Alliance & Leicester Current Account - Any Good? (Plus Halifax Rant)

[mawby]

Halifax Rant

 

I've got a high interest current account with the Halifax. It was 5% when I opened it, but nowadays it's only at 1% which gives me 50p a month on average for the huge amount of money I have - not! I have a £1000 overdraft which I've only used twice (recently due to wedding!) and when I was overdrawn by £600 for a week it cost me a whopping £1.56 in interest.

 

I was perfectly happy with this arrangement.

 

I got a letter today, "Important changes regarding your high interest account". They are changing three things;

 

We’re making some important changes to your Halifax High Interest Current Account. From 6th December 2009, we're changing the name to Halifax Current Account and we’ll be introducing new overdraft fees that are simple and easy to understand.

 

We’ll no longer be charging you debit interest on any overdraft you use or paying you credit interest on the balance in your account.

 

So my high interest account is now becoming a zero interest account! Not only that, their new overdraft fee means you pay £1 a day for everyday you are overdrawn. Nice, so my 50p a month has gone and if I was to go overdrawn again like before then it would now cost me £7!

 

And why?

 

We’ve responded to the OFT's study of Personal Current Accounts and feedback from our customers which showed that many people are confused by overdraft charges. We're introducing clear and easy overdraft fees that’ll be much easier to remember.

 

So because of stupid people who can't use a calculator, everyone is being shafted by higher fees and no credit interest. They've even created a website with a toss-pot in a video making out that he is doing me a favour by making these changes.

 

Alliance & Leicester

 

Anyway, I've been looking for a replacement current account and have seen a few sites recommending the Premier Current Account from Alliance & Leicester. It pays 0.5% interest but they give you £100 just opening the account, plus £25 for every friend you get to also open an account. I'm very tempted to go for it, but thought I'd ask if anyone has had any good or bad experiences with them and this particular type of account?

[ronttuk]

look here this site is good you can compare, http://www.moneysavingexpert.com/banking/

 

ive had an Alliance & Leicester account for 14 yrs never had any problems as such but they wouldnt give me a credit card or any sort of finance ive got 6 credit cards from other banks and i can get aloan tomorrow if i want 1 but Alliance & Leicester wont lend me a penny!!

 

 

always been overdrawn i here u say , nope only ever been overdrawn once for 38p plus the £25 they carged me for going overdrawn and it was paid in cash in less than 24hrs,

[michael]

I'm in the same position (but have yet to receive the letter) and think it's pathetic how they are "improving" accounts but potentially costing me more money.

 

I haven't been too impressed with them as a bank for some time now but just haven't had enough motivation to look elsewhere. Oddly enough I got thinking about this last night and did have a quick browse at a comparison site to see what else was around, the Alliance & Leicester offerings did look to be about the same as the current Halifax stuff, First Direct being the other consideration.

 

http://www.moneysupermarket.com/currentaccounts/CurrentAccountsResults.asp

http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

 

Annoyingly the Halifax also ranks quite highly based on the £5 a month they give you for having the account but that £1 a day overdraft is there to bite you in the background. I had a 0% interest overdraft account with the Halifax for about 15 years but that disappeared recently, they also doubled the rate on my Visa card despite me negotiating a lower rate the month before (I don't use it but just thought their rates were high) and are generally annoying me with Howard, it's time to change.

[RedM]

I've been with the A&L since 1995 and I can't say that I've had any issues with them. I think I have the account you are looking at. I also have a loan with them that was easy to arrange and they have an adequate website and pretty good phone banking dept. based in Leeds and Liverpool.

 

They will be part of Santander next year so I'm hoping for some passes to the Grand Prix care of McClaren!

[mawby]

The other advantage of the A&L account if the overdraft rate is only 50p a day, but it capped at £5, so if you were unlucky enough to have to use your overdraft for an entire month it wouldn't cost you £28-£31 like the Halifax one would.

 

I suppose the clever thing to do would be to change my Halifax account to the one where you get £5 a month if you pay in over £1000 a month, then setup a standing order to move this straight into the A&L account so they get the +£1000 a month they want. That would also work out good for me as my nearest Halifax branch is less than a mile away (for paying in cheques) but the nearest A&L is about 30-45 minutes drive.

 

So then Michael, are you going to recommend me or shall I recommend you for an extra £25 each?

[AlanM]

I also received this letter from the Halifax. Really annoyed that they make out it is a change in my favour - certainly isn't. If I decide to go with A& L will get one of you to recommend me ,, lol

[stevie_b]

I've been with A&L for several years. No problems here. I think new customers to A&L get some kind of sweetener (£100 is it?).

 

PS I'm happy to "recommend" forum members to A&L. We both get £25 for doing so. PM me if interested.

 

I wouldn't regard it as a serious money website, but this may be worth a look: http://www.lovemoney.com/news/current-accounts/make-200-switching-your-current-account-3892.aspx

[mkirby]

Yeh we got our letter yesterday and sometimes we are 2-3k into our overdraft so that means it will go from charging us £15-20 ish pounds to £30-60 pounds a month

 

Me thinks another bank!!

[michael]

So then Michael, are you going to recommend me or shall I recommend you for an extra £25 each?

 

I still need to read up on a few things and probably go in and chat some people, I'm not very good at making decisions unless I study things for a while.

 

I like your plan with retaining the account and shifting the cash over to the A&L though.

 

Get yourself sorted and then I'm happy to be recommended by anyone and everyone if the A&L seems like the best deal for me.

[mawby]

I wouldn't regard it as a serious money website, but this may be worth a look: http://www.lovemoney.com/news/current-accounts/make-200-switching-your-current-account-3892.aspx

Some of the comments don't sound too good.

[stevie_b]

Some of the comments don't sound too good.

 

Yes, I'd forgotten about them! I can't comment on the switching service as I've never used it, but the phone lines are manned by UK-based (or so it sounds) staff who are in my experience helpful.

 

Their website also seems fit-for-purpose. I have no problems using it.

 

They seem to be cutting back on physical bank counters at their branches (cheaper to push people onto telephone or internet banking I guess), but I don't mind that.

 

From what I read A&L seem fine as long as 1) you keep a very close eye on their switching service, and 2) you don't need to do anything too out of the ordinary. I don't know what would qualify as out of the ordinary, as I use them to shuffle money around, change DD details etc and I've never had problems. I've cancelled cheques with them occasionally, and I don't think they charge for that.

 

You pays your money and you takes your choice, I guess.

[Ark]

On the Halifax shenanigans, what do you expect of a bank that collapsed? I'd be running away with armfuls of my money. Actually, I did do that.

[mawby]

I've taken the gamble. stevie_b recommended me (so that should be £25 for each of us) and to qualify for the £100 new customer bonus I only need to transfer over my direct debits and standing orders, so I've left my salary going into the Halifax account and will get that changed to the £5/month account this weekend.

 

So if all goes to plan the Halifax taking away my £6/year interest should make me £185 over the next 12 months, plus whatever interest I get from the A&L account.

 

Fingers crossed the switching service goes through fine

[Matt H]

I switched to Alliance and Leister to get the £100 cash back deal, but I totally regretted it and it wasn't worth £100 in my opinion as A&L were rubbish. The Internet banking is shoddy (you can't even find your sort code on there - you have to phone up and go through an automated service to get it!)

 

The 'easy' switching was a nightmare, but I have heard it goes well for some people. The first month my salary went into A&L and my Direct Debits still came out of my Natwest account , anyway.

 

When you wan to speak with somone you have to jump through hoops. Far better to press the '2' button when calling Natwest to speak to someone instead of 52 million options later.

 

I'm now happily back with Natwest - better the devil you know I guess, but I still pocketed the £100

[stevie_b]

I switched to Alliance and Leister to get the £100 cash back deal, but I totally regretted it and it wasn't worth £100 in my opinion as A&L were rubbish. The Internet banking is shoddy (you can't even find your sort code on there - you have to phone up and go through an automated service to get it!)

 

The 'easy' switching was a nightmare, but I have heard it goes well for some people. The first month my salary went into A&L and my Direct Debits still came out of my Natwest account , anyway.

 

When you wan to speak with somone you have to jump through hoops. Far better to press the '2' button when calling Natwest to speak to someone instead of 52 million options later.

 

I'm now happily back with Natwest - better the devil you know I guess, but I still pocketed the £100

 

Hmm, a real mixed bag of A&L experiences from different people. Your sort code is on your cheque book (not on your bank card though). I genuinely find the A&L internet banking and even the telephone banking perfectly adequate. The telephone banking does have one or two levels of "press 1 for..." more than it should have, but I can live with that. Their telephone system is a shining beacon of excellence compared to the internet hosting companies that I've been on the phone to.

[Matt H]

Hmm, a real mixed bag of A&L experiences from different people. Your sort code is on your cheque book (not on your bank card though). I genuinely find the A&L internet banking and even the telephone banking perfectly adequate. The telephone banking does have one or two levels of "press 1 for..." more than it should have, but I can live with that. Their telephone system is a shining beacon of excellence compared to the internet hosting companies that I've been on the phone to.

 

It's the fact that you can get much better. Why isn't my sort code on my account info? Bizzare.

 

Telephone banking is aweful Stevie. With Natwest, you press one button to choice between speaking to a customer services representative or using the automated service.

 

Online banking looks proffesional, not the trash that A&L have. I suppose once you've experianced better then you know what is worse.

 

They also have bugger all branches.

 

I quess the reason why they are offering £100+ to get people in is because no one would do otherwise.

[DaveK]

When you wan to speak with somone you have to jump through hoops. Far better to press the '2' button when calling Natwest to speak to someone instead of 52 million options later.

 

I'm now happily back with Natwest - better the devil you know I guess, but I still pocketed the £100

 

I've considered switching from Natwest a couple of times - once to A&L (years ago), and once to Halifax (earlier this year).

 

I stopped the A&L switch when I found I'd been given incorrect information. I stopped the Halifax one when I found that they wouldn't give me one of the sweeteners their leaflet said I'd get.

 

I eventually concluded that I'd always been perfectly happy with Natwest service so I should stay there. However - I'm now not so sure about that - Natwest annoyed me when I bought my car. They have a limit to what you can transfer to one payee on a single day using the internet - and then charged me £23 to do it at the branch. I was not impressed.

[Matt H]

Natwest annoyed me when I bought my car. They have a limit to what you can transfer to one payee on a single day using the internet - and then charged me £23 to do it at the branch. I was not impressed.

 

What is the daily limit?

[DaveK]

What is the daily limit?

 

£10,000.

 

The (not very) helpful people on the phone told me I could spread the payment over several days. Which is hardly practical when I wanted my car the next day (and the web site doesn't warn you of that). They also told me I wouldn't have to pay when I went into the branch - which was clearly not true.

[Matt H]

£10,000.

 

The (not very) helpful people on the phone told me I could spread the payment over several days. Which is hardly practical when I wanted my car the next day (and the web site doesn't warn you of that). They also told me I wouldn't have to pay when I went into the branch - which was clearly not true.

 

That's quite high still. Used cars are usually paid for with cash or bankers drafts.

 

I'd be upset about having to pay though.

[snake]

£10,000.

 

The (not very) helpful people on the phone told me I could spread the payment over several days. Which is hardly practical when I wanted my car the next day (and the web site doesn't warn you of that). They also told me I wouldn't have to pay when I went into the branch - which was clearly not true.

 

Its (£9,999.99p). if it can be £ucked up Nat west will do it well, but i think they are as good as other banks at £ucking up your bank transactions.

[mawby]

Just to update;

 

The switching service went through without any problems. I got the £100 credited to my account after only 3 weeks of it being opened.

 

Having said that, I haven't received the £25 recommend a friend bonus. Have you stevie_b?

 

I understand what people mean about the web interface. Having used it a bit it does seem like a Fisher Price "My first web site" attempt compared to Halifax and Lloyds that I'm use to, but it does work OK.

 

I went for my genius plan of keeping the Halifax account and standing over most of my pay to the A&L one. Although it's only been active for just over a month it does seem to work out nicely. My pay goes into the Halifax account at the end of the month, and on the 1st a standing order moves most of it to my A&L account which arrives the next day. I get the £5 a month 'reward' from the Halifax plus interest paid on the money in my A&L account. It's not going to pay for much but I know but it's considerably more interest than I would have been getting - nothing.

[stevie_b]

Hi mawby,

 

I've just checked my account and I don't think I've got the £25 yet. I'll try to get onto them at the weekend.

[Tannhauser]

It's the fact that you can get much better. Why isn't my sort code on my account info? Bizzare.

 

Telephone banking is aweful Stevie. With Natwest, you press one button to choice between speaking to a customer services representative or using the automated service.

 

Online banking looks proffesional, not the trash that A&L have. I suppose once you've experianced better then you know what is worse.

 

Yes, I would second all of that. I closed my account with them a few months after I opened it.

 

Also:

 

At the time I opened it, they were advertising staggering-looking interest rates in what I thought was a deliberately obfuscational, even disingenuous, fashion. It was something like this: headline was 12% pa interest on your savings for 'regular savers'. However, it only lasted for 12 months from the first payment. That meant that only the first month's saving earned 12%, whereas the last few month's savings earned very little.

[mawby]

Hi mawby,

 

I've just checked my account and I don't think I've got the £25 yet. I'll try to get onto them at the weekend.