longer before I think about applying for this account.

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.

Noxid_2

I use the internet or the branch. Cash machines are too risky especially when little kids call out your pass code to everyone in the branch (like happened to this poor guy recently) ;D

rinoa778

Does anyone have this account? I've applied because its rate is 5.1% gross. It's the 2nd best in the best buy tables but it's the best for me since I'm under 21.