ING Isa at 6.0%

climbgirl

Can't see if this has been discussed before...

I saw an ad on the tube this morning for an ING Isa advertised at 6.0% AER. The (very) fine print read that it was 6.55% fixed for 6 months, then dropped to their variable rate which is currently 5.13%. Seemed quite a high rate (didn't appear to be any catches), albeit for a short time period.

pbw

hi,

its been discussed here;

http://forums.moneysavingexpert.com/showthread.html?t=386740

in short, it is a very good offer, but is only worthwhile if you are prepared to transfer out after 6 months...

gazhawkins

Why go to all the bother?

National Savings ISAs offer 5.8% with almost no strings attached (1000 quid min. deposit).

ING, like Abbey and other institutions at the moment, are just trying to get their products in the "BEST BUY" tables - get the funds in and hope folks can't be bothered to switch.

pbw

hi gazhawkins,

like i said, it is only worthwhile if you are prepared to transfer out after 6months...therefore people who are active it is worth doing... for others, as you state, the NS&I would be the best option.

i on the otherhand am willing to take INGs offer, stay with them for 6 months and then see what the best ISA to transfer into is at that time... you say NS&I is the best option, but their rate is only guaranteed till 2008...what will you do if the rate goes down? you'll transfer out

so what is the difference? with ING you transfer out after 6 months and with NS&I it will be sometime after march 2008 and i wouldn't expect them to be the most competitive after the guarantee time frame is over.

ManAtHome

Over 6 months on £3k, you only get an extra £11 with ING and will presumably lose some interest during the transfer. Sure, you may end up transferring the NS&I, but it's a cert you'll be transferring the ING one.

pbw

fair points gazhawkins and manathome. i think i just think differently and am the ultimate rate tart!!!

gtmoon

never switch ISA before but would think the new provider will make the best effort to mininise the lost of your interest earn, see Halifax,

http://www.halifax.co.uk/isas/transferringyourisa.asp

Step 2

You won't lose any interest for the period your money is in transit because the funds are shown as credited to your account from the day after they left your existing provider

masonic

gtmoon wrote: »

never switch ISA before but would think the new provider will make the best effort to mininise the lost of your interest earn, see Halifax,

No all suppliers do that, though. Some suppliers (A&L) even have the cheek to wait for the ISA cheque to clear before paying interest on the balance transferred.

turnbull

Hi,
ING Direct offers this for the first 6 months. However, I presume there is a catch beyond the obvious (6 months only at this rate). Is it possible to transfer an ISA from elsewhere into ING Direct and has anyone gone for this ISA?

Seems to good to be true.

Thanks,
GT

lisyloo

When you transfer your ISA you lose some interest (on the entire amount) when it's "in the post".
Ideally this should be 1 or 2 days but you can be unfortunate and it gets posted over a weekend (or worse Easter weekend when there are 4 days holiday).

If you are going to transfer once to ING and then out after 6 months then you need to take account of the lost interest and see whether it's worthwhile.

Bear in mind that your gains will be 6.55 minus your existing rate, but whilst your application is "in the post" you will lose the entire 6.55 on your whole capital for a few days.

I haven't crunched the numbers, but you need to do that if you are considering this.

elektra

turnbull wrote: »

Hi,
Is it possible to transfer an ISA from elsewhere into ING Direct and has anyone gone for this ISA?


Thanks,
GT

doesn't look like it

Taken from their terms and conditions


You cannot transfer funds to your ING Direct Cash ISA from ISAs with other ISA providers
(see condition B.2 below).
B2. You cannot transfer funds to your ING Direct Cash ISA directly from ISAs held with other organisations, unless we let you know separately that you can do so.


and NS&I Direct ISA says 'Transfers in will only be accepted from a NS&I Cash Mini ISA' (according to moneysupermarket.com)