ING - any views?

meunier

Let's also remember that the Dutch - in terms of their compensation scheme in the Icesave disaster - were first off the mark in getting the compensation to its savers to the European levels. Forms to savers were sent out in the second week after the liquidation occurred on 7th October. The FSCS have/are doing a good job it is true - but credit must be given where credit is due.

JohnAnt

roddydogs - I agree, I was asking about instant access, and ING is as you say potentially the top rate when the dust has settled on the next UK B of E Rate Cut. But safety is also a relevant point. Even if a saver - eventually - gets their 100K euros back from a 'guaranteed' bank, having to wait and chew fingernails and liquidate other funds or assets to pay for monthly outgoings from an instant access account that suddenly stops functioning with no notice, is a royal pain, as those of us with Icesave/Kaupthing experience will witness.
Which is why I am rather concerned that ING has been downgraded from its previously excellent rating, after it posted its first loss on 12 Nov, after it received a capital injection from the Dutch government.
http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=454383&in_page_id=7

"Fitch Ratings has downgraded its outlook for ING Group from 'stable' to 'negative' as of 28 October based on its losses, the deteriorating Dutch economy and its future effect on the group, which is made up of ING Bank and its insurance business. The Bank has also been downgraded due to a predicted fall in full-year results.
As ratings agencies previously argued this is one of Europe's safest banks, it is now difficult to say how unstable ING may actually be."
Moody have also recently (22nd October) downgraded ING and its profitability outlook, because of the deteriorating economic situation in the Benelux generally, and the bank's high operating costs.
http://www.independent.ie/business/stocks-markets/ing-groep-shares-drop-76pc-after-moodys-downgrades-firms-credit-rating-1506056.html

Of course, the downgrading is not severe, just surprising. And there are many UK banks that have also suffered similar downgradings.
But few of them are lending at 4.84% SVR (mortgage rate) and offering 6% on savings, as is ING Direct.

JohnAnt

Whoever looked at the thisismoney link will realise I confused the chronology - many apologies. I should have written:
'Which is why I am rather concerned that ING Groep was downgraded on 28 Oct from its previously excellent rating, a week after it received a capital injection from the Dutch government. The downgrading proceeded on the basis of a projected loss predicted to be 500m euro.
http://www.strategicrisk.co.uk/story.asp?storycode=375059
Subsequently (12 Nov) ING posted a third-quarter loss of 478m, its first loss since 1991, in line with the analysts' prediction.