A&L no interest in month of withdrawal sneaky trick

michaels

A&L have some of these high interest accounts (called direct saver 6.3% and esaver 6.5%) which pay no interest at all (withdrawn amount or balance) in any month that a withdrawal is made.

The obvious approach therefore is if a withdrawal is needed in any month, to withdraw the entire balance on the first of the month and lodge it in another account for the remainder of the month. Except that I tried this today and there is a limit of 25k funds that can be moved in a day hence if you have a large balance it will actually take a number of days to move the funds, even if it is just to another A&L account, worse to another bank.

RayWolfe

All accounts have terms and conditions.
High interest accounts sometimes have more terms and conditions.
Always read and understand terms and conditions BEFORE you sign up.

Lavendyr

It's not just A&L either, several banks are doing this now.

It's not a "sneaky trick", otherwise they wouldn't make it such a clear part of the T&Cs.

ManAtHome

Is there a limit on cash moved to another A&L account or just to accounts with other banks?

HSBC have similar accounts, but you can move everything into your current account, then most of it out to another HSBC account the same day (I said "most" as you wouldn't be making a transfer if you didn't want to liberate some cash...).

KTF

If you phone them up you can transfer any amount you want. 25K is the limit for online banking only.

YorkshireBoy

ManAtHome wrote: »

Is there a limit on cash moved to another A&L account or just to accounts with other banks?

Also, many of these internet banking limits can be overridden with a telephone banking instruction (if you've pre-registered), presumably because they have more security checks in place.

I can't remember if A&L's limit can be overriden, but Barclays £1K limit certainly could be.

michaels

ManAtHome wrote: »

Is there a limit on cash moved to another A&L account or just to accounts with other banks?

HSBC have similar accounts, but you can move everything into your current account, then most of it out to another HSBC account the same day (I said "most" as you wouldn't be making a transfer if you didn't want to liberate some cash...).

25k between A&L accounts, don't know how much to external accounts.

THanks for info from other suggesting using phone banking. It is good that they have just launched the esaver account, using that and the direct saver I can have one withdrawal a month if needed and either 6.3 or 6.5%. I know icisave rate is as good but A&L has the advantage of a linked current account.