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Alliance And Leicester Launches 12% Savings Account

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I've just checked the AL&L website to confirm this.

Basically, it's their regular-saver lost-leader product that entices you to sign up for their current account, which also pays a rather nice 5% in credit.

Now, I ain't readin' too much into this, but some of my thoughts are:

1. I know 12% on a £250-month drip fed account doesn't earn a huge amount of interest. In fact, feed this from a BM internet easy access issue 6 and you get the average of 5.2% and 12% on £3K, which is 8.6% gross or 6.88% net (20% tax payers) or 5.16% net (40% tax payers), beating many mini-cash ISAs.

2. It does strike me banks are taking matters into their own hands regarding consumer debt. They are the ones that are causing the problem on the one hand but also have to "go-with-it to" increase their lending market share. On the other hand, these lost-leader products are SURELY designed to encourage a saving habit rather than a spending habit. The banks know what's coming and they're trying to stop it in spite of fabricated CPI and RPI results that lead to unrepresentative interest rates.

3. AL&L have only recently announced they are getting into BTL mortgages. This is rather late in the game, and probably means they're already now accepting lower LTV deals. While other banks have to swallow increasingly bad credit, AL&L have held back, at least in terms of the BTL circus. And now they're grabbing more and more customers and more and more working capital with this kind of 12% offer. Will AL&L be left hold more cards than its high street rivals when the economy finally goes pop??

4. Is AL&L a safer home for your money that other high street banks therefore?

All FTBs and STRs with savings pots moaning about interest rates... it's time to stop. You can all quote Al Pacino in the Devil's advocate to your mates at work - "It's my time now".

AF.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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