Will A&L Reduce its 6.5% Savings Rate?

Leeds_Fella

Chaps & Ladies

I sold up 6 months ago (phew !) and have £275K of equity in a fixed high interest account until Oct 08 - 6.35%.

In the interest of reducing risk, I am looking for other accounts to put an amount in

The 6.5% A&L account seems OK, but whats the chance that this rate will be significantly reduced if rates falls once or twice?

Any thoughts?

bristolleedsfan

Leeds_Fella wrote: »

Chaps & Ladies

I sold up 6 months ago (phew !) and have £275K of equity in a fixed high interest account until Oct 08 - 6.35%.

In the interest of reducing risk, I am looking for other accounts to put an amount in

The 6.5% A&L account seems OK, but whats the chance that this rate will be significantly reduced if rates falls once or twice?

Any thoughts?

If u are talking about the current E-Saver, ive just had an email through saying whilst they have reduced the variable rate by 0.25% they have increased the bonus by 0.25% so the rate including bonus remains the same. ( that covers the last Base Rate decrease.)

You can get 20.00 cashback if u apply for A+L E-Saver via quidco.

http://www.quidco.com/alliance-leicester-esaver-account/

tawse57

I think come october the BOE base rate will be much lower than today so products on the market then will be much different.

Of course, it could go the other rate and we might have soaring inflation and higher rates.

It is such an unknown at the moment.

YorkshireBoy

bristolleedsfan wrote: »

( that covers the last Base Rate decrease.)

All we have to worry about now then, is the one coming a week on Thursday.

Swipe

I wouldn't put any more than £35k of your £275K in A&L. The fact that they increased their bonus to maintain the rate speaks volumes.