Abbey 10% ISA!!!!!

snarffie

Aegis wrote: »

I think if you want the highest paying cash ISA, you have to go to Alliance and Leicester. Their ISA allows transfers in with similar conditions to Abbey's investment ratio, but new money can go straight into the cash ISA with no requirements other than to have a Premier Current account, which is free if you put more than £500 in each month.

If you want the highest paying cash isa, shouldn't you be looking at Barclays' tax haven (6.5% variable), or Lloyds' Fixed Rate ISA (6.5% for amounts over £9k).

Aegis

snarffie wrote: »

If you want the highest paying cash isa, shouldn't you be looking at Barclays' tax haven (6.5% variable), or Lloyds' Fixed Rate ISA (6.5% for amounts over £9k).

The A&L one is 10% variable, but only available if you have a Premier Current account. The ones you've listed are the best catch-free variable (new money) and fixed ISAs (with enough cash).

Paul_Herring

abbeylover wrote: »

however this ISA is still the highest available.

Cojones.

Taken in conjunction with the mandatory equity product, which will at worst not increase[1] you'd be lucky to be earning 5% total across both products. The equity product is effectively subsidising the cash product to the detriment of the customer.

And there's the 3 1/2 year minimum tie-in for the equity product.

Hardly worth rushing into.

[1] They 'guarantee' 6% over 3 1/2 years, or 18% over 6 years. I must point out here that these percentages are NOT APRs. These are the rates over the period as a whole. The potential maximum is a pittance of what's possible when using a non GEB. Not exciting. And this isn't even taking inflation into account.

dunstonh

The commission on GEBs is typically around 3%. So buy one of these DIY and you save yourself 3%. Abbey's GEB that you have to buy along side it is particulary poor (compare it to the Premier GEB for example to see just how poor it is). Half the money is going to be in a sub-standard investment where far better alternatives exist (even on full commission basis). Buy the better investments and you get far more money in your pocket than a few percent added to the ISA rate for one year.

snarffie

Aegis wrote: »

The A&L one is 10% variable, but only available if you have a Premier Current account. The ones you've listed are the best catch-free variable (new money) and fixed ISAs (with enough cash).

I swapped from a Premier Current Account to a Premier Direct Current Account earlier this year.

So I miss out on the 10% ISA rate, but I get a fixed 8.5% rate on £2500 on the Premier Direct Current Account (6.8% net). I also have £3600 to go into a 6.5% variable ISA on April 6th.

Not sure if I was better off with the Premier Account now. (Just checked and I would have been about £60 better off by staying with Premier :doh:).

Oh well, it wasn't available at the time, so nothing I could do about it anyway!:rolleyes:

(Edit: Actually, it's for NEW customers only, so I did the right thing)

Bazn

abbeylover wrote: »

I'm not disputing that it's linked to other sevices that Abbey offer, however this ISA is still the highest available. Does anyone on here have any horror stories about Abbey? I think they are the best bank out there!!!!

hmm call me a cynic but i sense some vested interest here...

allie_747

I have been looking at this product the last couple of days. The ISA is linked to a Guaranteed Growth Plan as stated by others, your capital input is guaranteed plus 6% return is guaranteed, and then what you get back further to that is dependent on the shares value when cashed in

Any further comment on this? I think I've read the small print correctly.

dunstonh

Any further comment on this? I think I've read the small print correctly.

You are correct. You have to put an equal amount in to the investment product that has quite awful terms and is easily beaten by alternatives.

Whilst the 10% looks good, the investment product is rubbish and thefore reduces the benefit of the attractive half of the product. Buying a 6% ISA and a decent investment product would give you far better value than this abbey product.

triggerrabbit

I agree Abbey are the best bank out there!!!!! The staff are always friendly and i wish i had changed to them sooner.

Stavros_3

triggerrabbit wrote: »

I agree Abbey are the best bank out there!!!!! The staff are always friendly and i wish i had changed to them sooner.

You don't happen to be an Abbey employee by any chance are you?