Advice req. ISA 5.85/ savings 8.5%

Sandy_Beech

I have done alot of searching around... Just wanted a little assistance please...or just to put my mind at rest...

I have an isa at the mo... at 6.3%.. runs out 5 april 08.... with 3,000 in...Then i have another 3,000 to put either in on the 6th april 08.. rate 5.85,
or using alliance and leicester prem current account with a credit interest at 8.5% taking tax off (if i am correct) equates to 6.8%... Thus would be better in the long run... Well for 12 months.....
(or i can only put 2,500 MAX in all&leiceser current account...) at 8.5&


I hope this makes sense!!!!!!!!!! Would this be the best option for me?????

Many thanks in advance for even taking the time to look into this post, and a million thanks for a small reply..or assistance i even BETTER interest?????

Sandy beech......Owen money---Saving money now lol

bristolleedsfan

Sandy_Beech wrote: »

I

What would this be the best option for me?????

Post in here. http://forums.moneysavingexpert.com/forumdisplay.html?f=18

Aegis

Sandy_Beech wrote: »

I have done alot of searching around... Just wanted a little assistance please...or just to put my mind at rest...

I have an isa at the mo... at 6.3%.. runs out 5 april 08.... with 3,000 in...Then i have another 3,000 to put either in on the 6th april 08.. rate 5.85,
or using alliance and leicester prem current account with a credit interest at 8.5% taking tax off (if i am correct) equates to 6.8%... Thus would be better in the long run... Well for 12 months.....
(or i can only put 2,500 MAX in all&leiceser current account...) at 8.5&

You need to fund the account with £500 a month or more to avoid charges and to keep the interest rate that high. This product is not designed to be a savings account, so you'll have to work quite hard to make it perform like one.

You'd probably be better off using it as a current account and getting good interest as a by-product

MiserlyMartin

You aren't the legandary Sandy Beech, Radio DJ and jingle production, music 4 guy are you? Sorry had to ask!

Steve_xx

Sandy_Beech wrote: »

I have done alot of searching around... Just wanted a little assistance please...or just to put my mind at rest...

I have an isa at the mo... at 6.3%.. runs out 5 april 08.... with 3,000 in...Then i have another 3,000 to put either in on the 6th april 08.. rate 5.85,
or using alliance and leicester prem current account with a credit interest at 8.5% taking tax off (if i am correct) equates to 6.8%... Thus would be better in the long run... Well for 12 months.....
(or i can only put 2,500 MAX in all&leiceser current account...) at 8.5&


I hope this makes sense!!!!!!!!!! Would this be the best option for me?????

Many thanks in advance for even taking the time to look into this post, and a million thanks for a small reply..or assistance i even BETTER interest?????

Sandy beech......Owen money---Saving money now lol

On the 6th of April you will be able to add £3,600 to your ISA, not £3000.

Be careful with the 8.5% A&L Premier Direct Account. It pays that amount on balances upto £2,500, so if you put the full £2,500 in it you will not be leaving any room for interest to compound so as not to bring the balance above £2500, after which a lesser rate of interest is paid. The wording of the term suggests that if you had a balance of £2501 that interest of only 0.10% would be payable on the lot!


8.50% AER (fixed until 30.04.09) on balances up to £2,500, 0.10% AER (variable) on balances
over £2,500

Sandy_Beech

Steve_xx wrote: »

On the 6th of April you will be able to add £3,600 to your ISA, not £3000.

Be careful with the 8.5% A&L Premier Direct Account. It pays that amount on balances upto £2,500, so if you put the full £2,500 in it you will not be leaving any room for interest to compound so as not to bring the balance above £2500, after which a lesser rate of interest is paid. The wording of the term suggests that if you had a balance of £2501 that interest of only 0.10% would be payable on the lot!


8.50% AER (fixed until 30.04.09) on balances up to £2,500, 0.10% AER (variable) on balances
over £2,500

Thanks pal. That is some fine assistance!!!!!! will check out other options.....

Sandy_Beech

MiserlyMartin wrote: »

You aren't the legandary Sandy Beech, Radio DJ and jingle production, music 4 guy are you? Sorry had to ask!

I can for sure say i am not....... I just listen to the chris moyles show too often.. but the show is amazing...

Lavendyr

Steve_xx wrote: »

The wording of the term suggests that if you had a balance of £2501 that interest of only 0.10% would be payable on the lot!

8.50% AER (fixed until 30.04.09) on balances up to £2,500, 0.10% AER (variable) on balances
over £2,500

Nope, just to clarify, it means that you will earn 8.5% on the first £2,500 but anything above that will only receive 0.10%.

Sandy_Beech

Lavendyr wrote: »

Nope, just to clarify, it means that you will earn 8.5% on the first £2,500 but anything above that will only receive 0.10%.

Just to re re re confirm... if i do put 2,500 in the account and it lets say 1 month later its 2,550 i WILL STILL get 8.5% (less tax) on 2,500 still,
but the 0.1% on the 50????????

So on ??

P.s thanks for a reply! me

Lavendyr

Correct

Meltdown_2

I agree with what Lavendyr says (from experience of such accounts), but can fully sympathise with Steve_xx's reading of the way in which these terms and conditions are usually worded. One sometimes wonders whether their authors need courses in remedial English!