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ING drop special rate on tsfrs from KE
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Geoffo_M
Posts: 1,161 Forumite
In February, I accepted the special transfer rate from KE of 3.51% - of which 2.02% was the special guarantee. Now I have just received email from ING saying they are dropping this rate:-
[FONT=Verdana, Arial, Helvetica, sans-serif]For your savings account, recently transferred from Kaupthing Edge, the rate will be 2.02% AER (3.02% gross p.a. variable for 6 months. This includes a 2.02% gross p.a. fixed bonus). Please note that after 6 months, the interest rate will revert to our standard ING Direct Savings Account rate, currently 1% AER variable (1.00% gross p.a.). [/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]The changes to your rate will be effective from 16 March 2009[/FONT]
It says the new rate is 2.02% aer - 3.02% gross. I'm confused. Am I now receiving 2.02% or 3.02%? Surely they haven't dropped it by 1.5%!
[FONT=Verdana, Arial, Helvetica, sans-serif]For your savings account, recently transferred from Kaupthing Edge, the rate will be 2.02% AER (3.02% gross p.a. variable for 6 months. This includes a 2.02% gross p.a. fixed bonus). Please note that after 6 months, the interest rate will revert to our standard ING Direct Savings Account rate, currently 1% AER variable (1.00% gross p.a.). [/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]The changes to your rate will be effective from 16 March 2009[/FONT]
It says the new rate is 2.02% aer - 3.02% gross. I'm confused. Am I now receiving 2.02% or 3.02%? Surely they haven't dropped it by 1.5%!
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That e-mail was awful - I received it this morning as well.
Your rate is 3.02% gross until the 6th August (1% plus the 2.02% bonus) when the bonus will cease and the rate will drop to 1% gross. They legally have to quote an AER which is 2.02% over the 12 month period.
I hope ING realise that huge numbers of ex KE investors will close their accounts in August - the 'deal' we got is worse that their standard introductory offering, a slighty higher rate but for half as long fools nobody!
PurpleBox.0 -
Not received the email yet, but they are just responding to the last BoE 0.5% drop.
because you only get the 2% bonus for 6 months, then averaged over the year, its only equivalent to half that or 1%. Thats what aer stands for;"How could I have been so mistaken as to trust the experts" - John F Kennedy 19620 -
Mine was moved as soon as ING, with whom I have had accounts in the past (several years ago, before they started paying farcical rates), became involved - it's currently earning 6.3% in my Egg savings account until October.I hope ING realise that huge numbers of ex KE investors will close their accounts in August0 -
I presume that they are just dropping the rate from 3.51% by 0.49% to 3.02% (1% basic plus 2.02% bonus), in line with the Base Rate drop of 0.5%.
I now see what you mean about the bonus' AER (which is what you use to compare accounts) being just really half the 2.02% quoted, as it is only over 6 months.
Sneaky, but then again, what else do you expect from a bank?
I agree that the wording is so bad, it almost makes you wonder if it was intended to be misleading. I worked on enough of those when I was at BT.
I have sorted out my current account, and will now have to sort my savings accounts. The only problem is that, my personal circumstances dictate that I don't want to have too much, if any, of my money tied up.The acquisition of wealth is no longer the driving force in my life.
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Stephen_Leak wrote: »I presume that they are just dropping the rate from 3.51% by 0.49% to 3.02% (1% basic plus 2.02% bonus), in line with the Base Rate drop of 0.5%.
I now see what you mean about the bonus' AER (which is what you use to compare accounts) being just really half the 2.02% quoted, as it is only over 6 months.
Sneaky, but then again, what else do you expect from a bank?
I agree that the wording is so bad, it almost makes you wonder if it was intended to be misleading. I worked on enough of those when I was at BT.
I have sorted out my current account, and will now have to sort my savings accounts. The only problem is that, my personal circumstances dictate that I don't want to have too much, if any, of my money tied up.
I think I read it now the same as you i.e. 3.02% for 6 months. What is misleading is that their opening sentence states that the savings rate is 2.02% - but I don't think they mean that. It is very badly worded, as you say0 -
ING are also sending me loads and loads of spam. Can't wait to ditch 'em once the 6 months is up.0
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..22 days later. I'm digging the £25 referral bonus.0
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