ING - Basle proposals

goon1

Quality!
Have over 150k with ING - last year had to close and re-open to get a good rate. Now I have to close for 6 months and then re-open to get a decent rate!
They do offer a 12month fix for 2.5% for existing customers.
Please tell me how this 'bank' can give new customers 2.75 for a year with instant access, while only offering existing customers 2.5 fixed (with usual penalties).
Guess that the latest recomendations about capital adequacy coming out of switzerland haven't filtered through yet.

xrjtg

goon1 wrote: »

Please tell me how this 'bank' can give new customers 2.75 for a year with instant access, while only offering existing customers 2.5 fixed (with usual penalties).

Enough people don't realise or care that their rate has dropped to make it more profitable to treat people this way than to try and retain depositors who are always chasing the best deal.

The initial "good" rate is sometimes funded out of the marketing budget.

goon1

That I understand - but if you are savvy enough to realise that - you would hope they are savvy enough to offer an acceptable alternative.

xrjtg

Have you tried phoning them and asking if they're prepared to match the terms of the new deal? I can imagine that would work occasionally (although I don't recall any cases of it working with ING).

goon1

Oh yes - that is when I found out about the 6 month clause !
Sympathetic advisors - but no other option.
Although they did recommend I keep residual balance paying 0.4% in case they changedpolicy again soon!

xrjtg

Then it looks like you have to play the game, I'm afraid. At least you know the rules!

If it's any consolation, you can beat 2.75% elsewhere.

NikkiP_2

its not all about the rate !!!!
Remember if it is all in your own name you will only have 'security' up to £50k if ING goes bust.
Would you rather get 10% for a year and then 66% of your capital back, or 2% and ALL of your capital back ?

xrjtg

ING are covered by the Dutch scheme, so the limit is 100000 euros. And I think you know that's that not the decision you actually need to make: it's about your tolerance of risk, and how big you judge the risk to be.

goon1

xrjtg wrote: »

ING are covered by the Dutch scheme, so the limit is 100000 euros. And I think you know that's that not the decision you actually need to make: it's about your tolerance of risk, and how big you judge the risk to be.

Total amount spresd over me and my wife - factored in protection limit and time-frame to get through euro red tape.
Bottom line - I know the 'game' for rate hunting but would suggest that under recommended actions from the swiss national banks then Uk and euro banks need to recognise that their need for funds is not going down under expected capital adequacy ratios.

noh

goon1 wrote: »

Total amount spresd over me and my wife - factored in protection limit and time-frame to get through euro red tape.
Bottom line - I know the 'game' for rate hunting but would suggest that under recommended actions from the swiss national banks then Uk and euro banks need to recognise that their need for funds is not going down under expected capital adequacy ratios.

Don't know what the Swiss national banks have got to do with it.
The Basel Comittee has members from many countries.

If you take a look at INGs Q2 reuslts:-
http://www.ing.com/group/showdoc.jsp?docid=461048_EN&menopt=prm|pre|prl|010

You will see that they state their Tier 1 ratio is 8.6%
Basel III requires a Tier 1 ratio of at least 7% by 2019.

ING haven't got a pressing need to raise more capital

Loughton_Monkey

goon1 wrote: »

They do offer a 12month fix for 2.5% for existing customers.
Please tell me how this 'bank' can give new customers 2.75 for a year with instant access, while only offering existing customers 2.5 fixed (with usual penalties)

Strangely, I had some large accounts with them, and then switched them when the special bonus ran dry. Didn't close the accounts though, so am an existing customer. Then out of the blue, I got offered a 2.7% rate for the next 8 months. No fix. No conditions.

What do I have that you don't?