Should i pull out of KE?

Birdie100

Well now the question becomes will ING Direct default? I suspect it probably won't - now if I were you I'd be opening a 12 month 7.15% bond deal, particularly since interest rates have been cut by .5% today...

Megalomaniac

Leave £1 - that's the official minimum balance. £100 is the minimum to earn the high rate of interest.

rhodders77

I suspect like many, I took all my money out of KE yesterday. I'm not concerned about the long term security, since the FSCS scheme or a government bail out would have covered that, but what did concern me was access being restricted as in the case of Icesave. It really depends on your personal circumstances - if you can live with the money potentially being tied up for 3-4+ months should the worst happen, feel free to stick with it for the extra few percentage points interest. On the other hand if you want peace of mind and instant access to your savings (that's what the account is supposed to be), I'd bail out. I had about £7k in there but some of it is earmarked for October holidays and Christmas shopping so I need to get my paws on it when I choose. It took me about two minutes to apply for another similar account with a UK bank (Birmingham Midshires) whose interest rate is only 0.03% lower - bit of a no brainer for me really. Now all I need is for the withdrawl to appear in my linked account and I'll rest easy.

nzseries1

Birdie100 wrote: »

Well now the question becomes will ING Direct default?

Unfortunately, I consulted my crystall ball, and then I consulted my magic 8-ball, and I got two different answers

mobfant

I moved my money out yesterday. If I didn't have money in Icesave as well, I'd move it straight back in again as the Netherlands and ING are in a completely different situation to Icesave and Iceland. But while I don't know how long it'll take to get Icesave money back, I need to have guaranteed access to savings so will put them in a lower but safer account.

MadSage

Birdie100 wrote: »

Well now the question becomes will ING Direct default? I suspect it probably won't - now if I were you I'd be opening a 12 month 7.15% bond deal, particularly since interest rates have been cut by .5% today...

It's very unlikely to default considering their ratings right now. Also their share prices are on the rise. I'm still not sure of their current CDS and how it compares to UK banks.

Dan29

MadSage wrote: »

It's very unlikely to default considering their ratings right now. Also their share prices are on the rise. I'm still not sure of their current CDS and how it compares to UK banks.

See http://forums.moneysavingexpert.com/showpost.html?p=14810947&postcount=66

MadSage

Thanks Dan! I missed that among all the chaos.

altocumulus

Fingers burnt with Icesave; I didn't have a lot in KE by contrast - but for safety's sake - actioned it all out - I'm not happy with ING taking over - despite the Netherland's compensation scheme....

BallandChain

crazydad wrote: »

due to recent events i'm bumping my initial question, Should i pull out of KE?

getting a bit worried now.

cheers

It's too late now as it seems Kaupthing have gone into administration. Check out this thread:

http://forums.moneysavingexpert.com/showthread.html?t=1206669