A&L Online Saver/ISA closing & cutting rates

isasmurf

I heard martin say on talk sport that he suspected it was likely A&L were going to drop the rate of the direct saver and cash ISA accounts for existing customers and close it for new customers

Hobo_2

Also mentioned here
http://forums.moneysavingexpert.com/showthread.html?t=62289

Milarky

The current account still has an interest guarantee until June 2006, of course, [5%] and then would track the Bank of England rate minus 1% if memory serves correctly. So A&L could could cut this account option to new customers and at the same time cut their online saver rate to 5% too I suppose. The 'tracking' condition could also be changed or removed altogether with just 30 days notice - long before it was reached in other words.

isasmurf

The Online Saver and Online ISA have both dropped out of Moneyfacts "Best buy" tables so something is definitely happening with these accounts... what though is the question?

kinesin_2

In todays Mail on Sunday.. it says the Online saver rate is dropping to 5% tomorrow morning and will remain +.25% above BoE base rate till year end. - It's too popular it seems. The account is also be closed to new customers

The Direct ISA is been closed to new cusomters 5.4%,so it suggests appling today! This is to be guaranted to be 0.65% above BoE base rate.

New verisons of the online saver and Direct ISA to be out next month.

Looks like I'm about move my stoozed cash... :idea:

ukjs1976

kinesin wrote:

In todays Mail on Sunday.. it says the Online saver rate is dropping to 5% tomorrow morning and will remain +.25% above BoE base rate till year end. - It's too popular it seems. The account is also be closed to new customers

The Direct ISA is been closed to new cusomters 5.4%,so it suggests appling today! This is to be guaranted to be 0.65% above BoE base rate.

New verisons of the online saver and Direct ISA to be out next month.

Looks like I'm about move my stoozed cash... :idea:

Hello... thanks for the very useful info on this discussion... I have an A&L online saver and the new 5% rate is not particularly out of the ordinary. Any ideas for an alternative?

Best regards,

buses7675

Hi All,

Lets hope if they have a 'new' Online Saver then it will have a higher rate, or an introductory rate, which is also available to existing customers!

At least the Direct ISA remains at 5.4%, even if it is closed to new customers, and so long as it is guaranteed to be 0.65% above the base rate (but for how long!), all should be well!

Cheers

Steve

muddyfox470

Wow, they cannot change the rate from then, they have to give the customers a prior warning to any rate changes.

I am still quite dubious about all this, whether A&L are infact reducing rates, or whether people are just trying to boycott A&L due to the childs account rate cut.

Only time will tell

Ian

Kazza242

The 5.65% interest rate on my Cahoot savings account will be coming to an end at the end of this month. If Cahoot dropped the rate by a lot I was going to put the money in my A&L online saver. However, as the rate is dropping to 5%, I might as well put the money in my ING Direct account that also pays 5%. With ING Direct, at least I can get to see it grow every month, as they pay monthly interest. Their rate has also been consistent for some time now. ING also let you deposit more in your account (up to £1million, I wish ) than A&L (£25K).

I doubt I'll use my A&L account anymore, because once an account is no longer offered to new customers is can become really uncompetitive.

Alternatives:

Bradford & Bingley eSavings pays 5.25% AER (5.13% monthly interest), minumum balance £1,000.

Yorkshire Building Society e-saver pays 5.20% interest and comes with a cashcard. It is run via internet. Min balance £250.

Cahoot savings account pays 5.10%, is run over the Internet and monthly interest is paid.

ING Direct pays 5% AER, minimum balance £1, monthly interest. Run over the phone, Internet or post.

BenL

Or wait for the research to finish on the ici India bank.

5.4%

Kazza242

BenL wrote:

Or wait for the research to finish on the ici India bank.

5.4%

True, this account does offer a good rate. I have heard of this bank, they are huge, but I'll wait to see what Martin's findings are.