ING 5.1% fixed 6-month for existing customers (merged)

teksat2k

Picking up on mk-donald's point, I'm in the process of new account opening to spread the risk around. Looking at ICICI, Citibank Flex Saver (Min 10K) and Birmingham Midshires amongst others.

Apreciar

No, the ICICI rate is better as it is compounded monthly; the ING rate is added at the end of the six month period and so the aer is 5.1 compared to 5.15 at ICICI. Also, should you want to withdraw during the six month period you would lose 90 day interest.

Moggles_2

On 1 Jan 2006, ING cut their variable interest rate by 0.25%, sparking a rash of similar reductions as HBOS and other savings providers followed suit. This trend continues, even though the BOE base rate has remained at 4.5 per cent since August 2005!

In these circumstances, and with inflation now running at 3 per cent, this new fixed rate deal is bound to appeal to some savers.

However, most forecasters think the next BOE base rate change will be up rather than down. IMO, it doesn't make sense to commit savings to a fixed term a/c, when a similar rate is available in a no-strings online a/c like ICICI's HiSAVE or, for balances of £10,000 plus, Citibank's Flexible Saver. For those who can meet the £1000 per month requirement, there's Coventry First as well.

Limes

Moggles wrote:

In these circumstances, and with inflation now running at 3 per cent, this new fixed rate deal is bound to appeal to some savers.

Steady on! if inflation was at 3% I think we'd be seeing more panic in the press about base rate rising in order to compensate for such a huge jump from the current 2.5%. . Next BoE meeting is in 2 weeks, so I guess we'll see. . .

Paul_Herring

Limes wrote:

Steady on! if inflation was at 3% I think we'd be seeing more panic in the press about base rate rising in order to compensate for such a huge jump from the current 2.5%. .

But inflation is running at 3.3%[1] : http://www.statistics.gov.uk/cci/nugget.asp?id=19



[1] Yes it does matter which measure of inflation you're using

Moggles_2

Steady on! if inflation was at 3% I think we'd be seeing more panic in the press about base rate rising in order to compensate ...

... and I've read plenty of comment along those lines in the financial press.

Exactly how the Government selects the 'shopping basket' of goods and services used to measure inflation, is one of the mysteries of the universe.

If my utility bills are anything to go by, inflation's been gathering pace for far longer than is officially admitted!

Anyway the point is, most savers are being dealt a double whammy. Banks & building societies have been steadily slicing the rates paid on their savings accounts and at the same time inflation has risen.

Milarky

MoneyPenny wrote:

Is this a better rate than ICICI bank which offers a gross rate of 5.03% AER 5.15%?

If you have to open an ICICI account and the money (you would use) is in your ING today then you would have to move it anyway. This would involve lost days (at least 4) Thus the miniscule difference in interest is removed by this process. Access to money does count against the ING of course - 90days lost interest - but it makes this clear.

The other point to consider is the likelihood that BOE will move rates up either this week (not long to wait to know!) or in November - during the fixed rate period. ICICI could put up their rates a bit (not guaranteed) which would definitely make it better than ING.

home_alone

I have been a customer with ing for a few years I have about 300K invested with and have stayed with them to this present day. Thats the background here is what I think of ing - The 6% offer has not really benefited me as most of my spare cash is with them anway so all I could muster up was about 10K for this promotion offer period so the £12 interest did not change my lifestyle, wondering who this would benefit as its a customer only offer then it must be the savers who have moved their cash elsewhere keeping a few pounds in their accounts, they would then bring their cash back.

The 5.1 % 6 month no withdrawal offer which I did not get an invite to join was aimed at the savers who would move their cash away at the end of the 6% this is obvious as one starts as the other ends, I was informed by ing that this was the case when I like many others made the phone call do join the 5.1% party.

Both of these schemes (sounds sort of ing ish) are aimed primarily at the savers who have left or thinking of leaving ing and not at the loyal savers like myself who would not have known about the recent offer if I had not belonged to this forum. If this is a glimse of ings future plans and way of doing business then I am moving on and maybe will get notice of future offers like the other defectors.

gary

Moggles_2

Too right, Gary

If savers behave like rate tarts, the banks & building societies have only themselves to blame.

Nothing the savings providers get up to, is designed to encourage customer loyalty, that's for sure!

Cheers
M.

alared

1st where are you going to move to.
2nd there`s nothing to stop you investing X amount in the 5.1% fixed account and moving the rest elsewhere.
3rd there`s no such thing anymore, as loyalty
4th every time you move money you lose so many days interest.

I`ve been with ING from day one but have often shifted money elsewhere leaving only a £1 with them to keep the account open.
When the offers come along I move it back as in the case of the 6% and now the 5.1% fixed.
Birm-Mid have now got an account that guarantees being .25% above the ING rate for the next two years,maybe you should go there.