A&L Premier Current acc + 10% ISA - any good?

kebv

Hi All,

I'm just starting to think about putting money aside in ISAs etc and I wanted to "bounce" the following idea off some more experienced folk:

- I've got about £1500 and a regular monthly £200 to put into an ISA for this this coming Tax year (08/09) and was looking at the A&L ISA Issue 2 at 10% providing I open a Premier Current Account with them and transfer £500 in (and then immediately out) every month. (Link: http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=prem-credit-interest&ct=curracchome)
- If i'm not transferring an existing ISA into the A&L one but "starting a new one", I assume it can be 100% cash.
- I only need the high rate for a year, until June 09 is grand for me. (I may need to withdraw some of the savings earlier.)
- I have a good credit rating.
- I have a lloyds TSB Curent account which I'll keep as my main one.
- I also have a Virgin Credit Card with 15 months 0% and I can pay off the balance in 14 months.
- I'm thinking of Stoozing the remaining £1800 on the Virgin card into the A&L ISA from the start and then pay it off with some of the £200 per month. (Virgin charge 3% Balance Transfer fee to current accounts)

Does this plan make good sense? Or is there anything I'm missing or I've not understood? It sounds too good to be true, although I've heard A&L are not too hot on customer service.

Any advice would be much appreciated.

Cheers

Update:
Just found this on the A&L Site:
"Premier ISA Issue 2 is available when you open and pay in your main income to a Premier Current Account."

Does this mean I cant have my salary paid into my Lloyds account and just transfer the £500 min into A&L? i.e. does the £500 min HAVE to be an employers paycheck and not just a standing order?

Thanks

chesky369

If you have £1,500 ready now, put it in an ISA for THIS year (you've still got a couple of days). Then you have your monthly £200 ready for 2008/09.
No point in waiting.