ING reward 6% rate

Zwicky

Stompa wrote:

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

Transfers out take 4 days according to Cahoot and all the transfers I have made by BACS have taken 4 days (see the quote from Cahoot T&C in my previous post).

I also agree with Lisyloos post because it is impossible to avoid weekends if you have to transfer via an intermediate current account that does not pay a real interest rate.
If you transfer out of Cahoot on Monday it will (normally) reach your current account on Thursday so if you then make a BACS transfer to another savings account it will include the weekend and will not reach the account until Monday earliest.
If you have a current account which pays a half decent interest rate there will still probably be a loss of interest due to a lower rate and some current accounts only pay the full interest up to balances of a fairly low level with a much lower rate applying above that so once again you are stuck with more lost interest.

martyn4764

lipidicman wrote:

Careful. The interest on this sum alone might make you a taxpayer if the rates are good

(6% of 85,000 = £5100, personal allowance is £5035)
Shared between two people you should be OK though

Thanks, we always make sure we divide it to stay within the limits.

Stompa

Zwicky wrote:

Transfers out take 4 days according to Cahoot and all the transfers I have made by BACS have taken 4 days (see the quote from Cahoot T&C in my previous post)..

I know that's what it says in the T&C but in my experience it generally happens in 3 days.

Zwicky wrote:

I also agree with Lisyloos post because it is impossible to avoid weekends if you have to transfer via an intermediate current account that does not pay a real interest rate.

Then why go via an intermediate account? You can transfer directly from Cahoot to ING. And if you open a Cahoot current account you can add that account to the ING list of linked accounts and transfer back just as quickly.

martyn4764

martyn4764 wrote:

I wonder if someone better at these things than I am tell me...

We currently have £85,000 in a Cahoot Savings Account (paying the bonus rate until 28th June).
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, and we're not tax-payers.

Sorry to quote myself! Any chance anyone could work this out for me, as I'm getting a terrible headache

By the way, we have a Cahoot current account, so the only transfer is direct from Cahoot->ING.

Very grateful for any help.

Thanks

Martyn

Milarky

I don't have a ICICI account but it does seem to me that you pay for that higher rate in terms of restricted access to funds.

I do have a cahoot savings account and it takes 3 days for payments to reach ING if the payment is sent direct. I also have the current account with cahoot but alas cannot link this to ING due to lack of cheques book and their restriction on three linked accounts - otherwise I would have moved the balance into the 3.75% interest paying bank a/c and waited for ING to uplift it.

The other linked current accounts I was able to call on - but not for such large amounts to move.

But even where other accounts did not link to ING (because they are savings accounts) the facility exists to move money instantly with only two days lost interest. (Don't know why cahoot adds a day, but there you are.)

So I work on the basis of either none, two or at most three days lost interest when transferring to ING. Yes when it come to the end of the reward rate period on 1st August people will be looking to move - and in the first instance will lose two days interest in moving it to their current account and then have to think what to do with it - because ING does not pay money direct to third party accounts. I'd like to think that rates will be a bit higher by then anyway. And I also look forward earnestly to the end of 2007 when same-day transfers are promised - and you can call up and move your money straight away. The worst thing that could happen in that case would be one day of inferior interest as large payments would still have to be requested one day apart.

Stompa

martyn4764 wrote:

Any chance anyone could work this out for me

I think more info is needed. What rate are you getting on your Cahoot account until 29 June?

IIRC the bonus account had a 0.75% bonus for the first 6 months, followed by 0.25% bonus for the next 3 months.

Zwicky

Quote/stompa:I know that's what it says in the T&C but in my experience it generally happens in 3 days.Quote

Well my experience has always been 4 and it is difficult to understand why Cahoot would state "at least 4 days" if they always achieve 3 days.

Quote: Then why go via an intermediate account? You can transfer directly from Cahoot to ING. And if you open a Cahoot current account you can add that account to the ING list of linked accounts and transfer back just as quickly.[/quote]

Why would you want to put it back with Cahoot if they do not offer the best rate? I agree things could change but Cahoot do not offer the best rates at present

My comments were also meant to be general and not specific to Cahoot and Ing. I agree that it would be a good idea to open a current account at Cahoot but many other banks impose conditions on their current accounts such as a minimum monthly credit to the account and although you may be able to achieve this by constantly moving funds between accounts many of us do not want the hassle of doing this. I just don't think it is practicable to have a current account at every savings bank we use.

I forgot to mention Ing will only accept linked accounts that have a cheque book.

martyn4764

Stompa wrote:

I think more info is needed. What rate are you getting on your Cahoot account until 29 June?

Oh, sorry, of course... it's monthly interest, 5.15% gross / 4.94% AER.

Thanks

Martyn

codetown

Zwicky wrote:

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

I tend to spread savings to dimnuish risk, even if that costs a bit on interest. Never put all your eggs in a single basket! Nationwide is also my favourite for normal banking for the courtesy of their staff and their facilities (branches everywhere, cash cards, no penalties on foreign widrawals etc).
So when the differential iinterest gain s low (less or equal to 0.25%) or getting in is long or difficult (as was for Cahoot for me; when they rejected one of my address documents I simply said bye-bye to them), my choice n. 1 is NW.

As far as instant access savings, I tend to like those that do not put too many restrictions and of course that are reputable. Icici had a disastrous start and very bad reputation on dealing with money, so I stayed out. If it improves significantly, I migt have a go in the future.

I think it is too early to think about what to do after ING. Many things will change in the meantime and I tend to reassess the situation only one week before the trasfer is due or when something good comes up on its own (as this offer from ING).

As for the 2 vs 3 vs 4 days: I don't know why some banks take longer.
All my BACS trasfers have always been at destination in 2 days. I tend to do them all on Monday morning or Tuesday morning to be sure and avoid the weekend

lipidicman

I could get my money out of its savings home and into the current account with the same bank pretty quickly. However my DD link with ING is to a current account at a different bank. I dont think I can BACS from the other current account into ING can I?

As somebody else pointed out, this promotion is a pretty big snub for people who have kept their money with ING. I think they should try to have 'one great rate for everyone' as they advertise