Alliance & Leicester reviews savings rates

Following the Bank of England Base Rate increase of 0.25% from 5.25% to 5.50%, Alliance & Leicester is making the following changes to its savings products.

These changes will take effect from Saturday 2 June.

DirectSaver – this account has proved to be extremely popular, and in light of customer feedback, we will be reducing the minimum balance from £5,000 to £1,000 in order to make it more accessible to potential savers. In addition, the interest rate will increase from 5.80% (AER) to a market leading 6.10% (AER).

Direct ISA Issue 3 – we currently offer all new customers a 0.40% bonus,* but due to the popularity of this account we have decided to continue to offer the bonus, which was due to end on 31 May 2007. The rate from 2 June will be 5.65% gross p.a.

The maximum investment limit on our Online Saver accounts will increase to £100,000 from 2 June**. New tiers have been introduced, as per the attached chart, with a new headline rate of 5.50% gross p.a.

PlusSaver – the rate will increase to 5.00% gross p.a. – this new rate comes with a guarantee that it will go no lower than 0.50% under BBR until 31 May 2008.

*Direct ISA Issue 3 Bonus – the bonus applicable from June will be payable until 31 August 2008. The current bonus is payable until 31 May 2008.

**Online Saver (closed issue) current maximum investment limit is £75,000. Online Saver Issue 2 current maximum investment limit is £25,000.