Concerned about a Fixed Term Deposit with KE

Venachar

I recently deposited £30,000 in a 3 year Fixed Term Deposit with Kaupthing Edge. It has now been taken over by ING Direct. Are they therefore duty bound to honour this contract? In your experience can they 1) alter the interest rate or, 2) end the contract?

cheekykid

Venachar wrote: »

I recently deposited £30,000 in a 3 year Fixed Term Deposit with Kaupthing Edge. It has now been taken over by ING Direct. Are they therefore duty bound to honour this contract? In your experience can they 1) alter the interest rate or, 2) end the contract?

No idea. It's what am trying to find out.

agsnu

If you read the terms and conditions that you signed up to, which are still available, you will see that it is possible to get out of KE fixed rate deposits (with the proviso that you will forfeit 1% from the interest rate).

cheekykid

agsnu wrote: »

If you read the terms and conditions that you signed up to, which are still available, you will see that it is possible to get out of KE fixed rate deposits (with the proviso that you will forfeit 1% from the interest rate).

The problem is you can't get out of it. Many have requested it and nothing has been done. I have 100k locked

Venachar

Yes, I know there is a "get-out" clause with what they call a break rate of 1% less, but my question was about what you think they (ING Direct) will do with a recently started Term Deposit, set to run for 3 years, and at an interest rate higher than any they currently offer.

tom188

Nothing will change.

Fixed rate means what it says, they wont be able to change the rate.

Venachar

Thanks Tom 188. So do you think that under the terms of the takeover they (ING Direct) are legally obliged to honour the term and interest rate until maturity and can't end the contract?

Happychappy

Venachar

I also have £35k on a one year fixed rate, I spoke to Ing yesterday and was told by them that they would honour the terms and interest rate of the bond which matures in June 2009.

I have left mine running and see no reason to withdraw or alter it.

cos69

Venachar wrote: »

Thanks Tom 188. So do you think that under the terms of the takeover they (ING Direct) are legally obliged to honour the term and interest rate until maturity and can't end the contract?

I am in a similar position

As far as I can see ING bought the KE business as a going concern, that should not change the contract terms that existed between KE and its customers. However, the message on the KE website says " ... UK Treasury has taken action to protect your savings, transferring all individuals' savings balances from Kaupthing Edge to ING Direct ... " Those look like weasel words to me to get round their contractual obligations, especially since they do not say they will honour exisitng arrangements.

I think its wait and see, they have probably not made a decision on this yet - if they do change the terms to their advantage, then I am sure they know we will all be moving our money elsewhere in disgust.

elbe

hi all I started a new thread re the above, it's gooooood news, have a look

mjmal51

elbe wrote: »

hi all I started a new thread re the above, it's gooooood news, have a look

Why start a new thread on the same subject?