Alliance and Leicester Extend Savings Offer
Writes Dan Drage dan.drage@consumerchoices.co.uk
The Alliance and Leicester bank has extended the offer period on one of its most sought after products.
Alliance and Leicester (www.alliance-leicester.co.uk) has extended the offer period for its one year Fixed Rate Savings Account, with an interest rate of 9% AER. This offer is available only to customers choosing to invest in the Balanced Savings and Investment Plan. The plan comprises a one year Fixed Rate Savings Account from Alliance and Leicester and an investment bond from Legal & General.
Matt Hall, Head of Savings and Investments at Alliance and Leicester had the following to say:
“The Balanced Savings & Investment Plan suits those who are looking to make their money work harder, but still like the security of keeping some of their funds in cash.”
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"Capital and income in the investment bond are not guaranteed and investors may get back less than they invested"
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While the Fixed Rate Savings Account element offers the competitive annual rate of 9% AER, the investment bonds from Legal and General aim to provide higher returns than a typical savings account over the medium to long term.
Unlike a savings account however, capital and income in the investment bond are not guaranteed and investors may get back less than they invested.
Chris Eagle, Commercial Manager at Credit Choices, has checked the small print:
“The rate of 9% AER is only payable if both elements of the plan are still in force at the end of the one year term and subject to no withdrawals, so you need to keep depositing money into the account for 12 months without withdrawing any. Should you make a withdrawal, the interest rate takes a sharp drop to 6.3%”
He continues:
“Early withdrawals are subject to 180 days' loss of interest, so only consider this scheme if you’re confident you won’t need to dip into those savings over the course of the next 12 months.”
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