New to Saving with ING direct

Rabbitx

I opened an account with ING direct in March ready for receiving an inheritance. From memory it was advertised at 2.85%, with 1.49% being the introductory bonus, and the rest being variable. My first letter from them announced an overall reduction to 2.49%, and I received a letter this morning announcing a further reduction to 1.99%. My investment only actually landed in the account yesterday, and I'm seeing a 2.75% offer for new investors being advertised!
Has anyone else been caught out like this.

natman

On a personal level ING do my head in.
They are forever swopping and cutting there rates and introducing new rates.
they have lots of incentives throughout the year, like yours which only last a fix period of time.
Though in their defence, interest rates have dropped recently and lots of banks have adjusted their rates and hopefully soon there should be a levelish playing field with the base rate , more than likley being static for a while.

It may be worth you investigating fix term accounts paying around 4-5%
You have not mentioned how much you have to deposit or if you have opened an ISA, but there are many different options out there, instead of sticking with ING.

I have had a instant saver with ING and an ISA, and have got rid of them both as you have to be really on the ball to keep up with what rate you account actually pays.

Rabbitx

I am new to saving altogether. Could never afford to before. I have deposited an ISA with NatWest, and am in the process of putting 10k with the Ulster Bank. I put 5k with ING because I am out of work and no longer eligible for benefits, so need an easy access savings account. It would be lovely to tie it up into a fixed savings account, or even better a mortgage or pension, but just can't do this.

adambro

Rabbitx wrote: »

I opened an account with ING direct in March ready for receiving an inheritance. From memory it was advertised at 2.85%, with 1.49% being the introductory bonus, and the rest being variable. My first letter from them announced an overall reduction to 2.49%, and I received a letter this morning announcing a further reduction to 1.99%. My investment only actually landed in the account yesterday, and I'm seeing a 2.75% offer for new investors being advertised!
Has anyone else been caught out like this.

I also received a similar letter today and opened my account around the same time when the £20 offer was on. At that point, the rate been offered was 3% AER of which 1.47% was a 12 month bonus. However, the base rate has fallen since then which unsurprisingly has been passed on resulting in the basic rate of 0.5% AER which gives 1.99% AER.

As you note, ING are offering 2.75% AER for new customers. However, whilst it obviously depends on how much you have in the account, anyone who recieved the £20 bonus might actually be better off on their lower rate.

I'm glad to have received the £20 and pretty reasonable interest rates but I think I'll be shifting the majority of my account balance back to the Yorkshire Building Society's Internet Saver which is currently paying a very slightly higher rate and has a few other advantages for me.

Rabbitx

Thanks. I'll take a look at that one.
Have been given a credit card, (my first), in spite of being unemployed, so am learning about about stoozing. Could be £16.00 better off in 6 months time! - Every little helps.

VKay

I am leaving ING as I'm unhappy at the fact that they treat new customers better than old (6 years) in terms of interest rates. I've complained to them about it and i hope others will too!

natman

Rabbitx wrote: »

I am new to saving altogether. Could never afford to before. I have deposited an ISA with NatWest, and am in the process of putting 10k with the Ulster Bank. I put 5k with ING because I am am out of work and no longer eligible for benefits, so need an easy access savings account. It would be lovely to tie it up into a fixed savings account, or even better a mortgage or pension, but just can't do this.

Hi,
heres a link with instant access savings of £5000 -
http://www.moneysupermarket.com/savings/compareresults.aspx?enquiryId=11033759

Yeah ING are up there but so are others.
I have two instant access accounts - in fact i have a few different accounts - Regular savers, ISA's, Fix term bonds, but I have two instant access which i am very happy with -
Bradford and Bingley - e savings 7 at 2.5% really good and easy to use online account
Yorkshire Building society - esaver. at 2.1%, with this you get an ATM cash machine card so in case of sticky moments you can have access to you case quick.


Good luck!!

Rabbitx

Thankyou. I wish I had read those reviews.

MABLE

I was a former Kaupthing customer and my fixed rate savings was taken over ING. I am getting 7.6% for the next 2 years so I will be staying put!

DemiDee

I opened an ING account using Martin's excellent advice re: the free £20. Thankfully, I got in before they closed the loophole, and was pleasantly surprised at how quickly they credited my account, as well as how helpful they are on the phone.

I have taken the £20 out now but haven't closed the account. I've heard there's a set interest rate for the first year. If this is so, why isn't that mentioned in the literature I received today which informs us that interest rates are down again? I'm now unsure where to put my savings, other than my ISA. Was going to use ING but I need to be sure that there is a fixed rate for this first year. Can anyone here advise please?

savetilibleed

DemiDee wrote: »

I have taken the £20 out now but haven't closed the account. I've heard there's a set interest rate for the first year. If this is so, why isn't that mentioned in the literature I received today which informs us that interest rates are down again? I'm now unsure where to put my savings, other than my ISA. Was going to use ING but I need to be sure that there is a fixed rate for this first year. Can anyone here advise please?

There is a fixed bonus for the first year. The letter you got was presumably after the drop of the standard variable rate to 0.5%. So your rate (for the first year) is the *variable rate + the fixed bonus* (whatever that was when you opened the account.

If youu call ING they will tell you what your bonus rate is/was and tell you your *effective rate*. I only wish they would display it on their page when you log in. They are changing their website on 11 May making it easier to navigate. Don't suppose people's individual interest will show though - from what I was told they would have to change everybody's page manually to do that. :rolleyes: