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

sashacat

why are people not transferring to the A&L 's 7% ISA. I also have the direct isa 2 with them but want to transfer to the new 7% issue. I already have a premier direct account with them.....can I not do this transfer? I have looked on their website and it doesn't say I can't.

Sillychuckie

KTF wrote:

What prevents you from topping it up in April?

Because the issue ends on 23rd March, and the terms state you can not put money into an ISA that is no longer an active issue.

MiserlyMartin wrote:

I'm confused. Is this 60 days loss of interest regardless if you give them 60 days notice of a transfer or withdrawal?

Yes, 60 days loss regardless. You can not withdraw without penalty whilst in the fixed rate period (i.e. prior to October 2008).

What IS NOT made clear is whether the penalty applies to the amount you transfer, or the full balance. Id assume the full balance if it isn't specified (which is a pretty heavy penalty unless you only just opened it).
You'll essentially be locking it away till Oct 2008 at a fixed rate of 6.1% with no oppurtunity to put more funds in after 23rd March.
Regards.

KTF

The 7% ISA is available to new business only. Also:

Current and existing ISA funds may not be transferred to Premier ISA.

From: http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-isa&cm_re=al1rfshpqt-_-03-_-htmlrightfeb07&ct=htmlright3pisafeb07

user2006

I think its a bit too soon to say what i'll be doing with my ISA funds but i know i will leave it as late as possbile. With another interest rate change in the next 2 months ( my estimation), i don't want to transfer any funds, i wouldnt want the hassle and i believe banks and building societies will bring out new deals/rates closer to the end of the tax year. My advice would be to hold out, for a matter of £5-£10 is it really worth the hasssle.

masonic

user2006 wrote:

for a matter of £5-£10 is it really worth the hasssle.

No, but for £50-60 it might be.

GloriaGaynor

I have an A&L Direct Issue 2 ISA. I plan to transfer to a new ISA with a better rate shortly (probably the Kent Reliance ISA at 5.71%). Does anyone know if A&L charge a transfer out fee from its Direct Issue 2 ISA if you move all funds (incl. previous years) to a new ISA provider? Apparently it used to charge £25 but I cannot find any mention of this on its website or in the user guides.

Kazza242

GloriaGaynor - The A&L Direct ISA issue 2 does not have a transfer out charge. Like you, I recall that they used to charge £25 for transfers out, but this penalty was removed some time ago.

Indispensable_Hobbes

I'm so annoyed my premier direct account was opened a mere 2 weeks before they started offering the 7% ISA!!! I could have started subscribing to that in April and transferred my existing balance to a different bank with a better rate (couldn't I?? perhaps I'm confused)

Anyway... Not sure what to do with the balance of my Issue2 ISA.

I'm not willing to open an account that stops me adding to it once the product is no longer available. I need flexibility with my money.

I also begrudge having to pay a fee to transfer out (not applicable at the moment but if I leave and want to change next year aswell theres the penalty) so I'm going to see what A&L offer next month and try and find a good rate with no penalties to transfer at a later date.

sly_dog_jonah

In answer to the original question, I finally made my mind up and opened the Newcastle 6.1% fixed ISA online this morning. As A&L don't accept transfer out requests in writing I rang them up and they were happy to arrange the transfer the funds to Newcastle BS with my application number as a reference.

Even if interest rates go up before they come down, I'm quite sure that 6.1% AER for 20 months will be great return over that period. I'm unlikely to be calling on it as a house deposit in that window, as a single-income first time buyer there's very little that's affordable in the South East. It's just slightly annoying I won't be able to put my 07-08 and 08-09 subscriptions into the account too, instead I'll just have to go for the best headline rate.

humfer

Well unless the Direct Issue 3 which launches tomorrow included any sort of bonus, I think I have made my mind up on what to do. April 6th open new ISA with NS&I and stick in £3k, and then at the end of April move my eixsting A&L to Abbey (or whoever is the leading rate allowing transfers in at that date). Just checking this is allowed (I am easily confused;) ) - i.e. open a new ISA and put in £3k AND transfer my existing ISA to another provider in the same tax year?