NatWest to Alliance and Leicester?

osaddict · 27 April 2008 at 4:36PM

Right, I have a number of years worth of 'full' ISAs in NatWest currently.

Bit slow off the mark, but I have yet to make ANY ISA investment this year.

I think it makes sense for me to move from NatWest to another provider, as NatWest's rate is pretty poor.

I currently have their Cash ISA account, the following rates are applicable to me:

AER GROSS
£18,000 to £26,999 5.35% 5.22%

I've looked at the articles on this site and can see ICESave would be the place to go, however, I don't feel entirely confident with them, so would prefer a UK bank.

I looked at the A&L Direct ISA Issue 4, as detailed here:
http://www.moneysupermarket.com/isa/IsasDetails.asp?IsasID=2912&Amount=3000

Balance AER Gross
£1 6.25% 6.25%

It takes transfers in, and has instant access etc, I see it pays interest yearly
rather than monthly as NatWest does - is that a problem? - I didn't think so.

I understand its only for 1 year, at the end of the year I presume it will still
remain as an ISA account, just at a lower rate, giving me the option to leave it in there (foolish) or to move it the following year, to a provider which accepts transfers once again.

Do you guys think that is the best course of action? - Migrating from Nat West to A&L for 1 year then moving again.

(A slight aside, but I will have to seek out other savings accounts too - I have a surplus in my current account which could be put to much better use, I see after an ISA a 'regular saver' is reccomended, however, I would be looking for an account which takes an instant lump sum - perhaps the Kaupthing Edge fixed term deposit)

Baldur · 27 April 2008 at 4:52PM

osaddict wrote: »

Do you guys think that is the best course of action? - Migrating from Nat West to A&L for 1 year then moving again.

It's the course of action which I would take, whether or not it's best for you can only be decided by you. Don't forget that this year's £3,600 can be added if, as you say earlier, you have not yet made any ISA subscription for this (tax) year.

osaddict · 27 April 2008 at 5:28PM

I think it would be the best course of action for me at present.

I wonder how much hassle it will be to set it up, presumably I can just apply online for the A&L account and then sort the transfer out from there?

Looking more that that Kaupthing Instant Access account, 6.31% gross rate seems very good to me, I think ill put the majority of my current account in there once I have the ISA's set up and full.

Actually - 6.31 gross- that's better than the ISA rate at 6.25 is it not?!!

Baldur · 27 April 2008 at 5:35PM

You can apply online & download the transfer form (click the 'Transfer in' link) at the same time from HERE.

osaddict · 27 April 2008 at 5:41PM

Wow, thanks for the speedy reply and linkage Baldur

pensioner_margaret · 1 May 2008 at 1:23PM

I am 3 weeks into the transfer process from 1st Direct to Alliance and Leicester and am having a problem.
A family emergency (son's wife took off with toyboy leaving a financial mess) has arisen, and I have agreed to loan my son £6000 to sort it.
Alliance and Leicester have said that they are inundated with transfers, and are unable to say when the funds will appear in my ISA - they cannot even say whether the funds have been recieved by them.

This is the hazard of swopping - you never know when such emergencies might arise.