Ing decrease Rates On Web Saver

kenshaz

[FONT=Verdana, Arial, Helvetica, sans-serif]We are writing to let you know that as of 1 May 2007, we will be changing the interest rate on our Web Saver account to 5.5% AER.[/FONT]

rebeccaj

erm, that's a decrease - it is currently 5.65%.

edda

Rebeccaj is correct - it is a decrease (although the notification email doesn't mention that). It reads:

We are writing to let you know that as of 1 May 2007, we will be changing the interest rate on our Web Saver account to 5.5% AER.

The ING Direct Web Saver offers a high savings rate on anything from £1 to £250,000 to customers who are happy to bank online only. What’s more, if you need access to your savings at any time, you can still make unlimited withdrawals without any interest penalties, as confirmed in our terms and conditions. Please take a moment to review them on our website the next time you log on to your account.

All this adds up to one of the most competitive online accounts available on the market today – a great place to watch your savings grow.

Obviously written by the PR department!

justaquickie

This seems to be quite typical for ING of late. For those who can remember when ING actually increased their rates occasionally, they would refer to such 'changes' as 'increases'. For example, in 2004 we were notified: ".....you will be pleased to hear that from 1 March 2004, ING Direct has increased our savings rate to 4.5%...." (sic).

To make sense of today’s communication, you need to remind yourself which is the “Direct Savings” account and which is the “Web Saver” account, and then login to see that the current rate on the latter account is actually 5.65%. Only then can you recognise it as being more bad news from ING: a decrease.

I suppose in a country where the chancellor’s own actions endorse this very sort of ‘spin’ (see budget speech income tax ‘changes’) we have to accept we will (a) spend much of our lives reading and deciphering small-print, or (b) regularly get ripped off, or (c) need to emigrate.

Some might consider this type of spin to actually be straightforward, old-fashioned deceit.

gelato_cat

My bf said to me last night "ING are raising their rate to 5.5%!" I was like, hang on, I thought it was 5.65% now?

He got sucked in and isn't stupid - but doesn't pay attention to interest rates (he had all his money in the 4.75% account for years and only just switched to the other web saver). I bet there are plenty more like him.

Suze

dwsjarcmcd

ING have been treating people like mugs for a couple of years now. The tactic of the web saver not being able to be directly invested in is a cynical ploy to placate their customers while at the same time being totally aware that a large percentage of these customers would either 'forget' to transfer their funds, or they would get a few day/weeks paying the lower rate. I am so glad I moved my (small amount) of savings out in the Autumn.

Ditch ING now, and be very wary of any of their products

ManAtHome

Probably the last year rather than two - but they've certainly done the "temporary rate increase due to withdrawals/panic" in the last 6 months (a couple of months after they started advertising mortgages more than savings).

They've certainly moved into the standard/lower end of the savings market and are now relying on inertia. I moved out in November when I could get the extra 0.5% to make it worthwhile - you can probably still manage that on fixed rate, but I suspect they're thinking that fewer people will move for 0.25%.

dwsjarcmcd

ManAtHome wrote: »

Probably the last year rather than two - but they've certainly done the "temporary rate increase due to withdrawals/panic" in the last 6 months (a couple of months after they started advertising mortgages more than savings).

They've certainly moved into the standard/lower end of the savings market and are now relying on inertia. I moved out in November when I could get the extra 0.5% to make it worthwhile - you can probably still manage that on fixed rate, but I suspect they're thinking that fewer people will move for 0.25%.

Agree with everything you have said, their problem is that their margin must be under further pressure and if a base rate rise happens as many predict next month, I suspect that they will not pass on the whole of the increase. If that was not the case, why not just wait a few weeks until the announcement is made. I suspect they will be 0.5% below the market again. Hope I'm wrong.

[Deleted User]

I don't even have the option to change to the Web Server account. I've had the 4.75% account since early 2004 with an initial £10 deposited which has earned me £1.14 in interest.

Fella

This strikes me as an extremely calculated & nasty move. ING know full well that IRs will rise by 0.25% in a couple of weeks. I bet this decrease is so that when they do ING can announce (with fanfares) that they're passing on the FULL 0.25% increase.

Of course, all that'll mean is an increase to 5.75% - in reality a net increase of .10%.

And it probably won't take effect until the end of May either.

I've kept a certain amount of money with ING 'cos I like the interface but if the above happens they can stuff it.

Fella

codetown

ING is uncompetitive at present.
It is well known that the base rate will go up at least 0.25% in 2 weeks time and it is wise to anyone who is on ING to think to ICESAVE asap. I left ING over 6 months ago and have no regrets at all!!

Icesave is almost identical in features to ING (no cathes, easy transfers, monthly interest) but has a very good guarantee of keeping up with the base rate at least until October 2011!!! (see 1 below).

Even those lazy savers should think about it... it is over 4 years of at least competitive interest with no need to worry!


1 From ICESAVE web site:
"The gross Annual Equivalent Rate of Interest (AER*) paid on balances over £250 is guaranteed to exceed the Bank of England Base Rate* by at least 0.25% until 1 October 2009 and thereafter not to be lower than the Bank of England Base Rate until 1 October 2011"