Strange A&L interest, any ideas?

frivolous_fay

Hello,

I have an A&L Premier Direct account with an introductory rate of interest.

Normally interest is added on once a month, eg:

NET INTEREST 22AUG-21SEP

For some reason, I've just had another interest payment added:

NET INTEREST 22SEP-02OCT

Anyone have any bright ideas why this might be?
I wondered if it might be due to the promotional rate expiring, but AFAIR I opened the account in August last year... and 14 months doesn't ring any bells in terms of the promotional rate duration.

Anyone experienced any similar randomness?

hannahgibbs

I have a premier direct and have received my online saver interest in the last few days, no evidence of anything else though

frivolous_fay

Fancy that... yes, I see I've also had some interest added to my online saver account for the first time since April.

Perhaps 1st October is Special Interest Day for A&L?

YorkshireBoy

Applying in August 2006 meant your intro rate expired on 30/9/07...
http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=all-rates&RateTable=premier-direct&ct=curraccrates#l5

Online saver pays interest on 1st October each year...
http://www.alliance-leicester.co.uk/savings/index.asp?page=online-saver

I had a Premier Direct account from 2006 until earlier this year, and irregular interest payment dates were the norm as I recall.

frivolous_fay

Thanks YB, looks like the honeymoon's over! I had looked at that page but had a mental block for some reason about the dates.

Although I remember the starting rate being 6%+, not 4.89%... are they displaying the rates in an odd way?

What's the best current account now for interest?

YorkshireBoy

frivolous_fay wrote: »

...looks like the honeymoon's over!

It still pays a (fairly) respectable 4.75% AER.

Although I remember the starting rate being 6%+...

You just missed out on the 6.10% AER rate, which was payable from 1st/4th September applications onwards. As far as I remember, they went to 6.10% because someone else (Abbey?) came out with a 6% current account.

...not 4.89%... are they displaying the rates in an odd way?

4.89% is the gross p.a. rate. This is the rate you earn each month. If you left it in the account, it would compound to 5% AER.

What's the best current account now for interest?

Although it's not my main current account, I have a Halifax HICA paying 6.17% AER, but it requires monthly funding of min £1,000. I'm not really up on current accounts, but there should be an article somewhere on the main site.