Abbey National Mini Postal ISA

SarahBrown_3

I'm thinking of taking one of these out. Their rate is 5.10%, so what's the catch?

Are there restrictions on taking my money out. I wouldn't need access to it immediately, but do they impose penalties for not keeping it in a certain amount of time (I want to keep it there for 2-3 years).

Sorry if this sounds completely thick, but this is the first time I've ever had any money to put away, so I don't really know what I'm doing. All I know is I want no-risk saving.

Sarah

System

my wife and i are both with abbey for cash isa - no catches that i can see - instant access - 5.1% on whole balance and you can now open one at abbey branch as well as by post - a super deal in my opinion ( has also gone up by full 0.25% after each recent base rate rise unlike intelligent finance and others)

SarahBrown_3

Thanks Frank,

the other one I suppose is Halifax, who are doing the same interest rate, but you are tied into keeping it there for at least a year.

I heard somewhere that Abbey were in trouble a little while back. What exactly would happen if Abbey stopped trading? I take it I would lose my money? Is this likely to happen or am I just being overly cautious?

Lets put it this way, I can't afford to lose my money.

Sarah

MJSW

Abbey have had some difficulties recently, but in my opinion it is highly unlikely that they will go bust. However if they did, then you would be covered by the Financial Services Compensation Scheme. This would pay all of your first £2,000 of your balance, and 90% of the next £33,000, giving you a maximum compensation of £31,700.

aagoren

Abbey intrest rate (currently 5.1%) is guarenty to be at least 0.5% above BOE till 05/04/05.
So it sounds good now but don't forget it and wakeup in 2-3 to find the intrest is only 3% while BOE is 6% (just for example).
Check it periodicly and if some other banks or BS will offer better rate just switch it.

As there is a huge demand to this product it may take them long time to process your appliation, even if you'll go to the nearest branch. that can be a month or so.

if you'll find the procees take too long, just complain and you may get some extra from Abbey.

I complaint and got £20 from them into the account.

SarahBrown_3

Thanks for your replies, I'm going to go for it.

Sarah