ING chief goes as savers take out £3.6bn

Ian_W

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

Full story HERE.

The bit I like is:
Harryvan added: " The Bank of England [raised rates] four times in the last 12 months, we followed twice. We saw in August, when we ended up 75 basis points behind, that this led to the outflow we saw in the third quarter."
He said that while the bank had budgeted for some consumers to move in search of higher rates, the level of defections had been a surprise. "It became clear to us that we will have to track closer to base [rate]," he added.

Above 6% I'd say and then they'd struggle. :rolleyes:

Consumer 1 ING 0

EdInvestor

:T

That's strike no 2 after the queues at Northern Rock.

Who will be next?

McSaver

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

Its ther'ye own fault for being stupid with the interest rates.

paulboy83

Could this signal a re-think at ING? I liked them when I was saving with them, but I bailed out a few years back now when the rates stopped being so good.... Perhaps this will signal an increase in interest rates to make them competative again?

Primrose

Well, I think even an idiot might have foreseen that any bank not offering competitive interest rates, and treating its customers likes fools, would, sooner or late, face a consumer backlash which costs somebody their job.. I too withdrew all my money, apart from about £5. If they really are going to reposition themselves in the market I might, in the very long term, give them another chance but it the meantime I will be watching and monitoring their interest rate policy with interest.

Rafter

I think that they didn't realise how savvy UK consumers are getting thanks to sites like this in the same way the credit card companies had their fingers burnt by the stoozers.

Fact is that you cannot offer a long term savings rate above 6% because you can't lend the money at a high enough rate to pay the savers interest and cover your costs without taking big risks.

I'm guessing in time that savings rates will come down a bit and bonus' will be less and that mortgage rates will go up a bit and not be as competitive. At least everyone will be getting a fairer deal then rather than 'loyal' customers being penalised.

R.

planemad

I think that this is INGs fault to be honest, how can they justify such a poor rate of savings when many others are offering nearly a 1% more!!

As above us consumers are getting smarter and the banks don't like it as they have to work harder for our money.

Jonbvn

Rafter wrote: »

I think that they didn't realise how savvy UK consumers are getting thanks to sites like this in the same way the credit card companies had their fingers burnt by the stoozers.

Fact is that you cannot offer a long term savings rate above 6% because you can't lend the money at a high enough rate to pay the savers interest and cover your costs without taking big risks.

I'm guessing in time that savings rates will come down a bit and bonus' will be less and that mortgage rates will go up a bit and not be as competitive. At least everyone will be getting a fairer deal then rather than 'loyal' customers being penalised.

R.

Spot on with this post!:beer:

Due to the advent of the internet and sites like this, the banks & BS's can no longer rely on customer inertia.

These days loyalty sucks;)

Remember all the banks and BS's should be treated similarly, if they drop their rates.

baby_boomer

I'm putting away any Schadenfreude.

The lesson to learn is that you can't offer top rates and rely on inertia to keep the money.

Some people think this will mean newcomers to the market will have to offer top rates all the time.

A realist might think that there will be fewer newcomers to the market as a result - with a subsequent long term downward influence on interest rates.