A+L Direct ISA and (Old) Online Saver Rates Down

anticlaus105

Online saver down to 4.75% from 5.00% (ac opened before 13/06/05)
Direct ISA down to 5.15% from 5.40% (ac opened before 11/07/05)
as of 02/09/05

!!!!!!!

miller

Still not a bad rate on the old Direct ISA. There can't be much about beating it.

oldagetraveller

Thanks for that anticlaus, I was only looking at their website on Thursday to check they were still paying 5.4% on my old direct ISA. They sneaked that reduction in quickly and covertly!
As miller says though it's still not too bad. Hopefully they'll not sneakily reinstate the transfer fee now that the rate's dropped, of when/if they drop it again?

anticlaus105

You are correct. The direct ISA is still a pretty good rate. I just looked on the website and can find no mention of a transfer fee on the new product. Is this the case with the old issue direct ISA also. I thought there was a £25 fee.

Hobo_2

They dropped the £25 exit fee, after case brought against them concerning this fee.

Milarky

Their ISA rate is still competitive - any restrictions on accepting transfers?

Opps! just noticed this: New Direct ISA is an uncompetitive 4.50%!! This would only be an option for someone who [may have] opened an account with a £1 before 13/06/05 - and so 'locked in' to whatever higher rate remained available for 'existing' customers. Even with £25 penalty on transfers you'd just take out the £1 and lose nothing, but it would have to have been via a transfer [for '£1']from a previous year not to have effected your current year's subscription -and £3000 limit. This could have worked - but 'hindsight' is a wonderful thing!!

Once again, though, absolutely no notice is required to cut interest rates (and where 'notice' is given it is only up to a month after the change takes effect) Does anyone else feel, like me, that this is an instance of the banking code (a voluntary agreement) being written to suit banks and as 'anti-competitive'? Or do you feel it is just 'fair dos'? Nationwide, for instance, only gave about a week's advance notice (postponing the 'decision' on savings rates by about two weeks whilst rushing an announcment covering mortgage rates out straightaway) but at least that makes them one of the 'better' players...

HGLTsuperstar

Was all set to close my ISA 2 weeks ago, as thought had been moved to new rate, but told as opened in April, was still getting 5.4%, now this. SNEAKY! They must have known as this was after the latest BOE rate cut. but until ICICI bank sprts itself out, I think I'll have to put up with it

xnetco

I tried transferring my ISA from A&L last week but check your rate. They've only dropped the rate for the second issue ISAs. My current ISA with them is still @ 5.4%! I believe all ISA's starting with account number 602 or 603 are still on 5.4%.

MrChips

I don't know where you heard that. According to the A&L website, Direct ISA issue 1 interest rate went down to 5.15% from 2/9/05.

HGLTsuperstar

Do think I was mislead, by being told my ISA was still paying 5.4% when they must have known within 2 weeks it would be dropping, having said that it is still a very good rate and, as I said before, I'm still not totally comfortable with the ICICI bank so I think my money for now is in the safest place for the interest earned and best to reconsider in January when A&L pays the interest and by then the ICICI situation should be clearer one way or the other

Indispensable_Hobbes

I'm confused by this, what are issue 1 and issue 2, are the rates different for each and if so what are they?

I only see rates for Direct ISA Issue 2