Alliance and Leicester Premier 50 Account (over 50s) 8.5% AER - catches?

buglawton

Anyone looked into this? Advertised in the Times, aimed at over 50s, seems up to £2500 credit balance gets 8.5% interest till end Apr 09 ?!?

Prudent

In the t&c (just been reading through as thinking of premier account), there seems to be a £10 a month charge payable on premier 50. Click on the pdf file for fees on first click through page.

roddydogs

Yup the snag is £10pm charge thier again worldwide holiday insurance cover (limited) my make it worthwhile

buglawton

Been to A&L branch today when that £10/month charge was revealed - not visible in the newspaper ad for some strange reason!

However a hidden benefit also came light: When you open the acct you open a linked Plus Saver acct with it. If you transfer any balance on the curr acct in excess of £2500 to this saver acct, you also get the 8.5% interest on that excess. So an opportunity to earn 8.5% on any amount is seems, so if you are already tax-exempt this is a bit of a stonker, till Apr 09 at least. Then it reverts to a normal rate.

This acct is not avail if 1 of the parties of a joint acct is under 50 though.

You can convert to this product from another A&L curr acct wile retaining your existing acct number/s.

LittleVoice

buglawton wrote: »

However a hidden benefit also came light: When you open the acct you open a linked Plus Saver acct with it. If you transfer any balance on the curr acct in excess of £2500 to this saver acct, you also get the 8.5% interest on that excess. So an opportunity to earn 8.5% on any amount is seems, so if you are already tax-exempt this is a bit of a stonker, till Apr 09 at least. Then it reverts to a normal rate.
.

I haven't visited the website to see if the details are there but would urge you to check that and get it in writing that you get 8.5% on the Plus Saver account (and that you can get instant access to the Plus Saver funds).

It certainly didn't work like that in the past - though the savings account paid more than the "excess" rate on the current account, it was not as high as suggested in your post.

Caution is needed, I think.

YorkshireBoy

LittleVoice wrote: »

I haven't visited the website to see if the details are there...

And there's more:

• An exclusive linked PlusSaver account paying 5.50% gross p.a./AER (variable) on balances up to £50,000

http://www.alliance-leicester.co.uk/currentaccounts/index.asp?page=premier50&ct=curracchome

If it sounds too good to be true...

roddydogs

The 8.5% is 25% more than the normal a/c after tax less than £1 pw extra.first£2500 only

buglawton

The assistant at A&L branch Reading confirmed verbally that amounts in excess of £2,500 can be transferred to the linked plus saver acct and get the 8.5% also - till Apr 09. A relative is taking this up, so I may have to double check now.

roddydogs

If your right ill be opening an a/c straight away, but the website states 5.5% not 8.5%

buglawton

The A&L sales rep was no doubt giving me the over-sell. Website must be correct.