KE Transfers to ING

MumofThree

Hi I posted this on the long running KE transfers thread but then realised it might be better to start a new one.

I have just received my letter from ING about the transfer and they are giving me two options:

1.) A bonus rate for 6 months which is a fixed bonus of 2.02% on their variable rate of 1.98% (2% AER) giving a current rate of 4.0% gross pa (no doubt until any base rate change)

If you accept this you give up the KE guarantee of BoE base rate plus 0.3%

2.) Continue to recive the guarantee until 2012 and get a current rate of 2%AER

You have until 9th March to accept option 1 or it defaults to option 2.

I assume this the same for everyone?

They also are honouring any KE fixed rates (the only reason why I still have money with them!)

Baldur

I completely emptied my Edge savings account as soon as possible when ING took over and transferred the funds into my Egg fixed rate savings at 6.3%, so only have two fixed term deposits left with KE/ING, which mature within the next couple of months.

atypical

I guess most people are going to be taking option 1?

Davesnave

Ing are treating me as an 'old' customer by sending me the details described above, but I closed my KE account ages ago.

I might prefer to be a 'new' customer, as their savings account is paying a 12 month bonus of 1.46% to newbies. Apparently, they can't make a decision whether I'm old or new till next week.

Even with £50k, it's not something to get excited about though!

edda

atypical wrote: »

I guess most people are going to be taking option 1?

Apart from those of us who abhor ING, will be taking the remaining pennies out and closing the account asap

Geoffo_M

Yes, I received that letter this morning. I can't see what they are up to. 4% is a good rate, but only for 6 months. Is it worth the bother. But for some reason, this is the carrot dangled to tempt us to give up the variable + 0.3% guaranteed til 2012. This isn't very good at all - so why do they want us to give it up? Or am I missing something?

castle96

assume they are writing to all old KE customers, even if they have NIL £ in there (as me)
Waiting for the pin No - maybe they think I DO still have money with them ! (hoping)

Essenchill

Davesnave wrote: »

but I closed my KE account ages ago.

Closed it or just emptied it?

Davesnave

Essenchill wrote: »

Closed it or just emptied it?

Closed. Definitely. But there was about £50k in it at one point, so maybe it's a case of: 'because you're worth it.':rotfl:

Richchad

I too have a fixed account with KE and a nominal £1 in the Easy Access Account.

The KE website is showing the Easy Access Account interest rate as 3.55% AER, so is it going to change to Option 1 - 4% including bonus for 6 months (3.03% AER and variable)

or Option 2 - down to 2% with a minimum of 1.3% (following yesterdays rate drop)

Both these rates are likely to fall following yesterdays rate drop.

So they aren't keeping the KE Easy Access Account interest rate then..?

Baldur

Richchad wrote: »

So they aren't keeping the KE Easy Access Account interest rate then..?

They aren't contractually obliged to, whereas they are obliged to maintain the rate of the fixed term accounts under the FSCS provisions.