Ing 6% fixed for 6 months & 5.65% Web saver (merged)

David_B_2

I'm not a expert but I'm currently looking at additional saving accounts myself and I've seen a lot better rates and for a longer fixed periods.

If your not to bothered about it being with ING I'd look at Martin's section on savings. He is recommending the Llyods savings account at present at 8% for 2 year fix.

Milarky

I believe the offer only applied if you already held an ordinary ING savings account. And you had to phone up to request the fixed rate account - it could not be applied for online. It may still be available but I don't know.

Reestit_Mutton

David_B wrote:

I'm not a expert but I'm currently looking at additional saving accounts myself and I've seen a lot better rates and for a longer fixed periods.

If your not to bothered about it being with ING I'd look at Martin's section on savings. He is recommending the Llyods savings account at present at 8% for 2 year fix.

The Lloyds offer is a monthly saver with a limited monthly deposit. If you have a large sum of money and want the best rate for all of it from day one, this is NOT the way to go.

Comparing the Lloyds monthly saver account with ANY standard fixed rate account is like comparing apples and oranges, I'm afraid.

For anyone who has a number of thousands to deposit and believes that they don't need this money for 6 months but isn't so sure about their needs over a 1-2 year period, I fail to see how ING isn't the best deal on offer at present.

Reestit Mutton

pbw

reestit mutton - my next question is, are they still available to existing customers or not? i agree, this is the best deal for people who don't want to lock up their money for a long time but are certain they can do without it for 6 months

thanks

torbrex

it looks from the website that the account has been withdrawn but it might be worthwhile giving them a phone to check, the account can only be opened by phone anyway and as it only took me 5 minutes to get mine it would be worth giving them a call. I was told that I could open a maximum of 10 fixed rate accounts but no mention of the offer being withdrawn and that was just about a week ago.
You must have a standard account from which to transfer from and after 6 months your cash will be transfered back to this account, the thing I liked is that you are told from the outset exactly what interest is going to be earned.

heatherw_01

heatherw_01 wrote:

If I move my money across from my other ING accounts, this will not affect my tax free allowance will it?

Will I have to move money around less than the tax free allowance amount or can I move what I want?

I am registered for gross tax.

What would happen if I move money between my ING accounts to my websaver and am over the yearly allowance. Will they just tax me or take me off gross interest?

ReportInvestor

Tax is your responsibility. ING is not the Revenue, but the Revenue will receive details of your ING interest & might choose to follow up if you are registered for gross interest and receive more than the annual tax free allowance.

Reestit_Mutton

heatherw_01 wrote:

What would happen if I move money between my ING accounts to my websaver and am over the yearly allowance. Will they just tax me or take me off gross interest?

Hi Heather,

It is the customer's responsibility to notify ING that you no longer require the interest to be paid gross. They will have no knowledge of your tax free status otherwise and thus will continue to pay interest gross of tax for as long as you want them to.

However, it's not easy to know what to do in your situation when only *part* of the interest should be taxed, as can happen when an interest rate rise results in you breaching your annual tax-free allowance. The problem here is essentially one of forecasting future income by year end which is impossible to do with any amount of variable rate interest income.

You may just have to resign yourself to filling in a self-assessment tax return to declare any underpayment of tax at year end (once your full year's income is known) or opt to have one of your savings accounts pay net of tax and claim back any overpayment of tax at year end by the same means.

It can be a hassle dealing with a tax return when you haven't had to do one before but I really can't see any other way around the situation.

Anyway..the bottom line is that ING won't do anything to your interest without your explicit say so.

HtH
Reestit Mutton

Bogof_Babe

ING won't know whether you have other untaxed savings accounts with other providers, which added together might take you over the tax-free limit, so they won't be able to help with your overall tax situation, and nor should they be expected to.

As stated earlier in this thread, I am in the same situation and have decided that the easiest way is to move surplus capital into a normal current account with no or negligible interest, to avoid breaching the personal allowance limit. Given that I'll need to do this anyway to create money for living expenses then I might as well do it as a lump sum.

Of course we won't be able to work out how much capital is involved until after the budget (21st March) when the Chancellor tells us how much 2007-08's personal allowance will be. Working on previous annual increments, I would think it will be around £5,200, give or take a few quid either way.

Assuming all your capital is in ING's 5.65% account, that would mean that if you have over about £92,000, then you would need to think about one of the alternatives suggested above.

gelato_cat

Yup, don't know when they were decided but the figures are here:

http://www.hmrc.gov.uk/rates/it.htm

Suze

Bogof_Babe wrote:

Of course we won't be able to work out how much capital is involved until after the budget (21st March) when the Chancellor tells us how much 2007-08's personal allowance will be. Working on previous annual increments, I would think it will be around £5,200, give or take a few quid either way.