ING drops rate 4.75% - 1st August

derrick

zag2me wrote:

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.

Yes but why cut it before the BOE drop the rate? They NEVER raise it before the BOE raise the rate

Walletwatch

derrick wrote:

Yes but why cut it before the BOE drop the rate? They NEVER raise it before the BOE raise the rate

Besides, isn't that the advantage of accounts of this nature - while you don't have the comfort of going to a branch and carrying out your affairs, you can earn a high interest by accessing your money online, and at the same time move it at a short notice to another account that gives you a better rate, leaving a £1 balance in the previous one to keep it alive?

alared

zag2me wrote:

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.

As has been pointed out before if and when the BoE cuts rates this will give ING the excuse to cut yet again.

deemy2004

Their rates have to remain competitive or else the money will flow out, especially when their account is instant access.

isasmurf

derrick wrote:

Yes but why cut it before the BOE drop the rate? They NEVER raise it before the BOE raise the rate

Because ING probably invest our money in the money markets which, as I understand it, already have a base rate cut factored in.

derrick

isasmurf wrote:

Because ING probably invest our money in the money markets which, as I understand it, already have a base rate cut factored in.

I see so there is never a rate rise factored in then? and this is not only ING, they are all at it, no BOE base rate cut for 12 months but they are all cutting rates to savers

derrick

deemy2004 wrote:

Their rates have to remain competitive or else the money will flow out, especially when their account is instant access.

Maybe I am reading this wrong, but if their rates stayed high, the money should flow IN

The_Bloodster

I only opened my ING account two months ago and have put in 3500 from the crappy Barclays Openplan. Although I know there is probably better out there but won't I lose interest or something by moving

deemy2004

derrick wrote:

Maybe I am reading this wrong, but if their rates stayed high, the money should flow IN

Competitive against the market place.

Yeh they have cut, but so will the others - very shortly hence their rate will be comparable with the others. So it suggests 4.75% will become the norm rather than the present day 5%

Expect others to cut...

Smitty

The_Bloodster wrote:

I only opened my ING account two months ago and have put in 3500 from the crappy Barclays Openplan. Although I know there is probably better out there but won't I lose interest or something by moving

The only interest you will lose will be the 2-3 days the money takes to leave your ING direct account to your bank, and then the 2-4 days it takes you to move it from your bank to your new account (assuming you have one ready and waiting)