A&L 15% savings acc.

JAIMO_2

Hi all,

I've recently found this site and it's a real eyeopener for me. After reading through the Banking/Saving topics, i decided to open an account with Alliance & Leicester, the one that gives you 8.5% on your balance. It turns out that the have a special offer on at the moment. Linked to this current account is one of their life insurance policies (min £10 pcm) and linked to this policy is a savings account giving 15% interest.

I'm not 100% sure of the T&C's as i've not been to discuss it in full yet (opened the account over the phone) but the offer is only on untill May 31st so i thought i'd let ppl know asap.

<J>

chesky369

Yes, but were you intending to buy a life insurance policy? if you were going to anyway, then fine (possibly) but these accounts have been discussed here before and the concensus seems to be that anything you win on the saver, you lose on the insurance policy.

shuttyian

I have checked this out and they only sell legal and general, and I have had some quotations and to be honest, they are not good value (for me anyway). They are cheaper if you go direct to L&G too!, they take a huge commision, which someone is paying for.

I have found better policies through an broker for less.

But that aside they have a 12% for new customers for a year, which i am helping myself to.

Henwen

Has anyone tried using the A&L account as a savings account ie pay in £2500 and take out and pay £500 back in to meet the rules? Does it work? Do A&L spot this and object?
Also a tip - A&L's e-Saver has a rate of 6.5% which is 1% higher than the plussaver that comes with the premier direct current account. I'm planning to open one after A&L have set up the current account.

Henwen

purplevamp

Henwen wrote: »

A&L's e-Saver has a rate of 6.5% which is 1% higher than the plussaver that comes with the premier direct current account. I'm planning to open one after A&L have set up the current account.

Henwen

I tried to open an ISA with A&L. The first time they lost my identification that they asked for. After going into a branch to redo it, they said it had to be sent off. 2 weeks later I rang up to find out what was happening, they said they didn't have enough info. I told them where to stick their ISA!!

roddydogs

Henwen wrote: »

Has anyone tried using the A&L account as a savings account ie pay in £2500 and take out and pay £500 back in to meet the rules? Does it work? Do A&L spot this and object?
Also a tip - A&L's e-Saver has a rate of 6.5% which is 1% higher than the plussaver that comes with the premier direct current account. I'm planning to open one after A&L have set up the current account.

Henwen

yes u can do this, no they dont stop it:rotfl:

dunstonh

They are cheaper if you go direct to L&G too!, they take a huge commision, which someone is paying for.

IFAs using L&G are even cheaper than going to L&G direct, let alone A&L. Plus, L&G haven't been coming out well priced for a while now so L&G wouldnt come up as the best option for most anyway.

As others have said, they are subsidising one product from the commission of the other. It is also possible that this could lead to miss-sales as well. To take out a life assurance policy you need to have an insurable interest. If you have no life assurance need you dont have an insurable interest. Also, if you have no need, you can then complain about being sold a policy that you didnt need. This sort of promotion has failed with other providers in the past who insisted on a regulated product to be taken out to get the deal and complaints have been upheld where suitability of the regulated product was met.

Henwen

Thanks Roddydogs that's good to know.

Purplevamp - I have also applied to transfer to an A&L ISA so will report back. You could try the National Counties ISA at 6.26% which Martin's latest email recommends.