A&L Premier Direct Overdraft Limit?

PBA

masonic wrote: »

The Premier Direct account doesn't come with the 12% regular saver - that's the Premier account.

My mistake! But actually, if OP is using the A&L account for the 0% OD rather than the 8.5% in credit interest then he'd be better off with the Premier account rather than Premier Direct, as then he could take advantage of the 12% regular saver.

Gopes

Yes - except for the fact that, unless I have misunderstood, the 12% regular saver is only valid if you leave the full funds there for a year - i.e. interest is only payable at the end.

I am hoping to use my savings as a deposit towards a property within a year (although in the current market, I am not so sure...) - so I think that 8.5% guaranteed is better than 12%.

Also, as you are limited to paying in a maximum of £250 a month - so by my calculations, if you paid in £250 per month at 12% compounded monthly, you would have £3,202 in the account, so the maximum actual interest you would achieve would be an effective 6.7% (as I have £3k sitting in a savings account right now.

If I had £2,500 in the normal account at 8.5% - not counting on the fact that you have to faff around once a month paying in £500 and withdrawing £500 to maintain the account - you would have £2721 - again using monthly compounding - so a return of £221 on the £2,500 - so all in all - a better bet for someone who already has the money - and no tie-in - I can withdraw cash and interest when i want.
G