money saving expert wrong!go on argue

mattys

Either i miss the point or the suggestion that alliance and leister 6.5%aer(esaver)is not good for that unless you leave your money in until feb 2009.the only issue i can see here is the same as some other internet accounts.if you withdraw,you loose a months interest.But if you close account on 1st of month(including before feb 2009)you get the full 6.5% which includes and pays the 0.35% bonus.So why does the site suggest this is not true???

mountainchrisriver

Yep... this gets the most daft title for a thread today... and you are hoping to achieve??? :rolleyes:

barak

mattys wrote: »

Either i miss the point ....

mattys - I think you have misunderstood the conditions, which include "No interest is earned on the account balance in any month in which a withdrawal is made" - so you don't get any interest on the total balance for a whole month.

aleph_0

I assume you are talking about this from the main site:

Alliance and Leicester's eSaver pays 6.5%, yet 0.35% of that's a bonus until Jan 2009; worse still it pays no interest in any month you make a withdrawal so only use it if you'll leave the cash there till 1st Feb 2009, then withdraw it all (do that on the first of the month to minimise the impact).

I assume this is because the rate is only 0.09% above ICICI, which has the bonus of a base-rate linked guarantee until 2011. Thus the site has suggested, quite reasonably, that it would be best to go with ICICI, as otherwise it won't be worth the effort for most people. Given the amount of threads with people getting confused about these sorts of conditions and losing lots of interest as a result, surely this is good advice - only to place money if you intend to leave cash there till Feb 2009.

Aegis

Martin's only human, so sooner or later he's going to be wrong. However, on this occasion he's not. If you're looking for a savings account for a lump sum that you never want to withdraw from except to close the account, then A+L are fine (as suggested in the article), while if you want instant access with no penalties for withdrawals you can go for something that pays marginally less but has that convenience factor instead.

Mikeyorks

mattys wrote: »

..... i miss the point ....

.......... absolutely no argument ....

bristolleedsfan

Aegis wrote: »

while if you want instant access with no penalties for withdrawals you can go for something that pays marginally less but has that convenience factor instead.

also fair to say if people boycotted accounts where no interest is paid in month of withdrawal such accounts would cease to be marketed.

bilbo_2

I had a bit of money sat in a nationwide esavings account so i took it out added it to the A&L esaver and on april 1st next year 6k comes out and go's into an isa account and the rest into the plus account and no interest lost

this way i don't lose out i gain on the nationwide esavings rate at least 0.5% interest !! it all counts

bristolleedsfan

bilbo wrote: »

no interest lost

apart from the loss of interest as a result of moving funds about twice within space of around 4 months.

ManAtHome

And if you're going to leave the cash in the account until Feb 2009, why not bung it with Bradford and Bingley - fixed 6.8%

MarkyMarkD

Whilst Martin's almost right, he's not quite. The A&L account is fine for anyone who intends to close the account on the 1st of ANY month up to and including 1 Feb 2009, not JUST people who intend to go the full duration.