ING reward 6% rate

edda

Dagobert wrote:

Is there a daily limit for transfers out of the account?

According to the Ts&Cs I have:

You may make withdrawals of any amount from £1 uo to the available balance

KTF

Dagobert wrote:

Quote from ING's flyer:

This sounds like a winner to me! I have just opened an account with a £1 cheque (and a £10 bung) so I might as well empty the account into my Cahoot one then transfer everything from Cahoot into ING so it gets the full 6% for as long as I leave it in there (unless they lower the rate).

Paul_Herring

Prudent wrote:

Maths isn't my strong point
If I move £27,000 from Cahoot (at 4.55%) to ING for that time how much will I gain in interest?
I have had a really busy time and still havn't moved the money from my Cahoot account. I only have about £68 in ING just now - simply becuase I didn't find time to close it! On holiday next week so promised myself I would sort ING and Cahoot accounts.

1/8/6 - 19/5/6 = 74 days.

Assumption: You get your skates on and start today.
Assumption: 10 days transfer penalty in and out. (Do you have Cahoot registered with ING? This will reduce this delay to your benefit to around 6 days)
Assumption: You're a basic rate (20%) tax payer
Assumption: Compounding ignored.

ING:
74-10 = 64 days at 6% gross PA = 64/365*6%*£27000*80% = £227.25

Cahoot:
74 days at 4.46% gross (4.55%AER) = 74/365*4.46%*£27000*80% = £195.31

On your £27,000 you may gain an extra £31.94 if you move it to ING[1]


[1] You'll gain an extra 91p for every day less than 10 days it'll take to transfer the money.

Paul_Herring

Dagobert wrote:

My understanding is that only a cheque-book account can be linked to the ING savings account, which the Coventry First isn't. So, I wouldn't be able to transfer the money back directly to the Coventry First?

If they don't supply a cheque book, you cannot transfer direct from ING to Coventry, but you can (or should be able to) transfer direct from Coventry to ING.

However... From http://www.coventrybuildingsociety.co.uk/coventryfirst/howitworks.aspx I notice they have, amongst other offerings:

A cheque service for those occasions when you need one.

Perhaps you could shift your money to ING and use the intervening 7 weeks to find out how to use this service to link your Coventry account to ING

(That said, it may not be worth your while. On Coventry's 4.98% gross, and assuming 6 days transfer delays, you may get an extra ~£0.87 per £1000 you transfer with ING - see my previous posts for examples of how to calculate this)

KTF

But isnt the 6% applied to everything that is transfered in during the bonus period for as long as it stays there? i.e. even after the end of August when the promotion finishes?

Dagobert

Paul_Herring wrote:

A cheque service for those occasions when you need one.

You can order a cheque over the phone, tell them who to make it payable to, and they send it out to you!
To comply with ING's T&Cs, the cheque will have to be in your name and drawn on the linked account, and show your ING a/c no on the front.

martyn4764

martyn4764 wrote:

We currently have £85,000 in a Cahoot Savings Account (paying the bonus rate until 28th June, ie 4.93% monthly interest).
Are we going to gain much by moving this into our ING account? And if so, is it better to transfer the money now, or wait until Cahoot drops to the standard 4.55% on 29th June?

We receive the interest gross in each case, we're not tax-payers, and the ING linked account is a current account.

So can someone (Paul_Herring?) confirm I'm getting this right...

If we move the money now:
ING=74-6=68... 68/365*6%*85000=£950
Cahoot... 74/365*4.93%*85000=849

If we wait until 29th June:
ING=34-6=28...28/365*6%*85000=391
Cahoot=34/365*4.46%*85000=353

So our best bet is to transfer the money on Monday morning??

Be grateful for confirmation.

Martyn

mary

Yes, I did the same thing, last Monday, with as good as the same amount £84,655.34
Ing 74/365 x 6% x 84655 x 80% = 823.81
Cahoot 78/365 x 4.75% x 84655 x 80% = 687.43
Profit = 136.38

Yes, do it on Monday, shows up on Thursday

Paul_Herring

KTF wrote:

But isnt the 6% applied to everything that is transfered in during the bonus period for as long as it stays there? i.e. even after the end of August when the promotion finishes?

No. The rate reverts to normal on all amounts at the end of the promotion.

Stompa

KTF wrote:

But isnt the 6% applied to everything that is transfered in during the bonus period for as long as it stays there? i.e. even after the end of August when the promotion finishes?

I wish that were the case!!!