Alliance and Leicester's online Premier Direct account - Query

antispam246

It's says the interest of 8.5% is available on amounts upto £2500. What's the best way to make use of this? Would you lose the rate if you say put in £2500 then went over due to interest? Or is the itnerest added on annually in which case you could just stick in £2500 and then shift it out elsewhere at the end of the year plus the interest?

Is it a good account to use for drip feeding?

Basically just interested in the best uses for this account, other than a bank account.

YorkshireBoy

antispam246 wrote: »

What's the best way to make use of this?

Deposit £2,500
Fund with £500 each month (a condition of the account)
SO this £500 out to a Halifax 10% regular saver each month
Withdraw the £14 (or so) interest you'll earn each month to supplement your spending money

Would you lose the rate if you say put in £2500 then went over due to interest?

Anything over £2,500 earns 0.1%, so 'spend' your interest each month as above.

Or is the itnerest added on annually...

Interest is paid monthly.

Is it a good account to use for drip feeding?

Yes, but only for the first year. After that, the rate falls to BOE less 1% (currently 4% AER). You can close the account after the first year, wait 3 months, and apply again as a new customer...and enjoy whatever rate the account is paying at the time.

antispam246

Thank you for clarifying. One more thing. If I happen to go over the £2500, withdrawing the itnerest to take it back under £2500 (forgetting drip-feeding in this example) will bring back the 8.5% right? What I mean is, if you go over 2500 you don't lose the 8.5% for good, just while it's over 2500 right?

YorkshireBoy

Let's say you have £2,514.26 in the account...

£2,500 of it will earn 8.5% and the other £14.26 will earn 0.1% (ie, nothing!!).

You don't forfeit 8.5% on the first £2,500 if you have more than this in the account.

antispam246

Thank you for clarifying everything, again. Just need to upgrade my pin sentry then I'm set

cundall

remember quidco! I got £50 for going with A&L then i have a standing order of £1k to my Halifax high interest account then a standing order of £500 to my Halifax Regular saver... I use my Halifax as my main account though my wages go into my A&L (from this month)....

I think this is a good method..

antispam246

Yup, thanks, did the Quidco, already tracked and validated at £50

antispam246

Just an update and extension to my query.

I tranferred £2500 to my new A&L Rem Direct Account from my Barclays current account, I did the transfer online using the "pay someone" option. Although Barclays showed in my statements the money had gone which was shown immediately, it's been almost 2 days and checking my A&L account online still does not show the money has been added. Should I contact A&L or wait longer. I thought the transfer process was supposedly sped up.

YorkshireBoy

antispam246 wrote: »

I did the transfer online using the "pay someone" option.

When, and at what time?

antispam246

YorkshireBoy wrote: »

When, and at what time?

25/06/08 , it was sometime in the afternoon. Can't pull up exact time.

YorkshireBoy

antispam246 wrote: »

25/06/08 , it was sometime in the afternoon. Can't pull up exact time.

I no longer have a Barclays account so don't know if they've adopted FP's yet.

If they haven't, and your money has been sent via BACS (and actioned before 18:30 Wednesday?), then it should land at A&L on Friday morning.