ING - Basle proposals

molly_mandy_2

I think the clue is in the words "large accounts" at the time they wanted more investments

VT82

goon1 wrote: »

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.

Capital Adequacy is about how much retained profit and market capitalisation (total value of all shares issued) the bank has. It has nothing to do with how much retail funding they have in. In fact, if they have more best buy funding than they need, and can't reinvest at a high enough rate to make profit from their margin, they will lose money and their capital adequacy will go down.

cashbackproblems

NikkiP wrote: »

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 ?

I was scrolling down expecting such a pointless comment to come up. Can you tell me how many banks have gone bust and NOT paid out customers' deposits? thanks

opinions4u

cashbackproblems wrote: »

I was scrolling down expecting such a pointless comment to come up. Can you tell me how many banks have gone bust and NOT paid out customers' deposits? thanks

No bank that has gone bust has paid out on all it's customer's deposits.

Various compensation schemes and central governments have plugged the gap.

But there are cases (e.g. Icelandic banks in the Isle of Man) where many savers have lost significant sums of money as a result of bank collapse.

By the way, around 98% of UK savers are fully covered by the FSCS. But this is only 67% of the funds in our banks.

As for the OP, Basel accounting standards are nothing to do with the interest rates offered to new and existing customers. Offering an easy access savings account at 2.75% is a loss leader. They don't want to pay you that rate forever.

alanq

The ING instant access rate for new customers is reduced to 2.6% AER from today.