ING Savings rates - no change after base rate drop?

Caped_Avenger

I have most of my savings outside of ING for reasons that are pretty irrelevant, but i have just noticed that while the bank where most of my savings are have dropped their interest rates after the November 1.5% base rate drop, ING have not changed theirs and i'm mulling over moving most of my (non-ISA) savings to them in the short term to take advantage.

Is this par for the course for ING? Do they normally change their rates within a set time of the base rate change?

Not base-rate related, but do ING pay interest on uncleared funds? I.e. if my Direct Debit was to take money out of my current account on a Monday, would they pay interest from Monday, or when it had "cleared" (i think they class this as the Thursday)?

Thanks in advance.

natman

In my opinion ING are terrible for the interest rates.
They normally offer a decent rate up front then it pitters out into a pathetic figure. I had savings with them and there are many posts recently from people who had savings with KAUPTHING EDGE.
ING took over the savings. My rate at Kaupthing edge was 6.55%, as soon as ING got there mitts on my dosh and the drop in interest rates my new rate of savings is - 4.55%, therefore I have withdrawn my money.

In answer to you second question about cleared money, I dont know, but their website may have an answer or on their FAQ page. Also you could give them a ring to speak to them about specifics.......

napoleon

how can they drop interest rates by 1.5% when they're already practically zero? :rotfl:

Caped_Avenger

napoleon wrote: »

how can they drop interest rates by 1.5% when they're already practically zero? :rotfl:

Thanks. Very helpful.:rolleyes2

The interest rate is currently 4.25% AER. Do you really need me to explain the elementary mathematics to show that they can drop interest rates by 1.5%?

Stompa

Caped_Avenger wrote: »

...but i have just noticed that while the bank where most of my savings are have dropped their interest rates after the November 1.5% base rate drop, ING have not changed theirs...

They have now:

https://www.emoneyfacts.co.uk/news/savings-news.aspx?newsarticleid=178718

JohnAnt

Stompa - that's extremely interesting news, and not entirely unexpected. I was wondering how they were managing to give savers 6% and lend out at 4.84%, with a 500m euro 3rd quarter loss.
Presumably then existing '6%' savers (with the +1.67% guarantee) will now get 4.45% or thereabouts?
And one guesses even less after the December rate cut...

Icesaver

That's me out of ING once my fixed rate matures!

Icesaver

Caped_Avenger wrote: »

Thanks. Very helpful.:rolleyes2

The interest rate is currently 4.25% AER. Do you really need me to explain the elementary mathematics to show that they can drop interest rates by 1.5%?

I think Napoleon was showing sarcasm re ING's pathetic rates :rolleyes:, not intending to be mathematically correct:D

Milarky

Now normally ING gives savers about 1-2 weeks advance notice of changes - eg the rates would change on 1st month but be advised about the 15th of the month before. But they don't have to.. courtesy of the Banking Code.

roddydogs

Yes-but if you had opened an a/c with £1 when the 1.67% bonus for 1 year was offered, you still got a good deal as all the other will soon reduce.

springer50

Just looked on ING website and they have dropped the interest rate on savings to 2.75 AER