Interest not paid on A&L Direct Saver

littlemissmoney

They said anyone with a balance between £1K and £5K has not been paid interest this month due to their error. They will credit us with the interest by the end of this month :rolleyes: She confirmed that the interest will be compounded for next month. Hmm. Impressive service ay :rolleyes:

molerat

My interest was added today so check your accounts :T

littlemissmoney

molerat wrote: »

My interest was added today so check your accounts :T

None for me yet :rolleyes:

Crabman

I've been in touch with them as I've also had this problem - apparently because the min limit was reduced from £5k to £1k they had a tech fault meaning anyone with £1000-£4999 wasn't paid automatically at the start of the month.

They say this will be paid out 'later' and they'll also send a letter confirming that. However, WeatherMan raises a valid point about the compounded interest which is being missed :wall:

Alliance Leicester screwed up for me in a separate incident earlier this week so they aren't in my good books at the moment :rolleyes:

EDIT - interest is now showing in my account, dated 1st July called "Interest Correction". If it's dated 1st July I hope we'll get interest, will need to check on that on 1st August!

Crabman

LittleVoice wrote: »

I believe it is better to close such accounts on the first of a month rather than just reduce to the minimum balance. You would still be losing interest on, in this case, £1K and if you close the account you collect the interest to date.

Their user guide states that no interest is payable in a month where a withdrawl is made or the account is closed - so wouldn't it be easier to just withdraw the entire amount on the 1st?

I hope I'm not missing something glaringly obvious here

littlemissmoney

I've still got no interest for last month :mad: How have they managed to give it to some and not others!?

LittleVoice

Crabman wrote: »

Their user guide states that no interest is payable in a month where a withdrawl is made or the account is closed - so wouldn't it be easier to just withdraw the entire amount on the 1st?

I hope I'm not missing something glaringly obvious here

Absolutely right. I thought that's what I was saying; sorry if it wasn't clear.

Withdraw the whole amount on the 1st - put any balance you don't need in an account paying decent interest. Then close the account formally - collecting the interest accrued to date. Though no interest is paid in the month, there will be accrued interest earned prior to the withdrawal month.

If the interest rate still appeals, open another account with them - transferring the balance back to A&L but to the new account - as long as you really don't think you are going to need to gain access in the near term.

littlemissmoney

I dispair. I sent them a secure message and they replied saying I would not be getting any interest for last month because I did not make the minimum investment :wall: I had over £4,500 in the account. I wish they would read their own terms and conditions.