ING increases rate to 5%

lisyloo

Yeah but its backfired, as many of us have now defected.

I doubt that (although I can't back it up with figures).

The vast majority of the population are not money savers and a lot of people will simply leave their money and not move it.
There is a word for it and I think it's "inertia".

It means that banks can open accounts that look good to attract people and then slowly make them less competitive.

It will only be the moneysavers that notice and the vast majority of the population won't notice.

We should be glad really because it the reason that moneysavers can get great deals.

It's also the reasons that banks and insurance companies do not treat their loyal customers well (they don't have to). They offer better deals to attract new customers.

System

The vast majority of the population are not money savers and a lot of people will simply leave their money and not move it.

I agree with you there, part of me thinks leave a bit in there and the other part of me tells me to move the lot out.

lisyloo

I have kept a few pennies in ING because I think that Cahoot may not be as competitive after a year so I'm keeping my options open.
If the account is still open then it's very easy to transfer your money back if you want to.

Milarky

I agree with you there, part of me thinks leave a bit in there and the other part of me tells me to move the lot out.

Depending on your level of savings, it is prudential, to spread cash holding among several providers. Remember that only the first £2000 of deposit is covered in full, and 90% of the next £33000 [have I got those figures right?] and nothing over £35000. If you had £50000 (say) would you put it all with cahoot?

lisyloo

If you had £50000 (say) would you put it all with cahoot?

Yes I would, because I have a joint account and the figures you are quoting are PER PERSON.

Anyone with more than £50,000K in cash per individual should consider whether that is the best investment strategy in my opinion (it may be for some people but in most cases they might need to consider diversifying).

lisyloo

There are actually a couple of good reasons for holding large amounts of cash.

a) In between investments e.g. sold a house and buying a new one soon so can tie money up.

b) Elderly people who may not consider it wise to get into long term investments - there's a joke here about not buying long playing records

On the whole though, I don't think that holding lots of cash is a good idea unless you are a very cautious investor. There are normally better things to invest in even for the cautious.

david78

I think ING knew it was going to change the AER by 0.15% all along. Don't think they have won any friends by waiting until today. I suspect ING are still losing money and will be under a lot of pressure from their parent company to turn things around. This means they probably will fall further behind as the bank of england rate rises some more.

The strangest thing though, next year when the BoE drops the rate by 0.25%, I bet ING drops it rate by the full 0.25%.

Thank goodness I don't have a lot with them at the moment. And thank goodness I'm a tart. ;D

LongDongDave

Title says it all

I've had 5k with them since i opened my a/c last year, and not really added or taken away from it. Any savers here know how long it takes to withdraw money to the nominated a/c should i want to add some more until the New Year? Say i do the the transfer on Monday, what day will it be in my current a/c (First Direct)? I could do a trial run, but i thought i'd ask here first.
And if anyone knows the same info for the Leeds & Holbeck, which i'm considering opening, that would be a bonus. And does L&H do a credit check....which Cahoot do...hate credit checks on my file just for a savings a/c >:(
Thanks

david78

If you do the transfer on a Monday, it should be in your account at the end of Wednesday.

With some current accounts you can withdraw the money or initiate a BACs transfer to another account of the cash on the Wednesday, but on others you need to wait until the Thursday.

isasmurf

Hi LongDongDave

Whenever I've transferred from ING to First Direct, it's appeared in my account in a couple of days. Say I order it on a Monday evening, it's appeared by the Wednesday morning. On a couple of occassions it's appeared the next day!

HTH

SS