(with ABBEY): Get the Market Leading 8.1% AER tax free Super ISA...

mosaic_2

Just thought this may be of interest to some.

Abbey is advertising as below

"Get the Market Leading 8.1% tax free Super ISA, when you put the same amount into a Guaranteed Growth Plan which provides a minimum return of 9% over 3 years.

You get instant access to the money in your cash ISA and if you already have an ISA with someone else, you can transfer it in for free. So you won't miss out on this great rate. To find out more about this unique Super ISA contact Abbey now:

Limited offer: 0800 032 4606
or visit your local branch or go to www.abbey.com/isa

THERE click on the "Save using your cash ISA" or the "Super ISA" Link for more info.

xxxxxxxxx

(..."Super ISA"

"Save up to £3,000 a year when you open with a Guaranteed Growth Plan.

8.1% tax free p.a./AER
Minimum opening balance £500"...)

Someone I know couldn't get to the pc quick enough when they saw it to open this ISA (with the growth plan of course).

Hope this helps!

Mosaic

arrowsmith

It's a dreadful deal, the 8.1% ISB bit is fine but the growth plan is poor. All the articles in the papers I've seen say the same thing.

KTF

That someone really should have done more research instead of looking at the interest rate and jumping in.

Supernova

Hopefully there's a 14 day cooling off period

mosaic_2

Oh dear! Is it really that bad?!! Has he walked into a money mayhem minefield?

I hope there is a 14 day cooler period too if it is so bad. :rolleyes:

JeremyZerg

The 'Guaranteed Growth Plan' is dreadful, true enough - but the 8.1% Super ISA is pretty attractive. The rate remains constant until May 2008 (and I believe the "cooling off" period is thirty days).

Obviously, you can't have one without t'other - but there is an escape route. You're not actually required to buy into the GGP; you just need to put the same amount into an "investment product" as you do into the cash ISA.

Abbey have a range of MultiManager funds, which are far from awful. In fact, the Equity Accumulation fund isn't bad at all (returning on average 15% yearly since launch). There are better funds out there, but they don't come with a Super ISA attached.

The relative security of the cash ISA alongside the more risky equity investments makes this a reasonable twin-product. IMHO.

Ian_W

Jeremy,
I think you may have misread the link on post#1 which refers to using your £7K maxi allowance either for a GEB or one of their MM funds.
The super ISA suitability page says:
You want to save up to £3,000 in a tax year without paying any tax on the interest and you want to put the same amount or more into the tax efficient Guaranteed Growth Plan
https://www.abbey.com/csgs/Satellite?c=GSProducto&cid=1157696136819&pagename=Abbey%2FGSProducto%2FGS_InfProducto

No option offered to invest in funds AFAI can see. Why would Abbey want you to make money when they can tie you in to a loser?

JeremyZerg

I think you may have misread the link on post#1 which refers to using your £7K maxi allowance either for a GEB or one of their MM funds.

To be honest, I didn't read the link. I knew what 'mosaic' was on about, 'cause I went into an Abbey branch a while ago and spoke to someone about the Super ISA.

This chap said that the advertising campaign specified the GGB, but that any investment product purchased automatically qualified you for the Super ISA.

I should know - I've got the MultiManager Equity fund in a mini S&S ISA and the same amount in a cash ISA. I went for it, in the end, because (as a staff member) I pay virtually no charges! =D

I considered a fund supermarket, but that would involve sacrificing 2/3% of my initial investment. And I don't feel overly confident in choosing my own funds just yet.

The great thing about the Abbey products, from my point of view, is that with no inital charges being paid the exit costs are near-zero. So whenever I want to enter the "real world", I can pack up my Abbey bags and leave.

(I expect I shall wait until the Super ISA rate expires in 2008 - then transfer the balance to NS&I and open a S&S Maxi for tax year 2008/2009...)

Ta.

KTF

FYI, at this point in time NS&I do not accept transfers in.

JeremyZerg

FYI, at this point in time NS&I do not accept transfers in.

Gosh, really?
That's (literally) incredible...
Do they not want my money?

Well, I'll find another ISA provider. Or see if the Abbey 'normal rate' is boosted.

jem16

JeremyZerg wrote: »

Gosh, really?
That's (literally) incredible...
Do they not want my money?

They want your money. They just don't want to pay you all that tax-free interest. Some of us have built up over £30,000 in ISAs.