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

xnetco

Here's the link to the Closed Issue rates.

http://www.alliance-leicester.co.uk/savings/index.asp?page=closed-rates

MrChips

HGLTsuperstar - I hope you aren't thinking of transferring your Direct ISA money to ICICI?? You will lose the privileged tax status. ICICI is paying 5.4% GROSS, i.e. 4.32% net (for a basic rate taxpayer) vs Direct ISA 5.15% Net and Gross.

Your Direct ISA is pretty much the best place for your ISA funds at the moment (apart from maybe First Direct paying 5.5% but that is only until February when it drops way lower).

MrChips

Jenyking, Issue 1 is the original Direct ISA for people who opened an account up to 11/07/05. At that point, A&L closed the ISA and no further applications were accepted. Anyone who got in before this point is eligible for the interest rates applicable for Issue 1 ISA.

Issue 2 ISA was then set up. Anyone who applied after 11/07/05 got one of these. This is a separate account and eligible for completely different interest rates.

HGLTsuperstar

MrChips wrote:

HGLTsuperstar - I hope you aren't thinking of transferring your Direct ISA money to ICICI?? You will lose the privileged tax status. ICICI is paying 5.4% GROSS, i.e. 4.32% net (for a basic rate taxpayer) vs Direct ISA 5.15% Net and Gross.

Your Direct ISA is pretty much the best place for your ISA funds at the moment (apart from maybe First Direct paying 5.5% but that is only until February when it drops way lower).

Well I'm a non-tax payer so that's not a consideration, but the problems with ICICI are. Still have £400 allowance on this year's ISA and feel it is the safest place at the mo', but after that will have to see about ICICI as have account number & login ID but am still waiting for the password in the post so still can't access the account. How long does it take anyone? :A

Indispensable_Hobbes

MrChips wrote:

Jenyking, Issue 1 is the original Direct ISA for people who opened an account up to 11/07/05. At that point, A&L closed the ISA and no further applications were accepted. Anyone who got in before this point is eligible for the interest rates applicable for Issue 1 ISA.

Issue 2 ISA was then set up. Anyone who applied after 11/07/05 got one of these. This is a separate account and eligible for completely different interest rates.

Thankyou I think mine is number 1 in that case.

Direct ISA rates Annual Gross Gross AER*
£1+ 5.15% 5.15%
Rates effective for accounts opened prior to 11/07/05. Rates effective from 02/09/05

Previous rates Annual Gross Gross AER*
£1+ 5.40% 5.15%
Rates effective for accounts opened prior to 11/07/05. Rates effective from 03/02/05

BenL

I guess there's a letter in the post telling me how the online saver I opened in March 05 has gone from being a market leader to an also ran in the last 2 months.

Onto the next.

Come on moneysavers don't fall into t the lazy trap and leave your money in the online saver.

As the rate changed on 02/09/05 I think they have 30 days to tell holders.

Is that correct?

Ben