Alliance & Leicester 10% ISA

ashleyhouse

I've just seen (and applied for quickly!) a 10% ISA with Alliance and Leicester. Martin doesn't seem to mention this on his best ISA article ... does anyone know why?

Here's a link to the offer:
http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-isa&ct=savingshome:money:
:beer:

Baldur

ashleyhouse wrote: »

I've just seen (and applied for quickly!) a 10% ISA with Alliance and Leicester. Martin doesn't seem to mention this on his best ISA article ... does anyone know why?

Here's a link to the offer:
http://www.alliance-leicester.co.uk/savings/index.asp?page=prem-isa&ct=savingshome:money:
:beer:

1. You have to open their Premier Current Account to qualify.
2. In order to transfer in previous years' ISA funds, you have to put 50% or more of those transferred funds into a Stocks & Shares ISA.

Enough there to put me off.

Aegis

Baldur wrote: »

1. You have to open their Premier Current Account to qualify.
2. In order to transfer in previous years' ISA funds, you have to put 50% or more of those transferred funds into a Stocks & Shares ISA.

Enough there to put me off.

Out of curiosity, why is it enough to put you off opening the current account and using the 10% tax free that they're offering? It's not even like you have to use the account much, and in fact you could just set up standing orders for £500 per month between your "real" current account and the A+L one. With the free overdraft they offer, you could even turn the situation to your advantage!

Baldur

Aegis wrote: »

Out of curiosity, why is it enough to put you off opening the current account and using the 10% tax free that they're offering? It's not even like you have to use the account much, and in fact you could just set up standing orders for £500 per month between your "real" current account and the A+L one. With the free overdraft they offer, you could even turn the situation to your advantage!

The A&L Premier a/c details say "Make the most of our exclusive tax-free rate of 10.00% gross p.a./AER (variable) with our Premier ISA Issue 2 (available when you open and pay in your main income to a Premier Current Account)" - as my present current a/c is paying me a high percentage on around £6K of regular savings until August and I have no intention of transferring any of my hard-earned Cash ISA funds, which are in fixed rate products that offer good interest rates, into A&L's S&S ISA, I see no real benefit from opening an account for an extra couple of percentage points on £3,600 for a year.

Aegis

Baldur wrote: »

The A&L Premier a/c details say "Make the most of our exclusive tax-free rate of 10.00% gross p.a./AER (variable) with our Premier ISA Issue 2 (available when you open and pay in your main income to a Premier Current Account)" - as my present current a/c is paying me a high percentage on around £6K of regular savings until August and I have no intention of transferring any of my hard-earned Cash ISA funds, which are in fixed rate products that offer good interest rates, into A&L's S&S ISA, I see no real benefit from opening an account for an extra couple of percentage points on £3,600 for a year.

Which current account did you find that would pay high interest on up to £6k...? As far as I'm aware, I'm transferring out of the 2nd best current account (6.3% AER on up to £2500) and into the A+L one for the extra 3.5% tax free on more lump sums. There's nothing stopping me from continuing to use the interest bearing current account if I want, all I'd need to do is transfer in enough to keep both accounts active each month.

Baldur

Aegis wrote: »

Which current account did you find that would pay high interest on up to £6k...?

It's actually slightly less than 6k at the moment (£5800, or so but with another £1000 to go in before the rate ceases). I'm in the second year of Lloyds TSB's two-year current account-linked regular savings at 8% - the account is no longer available (certainly not as a two-year option, anyway).;)

Aegis

Wow, nice. I can certainly see why you'd not want to give that one up!