ING - take care when moving money on DD

Milarky

This is as much about bank accounts as anything else, but arises from a mistake in giving a direct debit instruction to ING.

If you wrongly instruct them to move money into the account when you really meant to have it paid out they will slavishly attempt to draw this by direct debit from your bank. If attempt this causes your bank to go sufficiently overdrawn [beyond your agreed overdraft] the request will be bounced.

Not only do you not have the money in the bank as you expected but the bank can then apply as charge. This may seem very unfair but it can [and did!] happen. So take extra care when moving any large sums OUT of ING to make sure that this is what you have asked them to do.

The same mistake cannot happen in reverse [paying out more in ING at a future date than the current balance] as their website informs you of this and asks you to reduce the amount. If this happens you would spot that the direction of payment requested was incorrect - allowing you to change it.

Thus it is good advice to future date deposit where practical and to take a hard copy of what you have requested. The payment will be shown as 'pending' until it happens, of course, but that is not the point really - you need to take steps to prevent a mistake occurring at the set-up stage.

[Good news is that the bank agreed to waive the charge as it was a 'first offence' but I think I shall let ING know about this and suggest they could offer some kind of additional protection maybe?]

By constrast, if you try to pay money into Egg savings by mistake and you have a debit card, and you don't have enough money in your bank, then all that happens is the request is immediately declined - no 'insufficient funds' charge. [Does anyone else feel that being charged for a DD - £35 - can be justified given this alternative method of credit is available?]

Stonk

When pulling away from traffic lights, always ensure you are in a forward gear, or you might crash into the car behind.

Walletwatch

I always ask for the post-transfer balances whenever I request a transfer into or out of my egg or ING accounts.

meanmachine_2

If you're referring to online accounts, they're all the same. All linked to current accounts by direct debit and they all take AGES to move money around. So, for 6-8 days your money suddenly disappears and doesn't earn interest in that time. Hmm, I wonder who has it....

That's another reason why internet accounts offer such good rates.

It really is a disgrace.

david78

But Egg links to the current account via your switch/payment card. Deposits earn money instantly even though the money takes 3 days to hit the account. Egg is not the highest interest though, but they occasionally have special bonus offers (none at the moment).

MarkyMarkD

meanmachine wrote:

If you're referring to online accounts, they're all the same. All linked to current accounts by direct debit and they all take AGES to move money around. So, for 6-8 days your money suddenly disappears and doesn't earn interest in that time. Hmm, I wonder who has it....

That's another reason why internet accounts offer such good rates.

It really is a disgrace.

Meanmachine, what you say simply isn't true.

Online (and telephone for that matter - there's absolutely no difference) accounts can transfer money between themselves and current accounts in 3 ways. None of them cost you "6-8 days" of lost interest - the maximum is normally 3 days.

DIRECT DEBIT is in fact the best. There is NO loss of interest - the funds debit your current account the same day they credit your savings account. But this is only available as a deposit, not a withdrawal, method, and not all savings accounts offer this.

BANK GIRO CREDIT is the most common, and does involve loss of interest for at least 2 days - the day of withdrawal and the next day - and the funds should arrive on the third working day. For one of these days, the money is with the recipient bank, but not credited to your own personal account - so it's not being kept by the savings bank as you seem to be suggesting. BGC can be used for withdrawals and deposits.

DEBIT CARD is offered by even fewer institutions than DD and BGC and only applies to deposits. It's a good method because it can allow for same day crediting and debiting, or even crediting the recipient before hitting the paying account.

I think the original poster's point was an esoteric one. I've never confused depositing with withdrawing, and I don't think it's unreasonable for a savings institution to follow your instructions even if you make a mistake. There's no way at all they can know whether you intended to make a deposit or not. And therefore there's no way for them to avoid raising a DD which will then, in turn, lead to a rejected DD charge from your bank if you had, in fact, made a mistake and therefore didn't have the funds to meet it. Yes, they could offer debit card as a method which would avoid the charge, but there may well be other reasons why they prefer DD.

juno

I think ING is very clear when moving money in or out. You select the first box to say which you want the money to go from, and then the other changes for you to select where to move your money to. And it gives you a confirmation screen for you to check!

deemy2004

meanmachine wrote:

If you're referring to online accounts, they're all the same. All linked to current accounts by direct debit and they all take AGES to move money around. So, for 6-8 days your money suddenly disappears and doesn't earn interest in that time. Hmm, I wonder who has it....

That's another reason why internet accounts offer such good rates.

It really is a disgrace.

Are you sure ?

Is it so ?

Apparently not !

If I wanted to, I could transfer the same money between a halifax current and an halifax websaver instantly 100 times in a single day !... if I wanted to that is.........

No_6

Milarky
You can not blame your bank from charging you because you were in the WRONG.

ING is very easy to use, it even asks you to confirm the transaction.

If you tell it to transfer money from your bank account, it will.
You can't then tell us, that this was wrong and that you got charged for your
error and every thing has to change because you D.A.C

After 1183 posts I would have thought you were more astute.

You say that "EGG will tell you" if you do not have the funds available !
This is because you are using a debit card and if the amount isn't there
its your bank that declines the transfer.
EGG just tells you politely, that you are a Plonker !

Would you really like ING to know what is in your bank account.

Attention to detail !! in all we do.
Regards
N0 6

Milarky

By constrast, if you try to pay money into Egg savings by mistake and you have a debit card, and you don't have enough money in your bank, then all that happens is the request is immediately declined - no 'insufficient funds' charge. [Does anyone else feel that being charged for a DD - £35 - can be justified given this alternative method of credit is available?]

Well, you try to post a timely warning - that you can get charged by your own bank simply for trying to arrange a transfer via the method of direct debit, and my suggestion that charging the customer for such a mistake [£35 it would have been] is basically iniquitous falls on deaf ears - thanks very much!!

This attitude is not what I expect from fellow moneysavers - even the 'astute' ones - of which I am not one, gladly!

Because ING is one of the most featured [and generally well regarded] savings accounts discussed here, I felt that this salutory experience might contrast with that general picture and alert [yes, 'alert' the 'unalert'] other ING customers/prospective customers of a particulary nasty hazard should they simply do as I did and simply misread ING's drop down screen. Yes I was careless - I freely admit it - but I've used the account many times before this without incident and this was the first time I failed to spot my error.

ING requires a DD link to your current account for both deposits and withdrawals. Other internet accounts [eg cahoot] seem to be able to offer much more flexibilty - ad hoc payments to any other account - to make withdrawals. If you can send the payment yourself then you couldn't mix that up with a 'deposit' - but with ING the DD method has been the source of the mistake.

So other moneysavers with ING accounts - double check that at the first stage you have selected the account that you intend to credit - don't do as I did and don't get stung with a bank charge over it.

[rant over and out]

Fatboy_NSS

I don't see what your problem is here. You asked ING to move money from your current account into your savings account. ING cannot see your current account balance so they do not know if you have funds available or not, they just request the money from your current account through the direct debit you have set up. If it turns out you don't have the funds available then your current account will bounce the DD and charge you accordingly, which is £32+.

Not wishing to be rude, but online accounts pay a premium rate because you put transactions through yourself rather than relying on bank staff to do it for you. If you accept this responsibility and then mess up it's nobody's fault but your own.