A&L Online Saver rate

jude123_2

just had a letter informing me that the rate dropped again on Sept 2nd to 4.75%.

I've just recently opened an e-savings account with first direct paying 5%. Would I be best transferring most of the money to this (leaving some behind for emergencies) or will they likely follow suit and drop the rate?

YorkshireBoy

jude123 wrote:

just had a letter informing me that the rate dropped again on Sept 2nd to 4.75%.

I've just recently opened an e-savings account with first direct paying 5%. Would I be best transferring most of the money to this (leaving some behind for emergencies) or will they likely follow suit and drop the rate?

You are aware of the following on the First Direct account aren't you?...

"instant access to your money* (although no interest is paid on the full account balance in any month you make a withdrawal)

* by internal transfer to another first direct account. Transfers to accounts held elsewhere may take longer."

creditcardking_2

jude123 wrote:

just had a letter informing me that the rate dropped again on Sept 2nd to 4.75%.

I've just recently opened an e-savings account with first direct paying 5%. Would I be best transferring most of the money to this (leaving some behind for emergencies) or will they likely follow suit and drop the rate?

Are they allowed to reduce the interest rate and not inform you until several weeks later?

YorkshireBoy

creditcardking wrote:

Are they allowed to reduce the interest rate and not inform you until several weeks later?

Apparently so...

"3.2 We will tell You personally about any changes to the rate of
interest payable to You within 30 days of the change either
by email or post. Details of current interest rates can be
obtained by visiting our website; https://www.allianceleicester.
co.uk"

Source: A&L Online Saver - Terms And Conditions.