abbey direct transfer

wheredoesallthetimego

I've filled in an on-line application for a transfer from BB (or ybs - can't remember which) to abbey direct. Is that a reasonable thing to do?
Can't see much mention of abbey here but it's in the best for transfers list - just wondering why.

Baldur

wheredoesallthetimego wrote: »

I've filled in an on-line application for a transfer from BB (or ybs - can't remember which) to abbey direct. Is that a reasonable thing to do?
Can't see much mention of abbey here but it's in the best for transfers list - just wondering why.

Reading this thread from post 230 onwards may enlighten you, its terms & conditions are less transparent and, therefore, are more liable to be misinterpreted than those of other Cash ISA products which offer a similar rate of interest.

cc004-2

I'm in the process of transferring my Brittania ISA 4.85%AER variable to the Abbey offering.

Have just read the thread mentioned by Baldur and checked the rates on Abbeys website again.

Maybe I'm being thick (bit of a financial newbie), but isn't 6.25%AER for 13months a comparitively good place for my money to be - for 1 year - and then transfer it elsewhere before the rate drops? Am I missing something in their T&C's?



Cheers
CC

Baldur

cc004-2 wrote: »

I'm in the process of transferring my Brittania ISA 4.85%AER variable to the Abbey offering.

Have just read the thread mentioned by Baldur and checked the rates on Abbeys website again.

Maybe I'm being thick (bit of a financial newbie), but isn't 6.25%AER for 13months a comparitively good place for my money to be - for 1 year - and then transfer it elsewhere before the rate drops? Am I missing something in their T&C's?

The headline rate of 6.25% is being read by many (including yourself, apparently) as being fixed, it is not - it's clearly stated to be variable "The Direct ISA gives you a preferential variable rate of interest for 13 months from the date of opening."

cc004-2

Hi Baldur,

thanks for the reply - you're correct, and I'm sure I'm not the only person to incorrectly interpret it the same way. This is the quote on their website that got me... "you want a great tax-free rate of 6.25% AER for 13 months".

Is it worthwhile trying to cancel this application (did the online stuff last week and haven't heard back yet)? Or, just hang on in there for 12 or so months assuming the rate doesn't drop dramatically during this period.... Who knows!? :rolleyes:

Apologies, too many questions, but I'm still learning....

Cheers,
ChrisC

Baldur

cc004-2 wrote: »

Is it worthwhile trying to cancel this application (did the online stuff last week and haven't heard back yet)? Or, just hang on in there for 12 or so months assuming the rate doesn't drop dramatically during this period.... Who knows!?

As you say, who knows? You have normally a 14 day 'cooling off' period with Cash ISAs, if you wish to cancel but that decision is yours.

I was merely indicating that people need to read the whole description and Ts & Cs of financial products, rather than being seduced and bedazzled by the headline rate.

wheredoesallthetimego

>> its terms & conditions are less transparent
That's the main reason I posted here.
It said the rate was variable but a lot of the text seemed to imply it was fixed.

Similarly transfers out - couldn't find anything definitive about it but they seem to be free.

I like the way that they can change the interest rate then tell you about it within 30 days after the change.

Bit of a pain that the only info about the account is in the legal bit which combines it with a number of other accounts.

To use this account you would have to be prepared to transfer after 13 months so I guess it's not much more effort to transfer earlier if the rate goes down.

Baldur

To use this account you would have to be prepared to transfer after 13 months so I guess it's not much more effort to transfer earlier if the rate goes down.

That's exactly what I did in February when the previous Direct ISA issue became uncompetitive (also because of some customer service issues).

wheredoesallthetimego

What happened to the previous one? Did it have a bonus period like this one and was it ok until the end of the bonus period?

Baldur

It had a fixed bonus until 1st May this year but, like this one the headline rate was variable. The fact that I transferred out around 35k before the end of the bonus period should tell you what happened - other products were more competitive.

Abbey's appalling customer service, which IMHO has declined dramatically since the Banco Santander takeover, didn't help either

Seen_the_light_4

I applied online for an Abbey Direct ISA over a week ago and completed the transfer details for my NS&I ISA.

I hadn't heard anything so called on Saturday to be told they couldn't find any record and that there had been a system problem.

Someone was due to ring me back, but still haven't heard anything!

The wife opened an ISA with Icesave at the same time as she already has a savings account and is happy with the service, I went chasing the bigger rate at Abbey. Icesave have confirmed the account and sent off the transfer request within a few days.

Will give the Abbey a couple of days then cancel and go to Icesave, a fraction of a percent is not worth the customer service hassle.