Alliance and Leicester ISA

By: EconomyWatch   Date: 1 October 2009

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Alliance and Leicester ISA helps an investor save taxes by investing in cash as well as stocks and shares. An investor has a cash limit of £3,600 per tax year, while the remaining £3,600 of the allowance can be invested in stocks and shares. If an investor has high propensity to take risks, it is better to invest the total allowance in stocks and shares Alliance and Leicester Individual Savings Account.

Alliance and Leicester ISA - Options

An Alliance and Leicester ISA offers various options to investors depending upon investor requirements.

Fixed Rate ISA: In this fixed rate Alliance and Leicester ISA, the bank fixes the interest rates to a plan based on the investment period and the amount invested. The company offers a one-year fixed rate plan and a two-year fixed rate plan. It offers higher interest rates for the two-year fixed rate plan. The company pays the interest annually for this plan. Although Alliance and Leicester allows early closures and withdrawals, it charges a penalty.

Direct ISA: Alliance and Leicester offers a bonus interest for at least six months for this ISA plan. You can pay in whenever you want. The company does not charge any penalty for withdrawals and allows transfers from other banks and building societies for this plan. The bank pays interest annually.

Branch ISA: One can save up to £3,600 per tax year in this plan. One can pay a lump sum or pay on a monthly basis. The bank offers instant access to money without any withdrawal charges.

Super Direct ISA: This is an Alliance and Leicester ISA plan that offers preferential interest rates for investors who ensure investing in another investment product for the same or higher amount. If the investment is not made in another product or if the product is canceled by the investor, the company will not offer the preferential interest rate. The company offers variable interest rates for this product. The company does not impose penalty or require notice period for withdrawals.

Alliance and Leicester ISA comes in many sizes and options to meet the requirements of various types of investors. You should choose a plan based on your investment objectives, the time period you want to hold your investments and your propensity to take risks.


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Most Popular in ISA Individual Saving Account

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