Alliance and Leicester have increased their Direct Saver rate to 6.1%

emeraldbugle

It was 5.8%. Also they have reduced the minimum balance from £5,000 to £1,000.

http://www.alliance-leicester.co.uk/savings/index.asp?page=dsaver&ct=savingshome

rizla01

WHOOPEE!

zag2me

Thats a good rate!

PosterBoy77

However you don't receive any interest in any month when you make a withdrawl. I would not bother with it for that reason.

Innys

I agree with Mikael.

I would not invest with A & L for that reason. Icesave's rate is not much less and doesn't suffer from the same restriction.

emeraldbugle

Yikes, not spotted that one, best move on!

ED

Innys wrote: »

I agree with Mikael.

I would not invest with A & L for that reason. Icesave's rate is not much less and doesn't suffer from the same restriction.

My policy, too. Shame on A+L for copying HSBC and First Direct. Any other financial institutions have the same rule of nil interest on the full balance in any month in which a withdrawal is made? I feel like writing to all of them, urging copying of institutions that conversely encourage the savings habit.

BornSloppy

Is it still a good deal for people who wouldn't make withdrawals ?

emeraldbugle

Yeh, but I am really kicking myself, why didn't I spot it when I opened it at the end of May when it was 5.8%. Oh well we live and learn, at least I noticed it, imagine if I'd left it for months.....

Really think these banks, should make it more obvious!

Graham_Devon

emeraldbugle wrote: »

Yeh, but I am really kicking myself, why didn't I spot it when I opened it at the end of May when it was 5.8%. Oh well we live and learn, at least I noticed it, imagine if I'd left it for months.....

Really think these banks, should make it more obvious!

It's in bold on the first page you read about it!!!! It's highlighted with a bullet point.

How can it be made any clearer?

You missed that when you opened the account? If so, you were not reading, as anyone who opens any type of account should.

The direct saver is great, but you need 2 savings accounts. Majority in the direct saver and another account with a pot of money to dip into should the need arise.

Innys

BornSloppy wrote: »

Is it still a good deal for people who wouldn't make withdrawals ?

Yes - but to most people this is too much of a handicap. After all, the whole reason behind saving is that one day you will need them.

You could, as an alternative invest some money and then only ever take out the whole amount. Again, I feel this is too onerous.