ING drops rate 4.75% - 1st August

oldagetraveller

Bradford & Bingley eSaver account? Interest rate guaranteed to be 0.25% above BOE rate until 30th June 2006. That's what they've just informed me by e-mail.

Stonk

Yes - B&B increased the amount and length of their guarantee to compensate for the recent rate cut of 0.15%. It now sounds like a very good guarantee to me.

thor

Does anyone know what the boe rate was when ING came on the scene. I seem to remember that it was rate cuts was all the rage then as well. When ING was launched did it come in at 4.30%? If so I would say that we will be only 2 cuts away from being back there again.
It's all very well blaming the money markets but all these banks are continually increasing the margins and the proof comes in the form of the multibillion pound profits they make. Sure as a business they are entitled to make money but why do they always come out with these the !!!! & bull stories about remaining competitive, blah blah blah etc when they pull these fast ones on us. Then again I could not imagine them tellling their long suffering cutomers that the extra income their savings are generating are being put to good use in increasing the Directors already huge bonuses and topping up their massive pension schemes. Sorry Deemy I don't buy it. Admittedly I don't have the figures to back my claims but if you could provide data which shows that banks savings rates matches the money market rates you are talking about then I would be willing to change my mind.

santana-mx3

thor wrote:

Does anyone know what the boe rate was when ING came on the scene.

According to their website:


Effective from AER Gross PA Net PA

01-08-2004 4.85 4.75 3.80

01-06-2004 4.7 4.60 3.68

01-03-2004 4.5 4.41 3.53

01-12-2003 4.3 4.22 3.38

01-09-2003 4.1 4.02 3.22

11-05-2003 4.3 4.22 3.38

Their excuse for reducing the rate was: "Over the past few months the overall trend in savings rates has been down and in response many of our competitors have already reduced their rates. We have held our rate for as long as possible, however this continuing downward trend now requires us to act." No it doesn't require them to act (a reduction in the B of E base rate may require them to act). It just gives them an excuse to act. However, if as has been stated earlier they were losing money and this was a loss-leader to gain customers many of whom are unlikely to move due to inertia, then that could be another reason.

Milarky

[Not about ING's rate decision - just info]

I have just found out that deposits into ING are made two working days after whatever date is specified - even with future dated requests. Thus, if you request a deposit for a week today [Tues, 25th] then it won't happen until two days after [Thur, 27th]. If you want money taken from your bank on a given date, therefore, you need to deduct 2 working days from the ING end [in the above example, you would specify Fri, 21st] by amending the instruction accordingly..

alared

I think it asks "what date do you want the money to leave your account",then with the BACS system it`s usually in your nominated account on the third WORKING DAY.

sonnyb_2

I now closed my ING account and opened a new saving account with ICICI Bank
http://www.icicibank.co.uk/ who are offering 5.40 percent interest rate.

pin

sonnyb wrote:

I now closed my ING account and opened a new saving account with ICICI Bank
http://www.icicibank.co.uk/ who are offering 5.40 percent interest rate.

You should check the thread on ICICI before deciding whether to open your account with them. Personally I think it will be fine (but probably a bit slow), however I would still suggesting reading the thread.

cloud_dog

Am opening an account with ICICI but will keep the ING account open as I find the online management of the account very intuitive and good.

I'm sure ICICI will start reducing their rates pretty soon.

As an aside I think all this ING knocking is a bit unwarrented. They started their account with a headline rate of interest, beating most (if not all other) accounts, and because of this when rates started to rise they had the luxury of raising their rates by less. Their rate is not top dog (hasn't been for a while) but it is a good account. I do not begrudge them announcing this rate reduction as everyone expects the BOE to reduce rates in August.

They are there to make money and so are we; hense if you don't like it move, but be prepared for others to drop their rates.

cloud_dog

zag2me

Dont understand why people are talking about changing accounts because of a 0.25% cut? The cut is because the BOE rate is going to be reduced very soon, not because they are trying to get more money out of you. This will effect all savings accounts, not just ING.