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

Juni_3

You're comparing apples and pears. The e-saver pays out yearly not monthly, which is useless for me. Also ING don't force you to have a current account with them.

I don't agree that ING are playing dirty tricks as I still can't find an acccount with the same features offering the same interest rate.

al_yrpal

Also ING don't force you to have a current account with them.

You only open the Flex account, you don't have to use it. Martin recommends that anyone who travels abroad gets a Flexaccount for the debit card. Opening the e-saver takes about 30 seconds from there.

Juni, If you are withdrawing the interest every month, start looking for an account that pays 4.65%, because that is what you are currently getting.

Every bank is out to outwit you, especially ING, they do it by stealth though.

cloud_dog

I have to agree, I think some people are confusing smart marketing with dirty tricks. We had exactly the same discussions when ING reduced their rate to 4.75%. ING are one of the few (only?? - don't have accounts with everyone so don't know 100%) companies to actually inform you IN ADVANCE that they are going to reduce their rate, their service is excellent, there speed of transfer is excellent, I find the ability to create psudeo accounts within a single account to be extremely useful and easy.

If ING are no longer a top ranking savings account then move but do not be under any misunderstanding that the other banks are just, if not more so, mercenary than ING. Peolple seem to forget that it was really ING who shook up the savings accounts industry when they came along, so by all means be smart and move (if you wish / need to) but dont be think that others will not reduce rates.

In fact I would argue that the real danger merchants will be those who leave their rates unchanged after a (possible??) rate reduction for a little while and then reduce their rates, as they will have conciously decided to try and suck people in to their 'attractive' rate knowing they are going to reduce it within a very short period of time.

cloud_dog

Juni_3

Not sure what you mean about ING not paying the proper rate. The interest is calculated daily and added to the account monthly.

cloud_dog

Juni

The point about ING appearing to pay a lower rate of interest is because they DO credit interest monthly. Because of this they their interest rate appears as 4.65% but in fact because you benefit from compounding the interest (for each of the months credited interest) the rate is effectively 4.75%.

Just to clarify you are no worse or better off (in this particular case) by interest being credited monthly or annually. There seems to be a misconception that somehow you are worse off by ING crediting the money monthly whereas, in fact, you are no worse off but you have the ability to take/use that interest if you wish. This feature is extrmely useful for people who need/wish to draw out some money as part of their monthly income (so another plus for ING - yes, there are other monthly accounts).

cloud_dog

MoneyMan

I've researched the other instant access accounts available and have decided to remain with ING for the time being.

The two main options are either First Direct at 5.0% AER, this headline figure sounds great but no interest is paid for a whole month if you withdraw funds.

The other account is Cahoot, which pays 4.93% AER. This figure includes an introductory bonus of 0.75% AER for the first 6 months. I stay clear of these accounts, as the long-term interest is no better than ING.

I've also considered that the two accounts above will follow suit and lower their rates so by the time you have swapped accounts (loss of interest) you will be no better off.

ING provide a fantastic website, and excellent customer services.

As other members have pointed out lets see what the New Year brings. I expect there will be some great deals available.

Macce

Unless you opened an account with them over a year ago which had a 1 year introductory rate of 5.65% which has now dropped to 5.3% ! Best savings account I have opened so far.

ivegotabig1

Juni wrote:

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.

good point...ive worked out how much i will get on isa when it comes round nxt april...just 140 quid on three grand ??? !!! unless you have wads & wads of savings 1/4 % differance is nothing..might just buy you a Mchappy meal..

ReportInvestor

MoneyMan wrote:

ING provide a fantastic website, and excellent customer services.

I agree.

Money£acts is still supportive of ING

"...while customers may be disappointed, ING's second reduction matches those that many of its competitors have already undertaken this year. "Only it's doing it at a much later date."

khalid

I was going to open a new account with ING but now I will open a ICICI Hi-SAVE account (5.15% AER) instead.

"We guarantee that the HiSAVE gross interest rate will be at least 0.25% above the Bank of England Base Rate, until 31 December 2007"

http://www.icicibankukpromotions.com/index.html?c_id=icici_uk_001&site_id=42&b_id=14&UserType=F_TL