ING reward 6% rate

codetown

The convenience is all depending on the circumstances.
For those using only internet savings with easy access (and no penalties) I think it is convenient. It took me less than 3 minutes to move some money to ING. I will have a loss of interest on that money for exactly 2 days but the additional interest gain will be certainly worth for my effort.

I am not changing any standing orders of course. iThis offer is only worth for lump sums of money, not for regular transfers.

In June I will spend another 3 minutes to do a transfer back to source unless ING raises their interest in the meantime (maybe this is also a way for them to test how much demand there is for higher interest rates without having to put the rates back after a few days for oversubscriptions...).

The good thing of ING is that the access is relatively easy and they do not put penalties on the day you withdraw (as HSBC or FD do).

lipidicman

Codetown, care to share your figures with us? (not your savings (give a gain per £1k), but the loss of interest for four days (there and back) and the gain in interest of 1% for a couple of months. I would have a stab but I dont want to make assumptions about your process)

codetown

Source was Nationwide were the money was at 4.55% (was there for security spreading, but ing is also good for this reason). So in my case the differential is 1.45% gross.

I leave the detailed calculations to you if interested. In my mind I am guessing (based on previous experience for different transfers) that I will recover the loss of interest in ~15 days and the rest is all gain.

charlie12

Hmm.

So they are rewarding existing customers who haven't been loyal and moved their funds elsewhere. I have a balance at ING but due to my loyalty (haven't bothered to move TBH) I won't be getting the special rate on my current balance, even if I move the funds out and back in again. My brother has an ING account with a zero balance but he's in a higher tax bracket so it wouldn't be worth moving my funds to it.

I'll stick to ING for now but will most likely move when (if?) the rates increase later this year.

Zwicky

Paul_Herring wrote:

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.
.

Just to be clear. Paul's first post did not allow for the interest loss when taking the funds out of Ing and back too ICICI. (see posts 30 and 31)

Lets be generous and allow 7days in and 7 days out. The Ing calculation becomes becomes:

64/365*6%*£1000*80%= £8.41

This 28p per 1000 less than paul's figure of 78 days with ICIC at 5.03% gross.

In other words if it takes you 14 days or more to make the transfer in and out the result is a LOSS. And each day that goes by before you actually make the move the situation gets worse because the 6 % period gets shorter.

Frankly it seems to me that this deal will work for very few people. Codetown is the exception because he can apparently make the transfer in and out in 4 days.

This promotion is clearly aimed at savers with Cahoot and other banks paying around 4.5% in the hope that customers will be grabbed by the headline 6% without taking into account the days of lost interest.

codetown

I think it is Icici the exception. Normally all instant saving accounts take between 2 and 3 days to have funds available.
When you have your the current account associated in the same institution as the saving account the transfer is instant (this is true for Nationwide, HSBC, A&L etc). All saving accounts I refer to are the ones online so you can litterally do the transfer on a Monday morning from savings to c/c and then immediately to ING where it will appear 2 days later. So it is 2 days loss of interest in and two days out. Very convenient also and specially when you really need the money.

I heard about ICICI long processing, but I have no direct experience with them. Too scary stories around to even test them!

mary

Thanks everyone. I read the initial post on Monday morning, decided to clear out Cahoot on Monday, lost 2 days interest only I believe, as this morning I can now see the lump sum sitting in the Ing account. Obviously it pays to scour the sites on a Monday morning to see what bargains there are around.

Zwicky

Quote:I think it is Icici the exception. Quote

I disagree. Must of the users of this site (including me) are rate tarts so we usually have savings accounts with banks other than the bank where our current account is located and this means that for the majority of those savings accounts (Cahoot being an exception) we have to transfer first to our current account and then to the target savings account.

You are fortunate in having your savings in the same bank as your current account but then at 4.55% you were not getting the best market rate available. When you transfer out of Ing where will you put your funds? At present rates you could, for example get a better rate (4.95%) at Birmingham Midshires with a bonus guaranteed for 12 months but you will incur a double transfer delay from Ing to NW and then from NW to BM. Even if the position changes the best rate will probably not be at NW so a double transfer delay will be incurred. I can understand that you may prefer the stability of NW rates even though they are not always the highest but that is not what most of us do.


Quote: All saving accounts I refer to are the ones online so you can litterally do the transfer on a Monday morning from savings to c/c and then immediately to ING where it will appear 2 days later. So it is 2 days loss of interest in and two days out. Very convenient also and specially when you really need the money. Quote


I think you have been very lucky with your experience of transfer delays. Try looking at the delays experienced by other people in other threads. All banks that I have any experience of state BACS transfers take at least 3 days and they usually do. Some are worse. Here is Cahoots T&C for example:

3.2 Withdrawals
a. You may make withdrawals by transfers to another cahoot account or by BACS transfer to an external account. Where the money is sent to an external account it will take at least 4 working days to arrive.

All my Cahoot transfers have indeed taken 4 days. For this reason I always use CHAPS for large transfers but not all banks allow this (ING does not).

Stompa

Zwicky wrote:

Lets be generous and allow 7days in and 7 days out.

But with Cahoot you can do 3 days in and 3 days out.

lisyloo

But with Cahoot you can do 3 days in and 3 days out.

I believe it's 4 WORKING DAYS.

So if you do it over a weekend then it will be 6 days of interest or 7 days of interest if you do it over a bank holiday.

We careful to distinguish WORKING days and days of interest and don't forget bank holidays.