A&L Direct ISA 2 Acc Holders - What are you planning when bonus expires?

humfer

Currently have a Direct ISA 2 which is currently 5.70% until end of April when it will drop down to 5.0% (excluding any possible BOE base rate changes). Seeing that A&L have just launched a 7% ISA as a promotion with their Current Account, do people still think they will launch a Direct ISA 3 with another bonus, or you planning on transferring your cash to somewhere better?

mattih5

Hi humfer, I am in a similar situation as you, I have nearly £6,000 in my A&L ISA and am wondering where the best place would be to stash it after the bonus expires as it will not longer be as competitive as other ISA's on the market. I can't have their new ISA because I already have the current account with them and have used this years allowance in the NS&I ISA.

Ian_W

It's probably a bit too early yet but I'll be looking to change rather than leave it at 5% if A&L don't offer any better - ATM the Yorkshire BS E-Isa at 5.65% is probably my favourite.
https://www.ybs.co.uk/savings/online/eisa/index.jsp
They also do a 30 day notice one at 5.75% but that, like A&Ls, is inclusive of a bonus for 1 year from when the account is opened.
https://www.ybs.co.uk/savings/taxfree/30day_notice_isa/index.jsp

Lets all hope for something better to come along before April.

masonic

I think another competitive ISA from A&L is highly unlikely. I'll probably also be applying to YBS at the end of the month if nothing comes along in the mean time.

mattih5

Can an ISA be applied for if you have used up your ISA allowance to have it ready for the start of the new tax year? When is the best time or the most competitive time for ISA's to arrive on the market. I have always opened new ISA's around the end of April/start of May.

ctdctd

I'm going for the Newcastle B/S at 6.1% fixed for 20 months - or I will be if they send me the paperwork! Starting transfer now so I don't get stuck in the rush come April.

mattih5

Fixed for 20 months! - That's good. Are there any exit fees?

KTF

What about the Ruffler bank one?

mattih5

Isn't there a minimum investment for this one? And I don't think they are regulated by the FSA.

pardal51

mattih5 wrote:

Can an ISA be applied for if you have used up your ISA allowance to have it ready for the start of the new tax year? When is the best time or the most competitive time for ISA's to arrive on the market. I have always opened new ISA's around the end of April/start of May.

Yes if you are transfering your exisiting ISA... and always read T&C of new providers...

Sillychuckie

The newcastle one does indeed look fantastic.
The only bug that annoys me is that interest is not repaid back into the ISA. Instead, it is paid into a current account of your choosing.

This always annoys me, as it is like taking money from investments instead of reinvesting. If my interest on the isa over the course of a year is say £500, thats essentially increasing my allowance if they let me keep it in.
Still, i dont want to miss out on the 6.1%.
grrr, what to do.


EDIT: Oh no. I tell a lie.
Their app form is misleading, stating:
"Please indicate how you wish to receive your interest payment:
Paid direct into a bank/building society account:"

But their t's + c's clear it up:
The interest on the Direct Investment Bonds can be paid annually (on the 20th of April) each year. The interest is credited back into the ISA account only.

Edit 2:
Ok, now im confused. They wants BACS details of a current account to pay interest into...
Grrr. I'll stop the app process and call them tomorrow. Pain in the backside.