A&L ISA is it as good as it apears?

SuperPlay

ISA for 08/09:

Hi Folks

I currently have 6kish split beteen 2 ISAs and I am looking to open an new ISA account to consolidate these and pay in the 08/09's contribution.

I have seen the following which seems to allow me to do this at a competitive rate.

http://www.alliance-leicester.co.uk/savings/index.asp?page=direct-isa

However I have a concerns about the offer and the way it will affect my freedom to withdraw/move /shop around for a better deal next ISA year (2009/2010):

Interest: As everyone knows ISAs run from/to April and A&L Pay their interest annual in January. So do I loose 4 months Interest if I decide to move to another ISA provider in April 09?

Bonus: Similar to the above the 1.00% bonus payable to 31.05.09, does this mean that if I do not want to loose the bonuse I cannot transfer until 1st June?

Cheers

SuperPlay

After more thought does this deal mean:

1. If I want to transfer the A&L ISA in April next year to another providor for the 2009/2010 period:

Interest is paid in January, so in April 2009 will my account contain the Inital sum + Interest until Jan 2009?

If this is the case what happens tot he Interest earned beteen Jan 2009 to April 2009 will this appear in the accont in January 2010 or wil this be lost?

2. I think I understand this now, as an offter that will run until 31.05.09


Please help, there are a lot of people conisdering this ISA and this information would be useful to all who are thinking about one.

KTF

A&L pay the interest in January but if you close it down in April they add on the interest for the additional 3 months so you wont lost any interest so you will get:

The original amount + interest added in January + interest from January to April (or whenever you close it down).

You can transfer out at any time with no penalty. The bonus applies to the rate only and you dont have to keep the money in there for an certain amount of time to get it. When the bonus expires the rate will drop so you would be looking to move out before that time anyway.

boobbby

SuperPlay wrote: »

After more thought does this deal mean:

1. If I want to transfer the A&L ISA in April next year to another providor for the 2009/2010 period:

Interest is paid in January, so in April 2009 will my account contain the Inital sum + Interest until Jan 2009?

If this is the case what happens tot he Interest earned beteen Jan 2009 to April 2009 will this appear in the accont in January 2010 or wil this be lost?

2. I think I understand this now, as an offter that will run until 31.05.09


Please help, there are a lot of people conisdering this ISA and this information would be useful to all who are thinking about one.

You should find all ISA accounts have there interest calculated daily but only entered in the account annually or monthly. If you make a transfer then the up to the day interest will be added.

SuperPlay

Thanks folks

The information has been really helpful.