AA Internet Extra Issue 5 3.20%

shirehorse78

Lollytrolly wrote: »

Hi,
Excuse my ignorance, I'm thinking of opening the new AA fixed Saving 3.20%, If I were to put £10,000.00 in now and left it as £10,000.00 till it matures, will I gain the same amount at maturity, if I were to open with £100.00 and put £9,900.00 halfway through the year or towards the end instead? Will I gain the same amount of interest?

Is the interest gained throughout the year, or at maturity stage?

The AA will only pay you interest if they have your money!

3.20% on £10000 paid in at the start will pay you ~£324 interest

3.20% on £100 at the start gives you ~£3.24. 3.20% on £9900 paid in after six months (and only earning interest for the remaining six months) will get you ~£159. This totals £162.24, about half what you'd get if you'd had the full amount in the account for 12 months (which makes sense - they've had the majority of your money for only six months, so would pay half the interest compared to if you had the full amount in the account for a year).

saveonarola

Upgraded from Issue 4 to Issue 5 earlier today. Took about eight minutes on their 0845 number. Did feel a bit aggrieved seeing as I only have about £150 in the account at present. It'll take about 18 months at the higher interest rate to recoup the cost of the phone call!

droopsnoot

But my account is already Issue 5, that's why I wondered if they'll do it automatically. When I upgraded from Issue 3 I had two phone calls of around that length, the first one annoyingly cut off just as the chap on the other end was reading out the final statement that you have to reply "yes" to, so I had to start all over again.

I'll give it until Tuesday for them to reply to the email, and if I hear nothing then I'll grudgingly phone them. That's the trouble with Pay-As-You-Go stuff, you find yourself counting much more than you would otherwise.

psychic_teabag

droopsnoot wrote: »

That's the trouble with Pay-As-You-Go stuff, you find yourself counting much more than you would otherwise.

Rather off-topic, but can you use one of the alternate call providers to cut costs. Or defer the cost until later. (Depends on your reason for choosing PAYG.) I saw 18189 mentioned in the weekly email and had never thought to use such a service before, but am considering it now.

droopsnoot

Well, give them their due, they replied to the question by email, yesterday evening. But I haven't had an answer different to any of those above, so I've got back to them to clarify.

jem16

Could anyone that has changed over to the new Issue 5 from another issue please tell me what interest rate is showing when you login please?

I phoned last night to change from Issue 3 to Issue 5. It's now been done as shows Issue 5 now but interest rate is still showing as 0.5%.

I'll phone tomorrow as well but just wondered what others had found.

vulcan59

I changed from issue 4 to 5 yesterday and mine also shows the old interest rate. The person I spoke to yesterday warned me this would happen and said it would change to 3.2% within a few days but assured me that I would be earning 3.2% from today. I remember the same thing happened when I changed from issue 2 to 4 earlier this year.

jem16

vulcan59 wrote: »

I remember the same thing happened when I changed from issue 2 to 4 earlier this year.

I changed from Issue 1 to Issue 3 a while ago but I cannot remember what happened with the interest rate.

I'll give it a few days and see what happens but it wasn't mentioned to me last night.

noh

I opened a new issue 5 online yesterday. The currently displayed interest rate is 0%.
I suspect it will change in a few days.

meggsy

meggsy wrote: »

They will close the account with interest and open a new issue 5 account. Found it really easy to phone them tbh as I have previously gone through the process online.

"Existing savers

If you would like to transfer your existing AA Internet Extra into our AA Internet Extra (Issue 5), just call us on 0845 603 3358. We will transfer your account on the day you call"

As I have a closed account from 2009 I assumed issue 4 would be closed however as others have said they have updated 4 to 5,
that was showing last night, and tonight the 3.20% is showing.