A&L Transfer problems PLEASE HELP

donerkebab

Due to the exit charge Martin mentions when transferring externally from an A&L ISA - I transfered internally my Tessa only ISA -> Direct ISA in branch - took over 50 mins not impressed :mad: My main issue is afterwards they tell me the accrued interest will not be paid /transferred across until 1st January next year!!! Is this the normal - surely if I transferred to an external ISA they would pay interest up to date of transfer.

Also not too impressed when calling their direct ISA customer services - when dialing the number from saynoto0870 as opposed to the 0870 ripoff they charge am told if I phone again using this number it will be recorded on my account. Hmm Natwest / HSBC etc have no problems with this so why does it matter to Alliance & Leicester - could it be the revenue generated when kept on hold for over 10 mins!!!

jimclark1967

donerkebab wrote:

Due to the exit charge Martin mentions when transferring externally from an A&L ISA - I transfered internally my Tessa only ISA -> Direct ISA in branch - took over 50 mins not impressed :mad: My main issue is afterwards they tell me the accrued interest will not be paid /transferred across until 1st January next year!!! Is this the normal - surely if I transferred to an external ISA they would pay interest up to date of transfer.

Sounds an odd way of doing things but they're probably within their rights to do so if January is when the interest would have been paid anyway. Someone else might know different?

donerkebab wrote:

Also not too impressed when calling their direct ISA customer services - when dialing the number from saynoto0870 as opposed to the 0870 ripoff they charge am told if I phone again using this number it will be recorded on my account. Hmm Natwest / HSBC etc have no problems with this so why does it matter to Alliance & Leicester - could it be the revenue generated when kept on hold for over 10 mins!!!

Yep - this is pettiness at it's best.

I mean really, customers having the cheek to try phoning their bank - whatever next!

donerkebab

jimclark1967 wrote:

Sounds an odd way of doing things but they're probably within their rights to do so if January is when the interest would have been paid anyway. Someone else might know different?



Yep - this is pettiness at it's best.

I mean really, customers having the cheek to try phoning their bank - whatever next!

Interest was normally paid in October when the Tessa only ISA was originally opened - my issue I am moving internally why withhold the interest.

I really regret not tranfering the TESSA externally and pay the £25 exit charge just cos A&L's attitude sucks.

MarkyMarkD

Because you are transferring from an account with one interest payment date, to another with a later interest payment date, the accrued interest continues accruing all the way through. Accrued interest is only converted to paid interest on either the payment date (which in this case doesn't arrive because you've switched account types) or account closure.

The financial impact of this is REALLY small (3 months' interest on the interest payment which is therefore about 3/12 x 5% x 5% x balance - say £6 odd per £10,000 of balance). The interest is not being withheld - it's remaining as accrued interest.