Alliance and Leicester ISA 3.5% (3% above base rate for first year, min 3.5% in first year)
343°Expired

Alliance and Leicester ISA 3.5% (3% above base rate for first year, min 3.5% in first year)

87
Found 24th Feb 2010
This is higher than anything else available at present for a tax free ISA. Guarantees to be 3% above the base rate for the first year. Link should be: alliance-leicester.co.uk/sav…spx. Penalty free withdrawals. Unfortunately, transfers in are not allowed so only new money. Part of the Santander group.

Specific Flex ISA Terms and Conditions: alliance-leicester.co.uk/cus…pdf
- RealDealSeeker

87 Comments

Original Poster

Link should be: [url]www.alliance-leicester.co.uk/savings/flexible-isa.aspx[/url].
Try this

Thanks. Only a few months left of the 09/10 tax year, if you don't use it you lose it!

mrcoxexcel;7937068

Unfortunately, transfers in are not allowed so only new money. Part of … Unfortunately, transfers in are not allowed so only new money. Part of the Santander group.



i don't get this.. my missus has about £3.5k in an ISA atm and is on the hunt for a better option.. what's to stop her just withdrawing all this money to her current account, then using it to open this A&L one? surely if an ISA deal is "new money only", one could just do this?

soz, i've read the MSE articles on ISAs and i still don't understand them at all lol..

dirtybobby;7937618

i don't get this.. my missus has about £3.5k in an ISA atm and is on the … i don't get this.. my missus has about £3.5k in an ISA atm and is on the hunt for a better option.. what's to stop her just withdrawing all this money to her current account, then using it to open this A&L one? surely if an ISA deal is "new money only", one could just do this?



Once you withdraw the money from an old ISA, you lose the tax free benefit for that year (amount withdrawn). The best thing to do is transfer to another provider. I haven't read the T&C's for A&L, so don't know if this offer is for new subscriptions for this tax year or if they allow transfers in.

EDIT just read "Unfortunately, transfers in are not allowed so only new money"

Tom Pickering;7937684

Once you withdraw the money from an old ISA, you lose the tax free … Once you withdraw the money from an old ISA, you lose the tax free benefit for that year (amount withdrawn). The best thing to do is transfer to another provider. I haven't read the T&C's for A&L, so don't know if this offer is for new subscriptions for this tax year or if they allow transfers in.EDIT just read "Unfortunately, transfers in are not allowed so only new money"



I was wondering this but I assume it means (and I know nothing about this) that if you are transfering from one ISA to another then you could transfer any amount but with this one you can only start with your anual allowance! Am I right anybody?

Original Poster

Dodger21;7937725

Ant thoughs on this one??http://www.skipton.co.uk/default.aspx



Skipton offer a good fixed rate until May 2013, but this seems a little long to me and rates are likely to go up far higher by then, given inflation etc.. Fixing for 12 to 18 months may be ok but not longer, I guess. "Withdrawals can be made and will incur a penalty of 180 days loss of interest". So if you want your money from Skipton before 2013 it's going to be expensive.

col996s;7937721

with this one you can only start with your anual allowance! Am I right … with this one you can only start with your anual allowance! Am I right anybody?



That's correct, as long as you don't have another ISA in your name with another provider for this tax year (ending April '10)

Tom Pickering;7937684

Once you withdraw the money from an old ISA, you lose the tax free … Once you withdraw the money from an old ISA, you lose the tax free benefit for that year (amount withdrawn). The best thing to do is transfer to another provider. I haven't read the T&C's for A&L, so don't know if this offer is for new subscriptions for this tax year or if they allow transfers in.EDIT just read "Unfortunately, transfers in are not allowed so only new money"



i'm still confused.. is there a very small window when you're allowed to open an ISA or something? cos if not, what's to stop the missus waiting until her "tax free benefit" is paid into her current ISA, then withdrawing the full amount, and using that cash to open a new ISA?

again, apologies, i've read over a couple of guides on this ISA business but i just can't get my head round them.. the missus' current ISA has dropped to something daft like 0.1% so she's desperate to move it, but between us we just don't see to have a clue! it's only £3.5k but still, she wants to maximise her returns innit..

dirtybobby;7937930

i'm still confused.. is there a very small window when you're allowed to … i'm still confused.. is there a very small window when you're allowed to open an ISA or something? cos if not, what's to stop the missus waiting until her "tax free benefit" is paid into her current ISA, then withdrawing the full amount, and using that cash to open a new ISA?again, apologies, i've read over a couple of guides on this ISA business but i just can't get my head round them.. the missus' current ISA has dropped to something daft like 0.1% so she's desperate to move it, but between us we just don't see to have a clue! it's only £3.5k but still, she wants to maximise her returns innit..



The main benefit from from an ISA is you receive interest which is TAX FREE. If your interest is rubbish, then transfer to another provider. You can't take the money out and deposit with another provider. It must be transfered. If you take the money out as cash (or cheque), you lose the allowance for that amount, for that year.

Tom Pickering;7938049

The main benefit from from an ISA is you receive interest which is TAX … The main benefit from from an ISA is you receive interest which is TAX FREE. If your interest is rubbish, then transfer to another provider. You can't take the money out and deposit with another provider. It must be transfered. If you take the money out as cash (or cheque), you lose the allowance for that amount, for that year.



ah right, gotcha (i think)! i was forgetting that you have an allowance per year, which is fixed on a per person basis, not per account..

hmm.. the missus' ISA is currently with A&L i've just realised, so she won't be able to take advantage of this anyway! thanks for the advice though, at least you've educated me a little lol..

How do new ISA's compare to fixed rate savings bonds?

Would it be better to go for something like ICICI Bank UK
HiSAVE Fixed Rate Account 2 year account 4.25%

rather than an ISA at 3.5%

I wouldn't know how to go about working out the maths...

Can anyone help?

mrcoxexcel;7937764

Skipton offer a good fixed rate until May 2013, but this seems a little … Skipton offer a good fixed rate until May 2013, but this seems a little long to me and rates are likely to go up far higher by then, given inflation etc.. Fixing for 12 to 18 months may be ok but not longer, I guess. "Withdrawals can be made and will incur a penalty of 180 days loss of interest". So if you want your money from Skipton before 2013 it's going to be expensive.



OK thanks for that.

JIM1973ANDREWS;7938421

How do new ISA's compare to fixed rate savings bonds? Would it be better … How do new ISA's compare to fixed rate savings bonds? Would it be better to go for something like ICICI Bank UKHiSAVE Fixed Rate Account 2 year account 4.25%rather than an ISA at 3.5%I wouldn't know how to go about working out the maths... Can anyone help?



You can get a slightly better rate on a fixed term bond but you will be subject to tax and will also have fairly high penalties if you want to access the money during the term of the bond. Like everything else some are better than others, its up to you as the consumer to read the T&C's and make sure you are buying a product that fits your needs. You will find way more info over at moneysaving expert than you will on here.

Hot deal BTW, shame I've used my allowance already this year but will happily open a new ISA in April if this deal is still around.

dirtybobby;7937618

i don't get this.. my missus has about £3.5k in an ISA atm and is on the … i don't get this.. my missus has about £3.5k in an ISA atm and is on the hunt for a better option.. what's to stop her just withdrawing all this money to her current account, then using it to open this A&L one? surely if an ISA deal is "new money only", one could just do this?soz, i've read the MSE articles on ISAs and i still don't understand them at all lol..



Course you can do that. If you don't plan on using your 09/10 allowance then it's fine to do what you said. However if you want to open a new ISA before April and you had done what you said, then you won't be able to because you will have used up your allowance bar £100, you'd have to wait until April when the 10/11 tax year begins when your allowance will be renewed.

I'm with dirtybobby on this as dont fully understand this ISA stuff.

If I've got this right I can put £3600 into this before April 5th and this will then earn tax free interest (I gues only from when I put the money in till April) then if I put nother £3600 in when the new tax year starts then next year I will have tax free interes on £7200 as long as I dont touch it.

Is this right?

Original Poster

2poor4this;7939948

I'm with dirtybobby on this as dont fully understand this ISA stuff.If … I'm with dirtybobby on this as dont fully understand this ISA stuff.If I've got this right I can put £3600 into this before April 5th and this will then earn tax free interest (I gues only from when I put the money in till April) then if I put nother £3600 in when the new tax year starts then next year I will have tax free interes on £7200 as long as I dont touch it.Is this right?



That's right. If you do not already have an ISA for this tax year then you can open one now at this rate and then another after April 5th. However, it might be that A&L will withdraw this excellent offer once their coffers are full - seems that societies don't want to take in too much money and only offer good rates for a short time.

Original Poster

[QUOTE=JIM1973ANDREWS;7938421]How do new ISA's compare to fixed rate savings bonds? Would it be better to go for something like ICICI Bank UK
HiSAVE Fixed Rate Account 2 year account 4.25% rather than an ISA at 3.5%. I wouldn't know how to go about working out the maths...
/QUOTE]

3.5% tax free = 4.35% taxed @ 20% (or 5.83% taxed @ 40% - higher rate tax payer). Hope this helps. The good thing about an ISA is that it's tax free for as long as you leave it inside the ISA. So tax free next year and beyond as well as this year if you can leave your money untouched.

BTW ICICI bank has dreadful customer service - I invested with them last year and regretted it within 4 weeks when they had failed to set up an account and failed to respond to my enquiries, but had to wait for a year to get my money out. I would never want to go back and would take an interest hit just to avoid them.

Thanks for that

[SIZE=4](always 3% above base rate, min 3.5%) - not so!
[/SIZE]


Header needs changing - it's only 3% over base for the first 12 months. After that it's a measly 0.5% and you'll need to move elsewhere to get a decent rate. Typical A+L stunt! Be warned. :x

Original Poster

Header needs changing - it's only 3% over base for the first 12 months. … Header needs changing - it's only 3% over base for the first 12 months. After that it's a measly 0.5% and you'll need to move elsewhere to get a decent rate. Typical A+L stunt! Be warned. :x



Header changed - well spotted (but it was in the text of the deal -the header is limited in space).

mrcoxexcel;7941863

Header changed - well spotted (but it was in the text of the deal -the … Header changed - well spotted (but it was in the text of the deal -the header is limited in space).



Thanks & sorry - not getting at you (just A+L). Just wanted to make sure they didn't mislead anybody into signing up without realising that they'd have to switch again in a year. Why is that banks have become so devious? :thumbsup:

Newbold;7941583

[SIZE=4](always 3% above base rate, min 3.5%) - not so![/SIZE]Header … [SIZE=4](always 3% above base rate, min 3.5%) - not so![/SIZE]Header needs changing - it's only 3% over base for the first 12 months. After that it's a measly 0.5% and you'll need to move elsewhere to get a decent rate. Typical A+L stunt! Be warned. :x



They're all like that. 3% above base rate for 12 months is a monster deal in the current climate. I opened an M&S cash ISA a year ago or so at 3.1%, it fell to 2.65% after about 3 months.

Newbold;7941988

Thanks & sorry - not getting at you (just A+L). Just wanted to make sure … Thanks & sorry - not getting at you (just A+L). Just wanted to make sure they didn't mislead anybody into signing up without realising that they'd have to switch again in a year. Why is that banks have become so devious? :thumbsup:



Its hardly devious. Set out clearly and not hidden away in terms. Best rate for a year and its not as if its hard to switch, why I would say a lot of people do anyway

cbryanp;7944029

Its hardly devious. Set out clearly and not hidden away in terms. Best … Its hardly devious. Set out clearly and not hidden away in terms. Best rate for a year and its not as if its hard to switch, why I would say a lot of people do anyway



What's devious is drawing people in with a 3.5% headline rate, and then dropping it to a ridiculously low 0.5% rate - knowing full well that inertia will mean that a large number of people will just leave their money there and do nothing.

I know it's common practice, but that doesn't make it right. In my book, it's devious.

In my experience advising on ISAs, what many people fail to understand with ISAs is the limit (which is due to rise to £5,100) is a total deposit limit.

This means that’s if you deposit £1,000 you can only deposit £2,600 more that year even if you withdraw that amount, it is not a net deposit amount.

It's also pertinent to mention that ISA are often not the answer to your savings, if you don't need instant access to your cash (for a certain period) there are many better options out there. One of these options that people often forget or ignore is your final salary pension (for those that are eligible) this will often be of twice as beneficial as an ISA, but is not as widely understood.

If your lucky enough to have regular money to save, (or a large lump sum) go and seen an investment advisor/broker. (as a rough rule you should have approx. 3 months wages in an instant access account)

The wording on the website seems to be a bit unspecific. Can you transfer out of this account at the end of the year penalty free? T&Cs on the AL website don't seem to include the Flexible ISA account.

I've been thinking about opening a ISA or a normal bank savings account and the only thing thats stopping me is that I don't know what is the best type for me. I am planning on depositing £200 per month for the forseeable, but im starting from scratch - i have no current savings.

If a ISA is the best option for me i'll take advantage of this offer.

Can anyone advise??

dont forget the personal ISA increase rate in April 2010 , also , come the endo f March 2010, there will be a flood of good ISA,s on offer left , right and centre !!

Ok , I dont pay tax at the mom,as not working! Would it be better to put some money in this A-L with the ISA or a norm bank account? Also were is the best place to find out the best % rates? was always working before,so never sorted this type of thing out.Cheers

Mr cool;7948673

Ok , I dont pay tax at the mom,as not working! Would it be better to put … Ok , I dont pay tax at the mom,as not working! Would it be better to put some money in this A-L with the ISA or a norm bank account? Also were is the best place to find out the best % rates? was always working before,so never sorted this type of thing out.Cheers


You may find The Financial Services Authority guidelines useful. Here y'go.
moneymadeclear.fsa.gov.uk/hub…tml

looks like someone else just received their moneysavingexpert email

AD959;7948716

You may find The Financial Services Authority guidelines useful. Here … You may find The Financial Services Authority guidelines useful. Here y'go.http://www.moneymadeclear.fsa.gov.uk/hubs/home_savings.html



Thank you for this,TBH shocked how low the % rates are! So can you swap your money from a old ISA to a new one?Or do have to start again with a new one...sorry about all the ?..lol!But at least I can go in a bank and it looks like I know what I am talking about it! Oh cant see the A-L in the list!:thumbsup:

coffeemate81;7948552

I've been thinking about opening a ISA or a normal bank savings account … I've been thinking about opening a ISA or a normal bank savings account and the only thing thats stopping me is that I don't know what is the best type for me. I am planning on depositing £200 per month for the forseeable, but im starting from scratch - i have no current savings.If a ISA is the best option for me i'll take advantage of this offer.Can anyone advise??



In this case an ISA may be the best option for you, however a few questions will need to be asked first, e.g. how long do you wish to save for, will you be withdrawing from the money etc.

go and speak to someone, get some rates - and see all the accounts that are open to you, it could be a regular saver is also good for you.

Mr cool;7948819

Thank you for this,TBH shocked how low the % rates are! So can you swap … Thank you for this,TBH shocked how low the % rates are! So can you swap your money from a old ISA to a new one?Or do have to start again with a new one...sorry about all the ?..lol!But at least I can go in a bank and it looks like I know what I am talking about it! Oh cant see the A-L in the list!:thumbsup:



I guess you don't pay into a mortgage then, you be quite happy at the low rates then!

most ISA accounts offer a ISA transfer service to transfer your existing balances to them. remeber you can only pay into one account per tax year, paying into more than one is tax fraud.

How's this for a good deal. For several years i've had an online cash e-isa with First Direct and the balance has gradually built up to £9,200. A few days ago, by chance I happened to notice the amount of interest i was getting per month on the balance of £9,200. It was £1.40 per month (yes, a measly £1.40!). I looked at the First Direct front web page and it states in huge letters "2.75% on the cash e-isa account". After making some enquiries, it turns out that i'm being paid just 0.20% interest and that the 2.75% rate applies to new money only. They will not allow internal balance transfers to the new rate. I'm now in the process of transferring the money out from First Direct to another provider to get a better interest rate.

MORAL:
1) Watch your savings and investments like a hawk.
2) To generalise, despite the events of the last 18 months, the major banks appear to have learned nothing. They continue to outrageously overcharge folk on low incomes who even slightly exceed their overdraft limit and given half a chance, they'll rob you blind of your savings. To rub salt in the wound, as a taxpayer i bloody well own half of them. You couldn't make it up!

topazz;7948980

How's this for a good deal. For several years i've had an online cash … How's this for a good deal. For several years i've had an online cash e-isa with First Direct and the balance has gradually built up to £9,200. A few days ago, by chance I happened to notice the amount of interest i was getting per month on the balance of £9,200. It was £1.40 per month (yes, a measly £1.40!). I looked at the First Direct front web page and it states in huge letters "2.75% on the cash e-isa account". After making some enquiries, it turns out that i'm being paid just 0.20% interest and that the 2.75% rate applies to new money only. They will not allow internal balance transfers to the new rate. I'm now in the process of transferring the money out from First Direct to another provider to get a better interest rate. MORAL: 1) Watch your savings and investments like a hawk.2) To generalise, despite the events of the last 18 months, the major banks appear to have learned nothing. They continue to outrageously overcharge folk on low incomes who even slightly exceed their overdraft limit and given half a chance, they'll rob you blind of your savings. To rub salt in the wound, as a taxpayer i bloody well own half of them. You couldn't make it up!



good advice up to a point.

what people should remember about banks is that they are a company that is trying to make money. it is not their job or duty to make sure you have you money invested to it's full potential.

point 2 however is ill-educated and ill-informed. Banks have every right to charge fees for abusing the terms and conditions as described in account literature. Most banks, including A&L were not bailed out, and are not government owned.

topazz;7948980

How's this for a good deal. For several years i've had an online cash … How's this for a good deal. For several years i've had an online cash e-isa with First Direct and the balance has gradually built up to £9,200. A few days ago, by chance I happened to notice the amount of interest i was getting per month on the balance of £9,200. It was £1.40 per month (yes, a measly £1.40!). I looked at the First Direct front web page and it states in huge letters "2.75% on the cash e-isa account". After making some enquiries, it turns out that i'm being paid just 0.20% interest and that the 2.75% rate applies to new money only. They will not allow internal balance transfers to the new rate. I'm now in the process of transferring the money out from First Direct to another provider to get a better interest rate. MORAL: 1) Watch your savings and investments like a hawk.2) To generalise, despite the events of the last 18 months, the major banks appear to have learned nothing. They continue to outrageously overcharge folk on low incomes who even slightly exceed their overdraft limit and given half a chance, they'll rob you blind of your savings. To rub salt in the wound, as a taxpayer i bloody well own half of them. You couldn't make it up!



You're right!!! :thumbsup: Trust none of them....i had a "monthly saver" with Nationwide and started high...then realised that the £4k in each account was only getting interest on "new year money" (£20 x 12 months) and "old money" earns nothing!!!??? Con artists!!! :x
This A&L deal looks good 'though....£5,100 (if you have it) if you're over 50 too!

I just shoved another £23000 in the AA 5 year fixed at 5.1%. Their previous offering was 5.15% back in October. If rates shoot up enormously before then I'll have to consider if it's worth early withdrawal. I'm a non-taxpayer and even so, rates are pretty low - getting 3% at Tesco, got a 1 year fixed at 4.3% at Northern Rock. Might be worth me doing an A+L ISA cos I shouldn't have to pay back the tax if I withdraw after the year. Did really well with Icesave in the good old days!

Hi guys, I'm after a little advice...

If I take advantage of this offer, exactly how much can I put in?
Also, I might need to withdraw it before the 12 months is up (or at least some of it) and so how much will I lose from this, or will I not benefit at all unless I can keep the money in there for 12 months?

Thanks!
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