Kaupthing Easy savings rate cut 4.55% AER

reginald_2

Just received this email

Following the recent Bank of England base rate reductions in October and November, we are writing to advise you of a change to the interest rate on your Kaupthing Edge savings account. Effective from 7 November 2008 the rate on your Easy access savings account will change to 4.55% AER (4.46% gross p.a.).

Just setup withdraw savings from monday and opened Yorkshire Bank 12month Fixed @ 6% if and when funds arrive. Sneaky to inform this late on a friday night.

Baldur

reginald wrote: »

Sneaky to inform this late on a friday night.

The reduced rate was on the website last Friday.

I set up a withdrawal of the remaining pittance in my KE savings account for last Monday, which arrived in my linked account yesterday and it's now in my 6.3% Egg account.

cos69

yep - took out my money as well apart from a nominal amount thsi lunch time. Looks like they are going to track ING rates for now.

hippyju

I have four 12 month fixed rate deposits with KE which are not due to be paid till June next year

Am I better off taking them all out or waiting til the maturity date?
Is it safe enough?
I have about £8k in fixed term.
Thanks, Julie.

Baldur

hippyju wrote: »

I have four 12 month fixed rate deposits with KE which are not due to be paid till June next year

Am I better off taking them all out or waiting til the maturity date?
Is it safe enough?
I have about £8k in fixed term.

Your choice Julie. I have certainly left my two fixed rate accounts with KE, one maturing in March and the other in June.

As the government passed the deposit business of KE to ING effectively in order to compensate depositors, in lieu of the FSCS process, there would be an absolute outcry if they permitted ING to default on existing fixed rate accounts.

roddydogs

Posted more than a week ago! But at least it got sent to investors eventually.
IE reduced their rates on 1/11 (Before the last bank rate cut), and havent sent any e-mails yet, nor Have Coventry BS, or probably others as well,
i suppose its up to us to keep checking.

edda

It was only a matter of time - former ING investors will recognise the pattern.

Roddydogs - once the base rate goes down, I find I have to keep checking all bank / building society websites for up to 6 weeks (or until all relevant rates have been adjusted). Some building societies changes rates on various accounts at different times as well.

I find comparison sites are unreliable when rates alter this quickly - best to do your own detailed homework as a follow up to them.

natman

hippyju wrote: »

I have four 12 month fixed rate deposits with KE which are not due to be paid till June next year

Am I better off taking them all out or waiting til the maturity date?
Is it safe enough?
I have about £8k in fixed term.
Thanks, Julie.

I too like the others on this post have had savings in Kauthping for a while.
I have taken 99.9% money out of my instant access account (6k) and will deposit this is a coventry Build society fix term account (6.25%) 12 months fix and Birmingham Midshire account

I have £2,100 in Kaupthing/ING fix rate deposit, to be honest I am going to keep mine there until it matures, then bring it back to the UK.

Bad times for savers....................

ginvzt

I have received the email today informing about the interest rate cut. It is something between of a joke and an insult:

[FONT=Verdana, Arial, Helvetica, sans-serif]Effective from 7 November 2008 the rate on your Easy access savings account will change to 4.55% AER[/FONT]

So, they are letting me know that my interest rate WILL drop by 2% effective 11 days AGO! Great. I have only a few hundred pounds left with them - still waiting for the interest to be sorted for 'lost' transfers, but I am definitely closing my account in December!

KenTurner_2

Here's my two-pennyworth on the Kaupthing Edge-ING Direct saga:

http://forums.moneysavingexpert.com/showpost.html?p=15965453&postcount=662

ginvzt

KenTurner wrote: »

Here's my two-pennyworth on the Kaupthing Edge-ING Direct saga:

http://forums.moneysavingexpert.com/showpost.html?p=15965453&postcount=662

I send them a nice email back as well...