ING savings account - should I move my money?

juicygirl

I recently opened an ING savings account due to the interest rate offered in order to save for my tax bill. By the time I have to pay my next bill in Jan 2011 I expect to have approx £20k in this account.

I have just read Martin's weekly newsletter and discovered my savings with ING aren't protected as I thought because they are an EU bank.

My question is this - should I move my money to a lower interest account but have the protection if things go the way of IceSave? What would all you savers do?

Thanks

gozomark

my savings with ING aren't protected as I thought because they are an EU bank.

Britain is in the EU, so LLoyds, Barclays etc are also EU banks

juicygirl

From Martin's newsletter:

£50,000 protection doesn't apply to every bank. Most people now know, if their savings provider went bust, you're protected up to £50,000 per person per UK regulated financial institution. Yet some EU owned banks aren't UK regulated eg. ING Direct relies on the Dutch Govt., or shockingly Post Office Savings relies on the Irish.

Sorry, I meant aren't UK regulated, which I assume the other banks you named are. I did not realise ING were not a British company.

Mikeyorks

I'm not moving my money out of ING. But if you're wanting interest -then LLoydsTSB Classic + Vantage offers you 4% (variable) for balances between £5k and £7k. You can open up to 3.

But do watch you need to fund £1k monthly ...... which you do simply by moving £1k in and then straight out again. Once you have > 1 account then you just move £1k from the 1st account > the 2nd ( > 3rd) > back to 1st. Takes seconds if done online. But don't exceed £7k as the interest is just 0.1% on excesses.

lisyloo

I am not moving money out of ING.
Sorry, but I think it's a personal decision.

stator

Even the money in IceSave was refunded by the UK government, so we are still talking about very low risks here.
However I would make sure you have at least some savings in an FSA registered bank.

Batchy

If anything Dutch governement gives bigger guarantees than the £50k the UK offers, its more like €70k or €100k but im sure someone can correct me in due course.

Its basically like for like but a different government guranteeing.

noh

Batchy wrote: »

If anything Dutch governement gives bigger guarantees than the £50k the UK offers, its more like €70k or €100k but im sure someone can correct me in due course.

Its basically like for like but a different government guranteeing.

Yes its EUR 100000

http://www.dnb.nl/en/about-dnb/consumers-and-dnb/consumers-and-supervision/depositogarantiestelsel/index.jsp

juicygirl

Thanks for the replies. Think I will leave it where it is