A&l 10% Isa

junzhouxy

HI, I've got a 6000GBP ISA in previous years in other bank. I think perhaps I can do follows to increase my interests:

1. transfer my previous ISA to a good provider before 07/04/2008, such as Abbey, and it give me 6.25%;
2. open a A&L current account and saving another 3600 GBP after 07/04/2008 in their 10% ISA account; what I need to do is to fund 500GBP to A&L current account.

If I can do this, at the end of next financial year, I should get
6000*6.25%+3600*10%=375+360=735

If I transmit all my money to TSB for one year fixed ISA account, I will get
9600*6.5%=624

Obviously I will earn more than 100GBP and I can access my money instant compared to the TSB solution.

Am I right? Is there any problem in my solution?

melancholly

i spoke to someone in A&L about the 10% ISA and the general impression I got was that it was for long term savings and as I was expecting to need mine in the next 3 years that it wouldn't be appropriate. might be worth speaking to them about it as it may tie your money up and if you want instant access, it may not suit you.

junzhouxy

melancholly wrote: »

i spoke to someone in A&L about the 10% ISA and the general impression I got was that it was for long term savings and as I was expecting to need mine in the next 3 years that it wouldn't be appropriate. might be worth speaking to them about it as it may tie your money up and if you want instant access, it may not suit you.

Thanks for your reply. However, I have rechecked the website of A&L, and I find that its 10% ISA is an instant access and I should keep my A&L current account open untill 01/06/2009. The follows is part of their introduction. So why do you think it should be a long time saving?

Earn 10.00% gross p.a./AER (variable) when you open and arrange to pay in your main income each month to a Premier Current Account, Premier 50 or Premier 21 current account
Tax-free savings with no notice for withdrawals :T :T

24/7 access to your Premier ISA Issue 2 via Telephone and Internet Banking
Linked to your new Premier account for easy access and quick transfers

BioBlinx

Yeah I looked at this 10% ISA too. I think you can lock up funds for a certain time period, thats if you have over £5000 I think it is. If you just want the 10% ISA on £3600 for the next tax year then it is just instant access and the only requirement as previously mentioned is to make sure £500 goes into the current account every month. So you could just arrange for your salary to be paid into that account every month and enjoy 10% on £3600 for a year.
I was in A&L today transfering my old ISA to their 6.25% ISA and I couldnt believe the 10% deal.

Has anyone else looked at this and noticed any caveats?

melancholly

interesting - i had a meeting with the 'ISA expert' at a branch and they said if i wanted to use the money in the next 3 years that i couldn't have that account..... maybe that was just rubbish then......... i had a leaflet with very little info on it sent as i'm an existing customer, so went in to get the extra info. will go look at their website now - i'll be very unhappy if i was told the wrong thing!

tanith

Melancholly the 10% ISA deal is really to draw in 'new' custom as you have to open a New Current Acc at the same time... so if you are already an A & L customer maybe the ISA expert thought you might not qualify as you are already a customer...

BioBlinx

It looks like if you are oppening a new premier account and you invest £3600 into the ISA linked to it, you'll get 10% and its instant access etc, the usual ISA stuff.

If you want to trasnfer in other ISAs, I think it has to be at least £5000 and you have to put 50% of it into stocks and shares ISA for 3 years minimum.

Here are 3 pages on A&L's website that I found about it:

http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=prem-credit-interest&ct=curracchome

http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-isa&ct=premierhome06

http://www.alliance-leicester.co.uk/premierisauserguide/index.asp?page=page5&ct=currpremISA2

Hope this helps anyone who is confused as well to the T&Cs of this account.

melancholly

tanith wrote: »

Melancholly the 10% ISA deal is really to draw in 'new' custom as you have to open a New Current Acc at the same time... so if you are already an A & L customer maybe the ISA expert thought you might not qualify as you are already a customer...

it is for existing customers too -they sent details out to me about it in the post! it looks like the issue is not being able to touch lots of money for a minimum amount of time

BioBlinx

But it looks like there is an option to just have the isntant access bit? If you dont transfer in other funds (which is where they'd want you to tie up the funds) then you can just have the ISA, instant access, up to £3600 in it. So long as the current account is getting £500 per month going in. Am I understanding this correctly?

melancholly

i understood that you have to transfer in a minimum amount to the stocks and shares bit to be able to get the 10% offer. if all you want is a new cash ISA, then it has to be their direct ISA which is now on issue 4. but that is coming from the A&L 'expert' so may not be right!

junzhouxy

BioBlinx wrote: »

But it looks like there is an option to just have the isntant access bit? If you dont transfer in other funds (which is where they'd want you to tie up the funds) then you can just have the ISA, instant access, up to £3600 in it. So long as the current account is getting £500 per month going in. Am I understanding this correctly?

This is what I am thinking. If we can do this and you did not hold a A&L current account in recent three month, then the best method for this year ISA should be:
1. transfer your previous cash ISA to better provider;
2. open a current account of A&L, and enjoy the 10% interests of your 2008/2009 cash ISA allowance.

This afternoon, I just transferred my previous cash ISA to Abbey. I will open a new A&L current account after 07/04/2009 and try the 10% account.