ING Savings rates

Scaredy_Cat_3

Very confused now... I opened an ING Direct Savings account on 15th April - using one of the £25 referral codes, so I can't really complain (if I get the money!). However, the link said the rate for the account was 2.75%.

Today 22nd April I received an email from ING saying as of 17th April the rate went down to 0.5%. So, first I'm not too thrilled at them telling me this AFTER the event, and secondly, when I click on the link to the ING website, it still shows the rate as 2.75%.

Maybe I'm being dim, this page below says variable rate 2.75% then in the very next bullet point it says variable rate 0.5% http://www.ingdirect.co.uk/savings/our_savings/about_our_savings/aboutoursavingsaccount.asp

What am I missing here?

agsnu

Read the second half of the first bullet point - the 2.75% rate includes a fixed bonus of 2.22% for the first year.

New account holder rate = variable rate + fixed bonus rate for 1yr = 0.5 + 2.22 = 2.72%

The missing 0.03% is probably due to some rounding somewhere in the figures.

The rate you're actually getting depends on what the fixed bonus rate was when you signed up. If you're saying that you were offered 2.75% when you signed up, when the variable rate was 1%, then that would imply that your fixed bonus rate is ~1.75 meaning your current rate would be 2.25%.

Scaredy_Cat_3

Aah, now I see! Sorry!

skitskut

agsnu wrote: »

The missing 0.03% is probably due to some rounding somewhere in the figures.

It's because (2.22% + 0.5% = 2.72%) is the monthly rate and when compounded each month makes up the 'missing' 0.03% over the year and so is equivalent to 2.75% AER.