A & L Slash Child Account rates

deemy2004

I got the letter

This just confirms what we have all known for going on a year or more.. That A&L is the WORST BANK !

No matter what the rate is or what they offer AVOID ! Cos they will sneak in crap like this !

katskorner

Yeah I just got the letter this morning and I am pretty annoyed - now I have to find another account and go through all the hassle of changing it. Plus getting family and friends to change their SO's to it.

This is really frustrating. Especially seeing as I just opend an online saver with them - will have to keep a very close eye on that now.

So is the concensus that the Nationwide account is the best bet at present then?

laurac

At least A&L did you the courtesy of writing to advice you of the change. I went to the Dunfermline yesterday to pay money into both my childrens accounts only to be told that, that childrens bond had been closed and I could set up a new bond for each of my children at the lower rate of 4.95. Oh and I would need £50 for each of them to open the new accounts. Money I could not take from their exsiting accounts as 30 notice is required. I could not believe I had been given no notice of this change and was expected to take in all the information there and then and produce £100 in order to continue to save with them!

Needless to say I am searching arond for a better deal.

cheese_2

why have people said go to the Nationwide when the link to the best children's savings accounts above shows Halifax as having a better interest rate? Have I missed something obvious?

cheese_2

I'm trying to answer my own question, as it looks like I'm going to have to move the money from A & L.
I've looked at the Halifax site and they offer 5.05% on their Save4it account. This is better than the Nationwide, so unless somebody can tell me something different, I'd say the Halifax is the way forward.

beaker141

A&L have in their slim defence given a couple of months notice, the rate doesnt change until July so the canny moneysavers will not rush in transfering the cash just yet.

I reckon open new accounts with the next best , Halifax from reading above comments with the minimum of a £1, then a week before the rate goes transfer the money maximising the higher rate.

I am doublely frustrated as I have got 2 kids accounts with them so twice the form filling.

My eldest is only 2.5 and we will shortly be moving to his third bank - I wonder how many he will have had when he is 18 ! He will probably think I have been up to no good trying to hide a money trail from him !!

FIFE1

I have had this letter too. If you can save between than £10 and £1000 a month into it, I think the Derbyshire BS will allow you to open a regular saver account in Trust for the child. The interest rate is 5.85% with bonuses so very good although there are limits on withdrawals. I have a local branch so will check at the weekend and post a message here.

katskorner

FIFE1 wrote:

I have had this letter too. If you can save between than £10 and £1000 a month into it, I think the Derbyshire BS will allow you to open a regular saver account in Trust for the child. The interest rate is 5.85% with bonuses so very good although there are limits on withdrawals. I have a local branch so will check at the weekend and post a message here.

Please do post what you find for this account as I would be interested for sure. This is a better rate then the A&L one anyway. Obviously depends on T&C's. Let us know and thanks.

It is a good point about canny moneysavers not rushing - I will relax moderately until near the July date and maximise on interest.

cloud_dog

cheese wrote:

I'm trying to answer my own question, as it looks like I'm going to have to move the money from A & L.
I've looked at the Halifax site and they offer 5.05% on their Save4it account. This is better than the Nationwide, so unless somebody can tell me something different, I'd say the Halifax is the way forward.

I think the reason people are recommending Nationwide is that they are consistently 'there or thereabouts', never quite the top payer but they provide good rates. There is the perception that Nationwide are more customer focussed (and I'm sure that's something Nationwide would like to promote), and with them being a mutual have their members interests at heart.

I've got my daughters accoount with them probably for all the above reasons. Have to say I've never entertained the idea of a) giving my money to A&L and b) borrowing money from them as they are one of those companies who have really good headline rates but the overal product package (whether that is over time or in additional fees - recently increased their fee for moving your mortgage from them to £295 - most expensive out there) just does not make them worthwhile.

cloud_dog

katskorner

I must admit that I have many products with the Nationwide including Mortgages and the CTF as they are consistently good. I have never had cause for complaint before.

Looks like the child savings account is going there too.... all they need is to get my current account business and they have all my financial stuff in the bag!