ING drops rate 4.75% - 1st August

isasmurf

cgnao wrote:

They have probably reached their growth targets. Now they'll use inertia. 90% of the customers they lured in will stay.

Or perhaps it's because they posted losses of 8 million Euros.

Ember999

Just logged on to my AOL and noticed with a smirk that ING are advertising the fantastic rate of 5% :eek: naughty, naughty! Advertising 5% to drag in more customers to then slash the interest rate they pay to 4.75%.
The critters!

Macce

I cant believe banks are allowed to get away with this. People who want to save are having a very raw deal. I'm just worried what rate Cahoot will drop to (hopefully not below 5%), currently I'm enjoying a fantastic 5.65%

YorkshireBoy

Ember999 wrote:

Just logged on to my AOL and noticed with a smirk that ING are advertising the fantastic rate of 5% :eek: naughty, naughty! Advertising 5% to drag in more customers to then slash the interest rate they pay to 4.75%.
The critters!

To be fair though, when you visit their site the reduction in rates is very prominent. Also, they've gone public with over 2 weeks notice - and that's more than enough time to move your money out and somewhere else better - but where if they're all at it?

I'm not condoning the reduction, just applauding their honesty/notice.

deemy2004

Macce wrote:

I cant believe banks are allowed to get away with this. People who want to save are having a very raw deal. I'm just worried what rate Cahoot will drop to (hopefully not below 5%), currently I'm enjoying a fantastic 5.65%

There not getting away with anything... the money market rates have already dropped and are discounting a rate cut.. the longer they delay in cutting their savings rates the greater the relative costs incurred... A BOE rate cut will be behind the curve... I.e. its already being priced in.

Now what happens after a BOE rate cut depends on whether the market starts pricing in a further rate cut.

Remember 2003 ! Savings Rates rose By over 1% BEFORE the BOE's FIRST base rate rise from 3.5% to 3.75% - As the market was already pricing in further base rate rises beyond 3.75% - Infact with base rates at 4% - The market was pricing in base rates of 5% !

At base rates of 4.75% - The market was pricing in base rates of 5.25%.

Now with base rates STILL at 4.75% - The market is pricing in base rates of 4.5% and MAY even price in a lower base rate - Though this does not necesarily mean that base rates WILL be cut beloe 4.5%

Macce

I suppose people with Tracker/Flexible mortgages will see benifits ? I expect they will want to stick to existing rates so they dont lose out.

System

Well, i may as well transfer all my cash into my Lloyds online saver - there aint much difference in the interest rate and it will be easier for me to transfer all my savings into the Halifax.

alared

Halifax Websaver pays 4.9%.
The trouble with moving anything at the moment is that they may cut too.
Only two weeks ago I was all set to move money from Coventry netsave (4.85%) to ING,now I`m glad I never.
Maybe best to let the dust settle before any hastie moves.

santana-mx3

Macce wrote:

I cant believe banks are allowed to get away with this. People who want to save are having a very raw deal. I'm just worried what rate Cahoot will drop to (hopefully not below 5%), currently I'm enjoying a fantastic 5.65%

I am on the one year 5.65% introductory deal too. It is due to expire shortly. However, I got the following email from Cahoot on 13 July (and you will presumably get a similar email nearer the anniversary of your account opening):

Dear Mr ................,

As the interest rate guarantee* on your introductory savings account is shortly coming to an end, you may be wondering, will the interest rate or my annual interest change?

We are pleased to confirm that the current variable savings rate of 5.65% gross p. a./AER** and annual interest will continue unchanged, which means you can continue to save at this very competitive rate.

We will of course continue to monitor the savings market to ensure your rate remains competitive, and if the Bank of England decides to change the base rate, we will email you to let you know of any changes that affect your account.

Remember you can deposit additional funds into your account at any time. Funds can be transferred by Direct Debit, Standing Order or as a one off bill payment.

So why not take advantage of this great rate and make your money work harder!



Regards

Harvey Griffith
cahoot Contact Centre Manager

So just when I thought I would be transferring the money from Cahoot to ING, ING cut their rate and Cahoot unexpectedly maintain theirs. I don't know how much longer though.

Shrimp_Stu

So where are us ING customers going to migrate to?
First Direct? I dont like the idea of no interest in the month where you make a withdrawal or Cahoot?