ING reward 6% rate

mary

If you want 6% for a year, then your best bet is to divide your lump sum into 12 0r 24 equal amounts roughly and put it into one of the regular savers, 7%, 8% or 10%. I've just taken the plunge and shifted £80K from Cahoot's Bonus Savings Account, which was due to tumble from its 5.25% (for 6 months) in one weeks' time to 4.75% anyway for me and have transferred it to Ing. You never know in 2 1/2 months time, or sooner, there may be something equally attractive or better round the corner.

Milarky

lipidicman wrote:

So if you have a low balance and you bung in a lump sum you get six percent on that lump sum for what, two and a half months. Then in August it is back to 4.5%? I was hoping for six percent on that lump sum for at least a year

lipidman! It's a 'free gifthorse' even if it is only 2 1/2 months ! That's not the attitude...

It has crossed my mind that there is nothing to prevent collusion between relatives who hold different ING accounts to have the highest balance drawn down by one and added to the other (They could split the 1.5%) and then returned to the first account holder after August.

(BOE may put up rates in August anyway, by that time the picture on rates may look rosier generally)

lipidicman

Oh I know Milarky.

Mary, I have regular savers anyway.

Now transferring could be a problem. First I have to get this money into the correct current account (5 days) then onto ING (5 more?). Also as I haven't logged in for over a year I made a mistake and they have locked me out after a single attempt!

mary

Don't know who you are with - I thought that might be a problem, especially with a large amount I checked with them, the amount is not a problem and luckily you can go straight from Cahoot to Ing as a one off.

Paul_Herring

For those thinking of moving from ICICI to ING for the period:

1/8/6 - 15/5/6 = 78 days.

For each £1000:
Assumption: You get your skates on and start today.
Assumption: 10 days transfer penalty (From ICICI to Linked to ING)
Assumption: Basic rate (20%) tax payer
Assumption: Any interest earned on the way though current account ignored.
Assumption: Compounding on the ICICI account ignored.

ING:
68 days at 6% gross PA = 68/365*6%*£1000*80% = £8.92


ICICI:
78 days at 5.03% gross (5.15%AER) = 78/365*5.03%*£1000*80% = £8.59

A difference of (around) 33 pence per £1000 moved.

I have ~£25,000 in ICICI - I'm not convinced that £8.25 is worth the hassle of moving money for me personally.

lipidicman

lipidicman wrote:

So if you have a low balance and you bung in a lump sum you get six percent on that lump sum for what, two and a half months. Then in August it is back to 4.5%? I was hoping for six percent on that lump sum for at least a year

Paul, that was the point I was making above. I should have been more clear and said 'You get an extra one percent for two and a half months'. Common sense told me this wasn't worth very much so i didn't bother to do the calculation but it is nice to see the figures! Thanks

lisyloo

For those thinking of moving from ICICI to ING for the period

But the calculations would be different for someone moving from say Cahoot i.e. an account where you can pay directly.
It should be 3 or 4 days and not 10 in that case.

I'm not saying it's worth it, depends on how much you have I guess.

Paul_Herring

lisyloo wrote:

But the calculations would be different for someone moving from say Cahoot i.e. an account where you can pay directly.
It should be 3 or 4 days and not 10 in that case.

Indeed - that's why I showed my working. For those that want a quick answer:

1/8/6 - 15/5/6 = 78 days.
For each £1000:
Assumption: You get your skates on and start today.
Assumption: 4 days transfer penalty (From Cahoot to ING)
Assumption: Basic rate (20%) tax payer
Assumption: Compounding ignored.


From http://cahoot.com/cahoot_products/cahoot_savings/savings_account.html interest accrues at 4.46% gross, (4.55% AER):

74 days at 4.46% gross PA = 74/365*4.46%*£1000*80% = £7.23

A difference of £1.69 per £1000 moved - If that were the case for me, I'd be more likely to move the money (£42.25 over the period) but I'm not with Cahoot

teksat2k

Thanks for the calculations Paul_Herring,
Nice too see I wasn't far off with what I'd worked out myself.
Needed a new home for 93k with Cahoot so this gives me a couple of months at 6% rather than ICICI, where it was going to go today.

Paul_Herring

lipidicman wrote:

I smell a rat

lipidicman wrote:

lipidicman wrote:

So if you have a low balance and you bung in a lump sum you get six percent on that lump sum for what, two and a half months. Then in August it is back to 4.5%? I was hoping for six percent on that lump sum for at least a year

Paul, that was the point I was making above. I should have been more clear and said 'You get an extra one percent for two and a half months'. Common sense told me this wasn't worth very much so i didn't bother to do the calculation but it is nice to see the figures! Thanks

I think you were right the first time with your rat. I rather suspect they've noticed that a substantial number of people with open accounts have only minimal amounts in them (I only have £16.odd in mine - left over interest from when I drew out all my money and one referral bonus) and they're trying to tempt these people back with "apparently high rates," and hoping people won't be doing the sort of calculations I've performed above.

Basically (from my calcs above), unless your money's in a different account with a (say) sub 4.75% interest rate and you have a substantial (>£25K) amount invested in said sub-standard account, I don't think the increase in interest is sufficient to warrant spending time messing about with online banking to move money.

For those in Cahoot, your current rate is 4.46% gross, ING are 6.0% gross for a eleven weeks, falling to 4.41% gross in August. Should you move your money over to ING, I expect ING are thinking that the 0.05% difference in rates will cause you not to bother moving it back to Cahoot.

With this in mind, if I might make a suggestion to those in Cahoot and thinking of transferring to ING - use the next 2 1/2 months opening an ICICI account (5.03% gross - at the moment) and use the time to iron out any kinks you may have with the process. (No doubt you've all seen the dire threads about them ) then consider moving to ICICI in August if they've still got the highest rate.