Alliance and Leicester

londonuk2008

I wonder if anyone can answer a few questions re the Premier Direct Account -
1 - is the 8.5% paid monthly (so for example if I had £2.5k in my account consistantly for a month) what would the monthly interest payment be?

2- If I had £2.6k in my account would I get 8.5% up to £2.5k and then 0.10% for £100?

I have just opened the account , and whilst these maybe obvious questions , I need to know for sure!!
Thanks!

YorkshireBoy

londonuk2008 wrote: »

1 - is the 8.5% paid monthly

We work out interest each day and add it to or take it from your account each month.

http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=prem-legals

(so for example if I had £2.5k in my account consistantly for a month) what would the monthly interest payment be?

£2,500 x 8.19% / 365 x n x 0.8

where n = number of days in the statement month, and 0.8 is the savings tax multiplier.

So, assuming a 31 day month, interest would be £13.91 (net of savings tax)

2- If I had £2.6k in my account would I get 8.5% up to £2.5k and then 0.10% for £100?

No, you'd get 8.19% gross p.a. (6.55% after tax) on the first £2,500 and 0.0something% on the rest.

LittleVoice

YorkshireBoy wrote: »

No, you'd get 8.19% gross p.a. (6.55% after tax) on the first £2,500 and 0.0something% on the rest.

"We pay 8.19% gross (fixed) before deductions a year on credit balances of £1 up to £2,500 (8.50% AER fixed) until 30.04.09. After that rates will go back to the Bank of England base rate less 1%. We work out interest each day and add it to or take it from your account each month. All balances over £2,500 earn 0.10% gross/AER (variable). "

Quote from http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=prem-legals&currpage=premierdirect

YorkshireBoy

LittleVoice wrote: »

0.10% gross/AER (variable).

Sorry LittleVoice, I taxed it for the OP.

Perhaps I should have said 0.08% rather than 0.0something% (which I did for effect )