Alliance & Leicester esaver problem, pls help!

addicted2shoes

Hi could someone please advise me what to do here, I'm a bit stuck!!........


I recently opened an Alliance & Leicester esaver account, 6.50% until Jan '09.


The max allowed in this account is £75k I stupidly added £83,000, now I wont receive any interest on the extra amount of £8k. I used Martins savings calculator which says I've lost out on £33 per month interest (£396)! Martin advised not to take out any money from this account until 1 Feb 09 as you do not get any interest in any month in which a withdrawal is made.


Now if I take out the £8000 I will lose out on a months interest from the £75k (£317.00). Their website states 'free withdrawals in July' so should I wait and do it then – losing out on £165 (5 months interest at £33 per mth)??


Sorry to pester you all! we are a young family & have never had any money spare, now we've been left quite a bit and am struggling to put it all in the correct place!!

denzil53

I suppose you could transfer ALL your savings to another account - where you would receive interest.

debbie42

Leaving aside any potential free offer, if you want to withdraw any amount from the A&L direct saver, it's best to take it all out at the beginning of the month, and put it somewhere where it will earn a good rate of interest. Then next month, you can put back the amount you want to keep in. Otherwise, as you've so rightly pointed out, you lose out on the interest.

I'd investigate the free withdrawals option further, but lgo through it with a fine toothcomb before relying on it!

MarkyMarkD

It's not worth waiting until July.

Take all the money out on 1 March, and put it in another account paying a good rate. Then return the £75k on 1 April.

That's unless the "other account paying a good rate" pays more than the eSaver, in which case don't bother transferring it back at all.