ING - Drops to 4.5% AER from 1st Jan 2006

YorkshireBoy

As of 1 January 2006 the ING Direct savings rate will be 4.5% AER. We are making this change because of less favourable market conditions.

http://www.ingdirect.co.uk

derrick

YorkshireBoy wrote:

Quote:
As of 1 January 2006 the ING Direct savings rate will be 4.5% AER. We are making this change because of less favourable market conditions.
http://www.ingdirect.co.u http://www.ingdirect.co.uk

So it looks like they are just going to track the BOE rate then!:mad:

HGLTsuperstar

Right so BOE rate cut on the way; ING tend to cut rates ahead of the BOE then make a show about how "we won't be dropping our rates despite the recent BOE cut."

Greycrow

derrick wrote:

So it looks like they are just going to track the BOE rate then!:mad:

Time to change methinks.

derrick

Greycrow wrote:

Time to change methinks.

But to who? I have just opened an account with Derbyshire B S at 5.05% fixed until 31/01/07, so don't need to worry about that chunk for 13½ months.

What is Cahoot offering now, I have a savings account with them opened last year at the good rates, still paying me 5.3% for 1st £50k then 4.8% up to £249k. think I might add to that account if I can at the same rates.

al_yrpal

Ing Direct are becoming notorious for slightly dodgy practices in fair advertising of interest rates, despite the hype. They made swingeing cuts after the honeymoon, and this is the second time they have cut rates in advance of an expected BOE cut. You have to keep your money in there for a year to equal Nationwide's Interest rates, which is why they are no longer best buy. Not to mention the delay, and loss of interest when you move your money (especially over weekends).

deemy2004

its not clear cut that the next move in interests will be down... needs more inflation stats , perhaps if the cpi nudges back below 2% the chances of a cut will be good. BUt until then its not certain

Stonk

Agreed - it is not in the slightest bit clear that a base rate change is coming soon, and if it does, it might not be a cut!

This is ING positioning to make a bit more money, plain and simple. When they say "less favourable market conditions", read "we aren't making as much money as we would like". They could stomach less profitability in exchange for customer share, up to a point, but it could not go on like that for ever.

Greycrow

derrick wrote:

But to who? I have just opened an account with Derbyshire B S at 5.05% fixed until 31/01/07, so don't need to worry about that chunk for 13½ months.

What is Cahoot offering now, I have a savings account with them opened last year at the good rates, still paying me 5.3% for 1st £50k then 4.8% up to £249k. think I might add to that account if I can at the same rates.

A&L On-Line Saver doesn't look too bad either with 5.15% up to 30/06/2006, though max. is £25000.
The beauty of ING was one competative rate with few conditions, but that rate is starting to loose alot of it's original charm. At 4.5% it's time to go shopping.

hansi

Apart from A&L, who else is giving the best easy access deal?

Juni_3

Surely though if you move money around between whoever is offering the best short term rate the amount of interest you lose for the period it takes to move it is more than you're gaining?

For instance it would take me 7 months of interest differential at 5.15 to recover 1 months lost interest at 4.5.

I've never yet been able to move from one account to another without losing what amounts to a months interest.