ING Stooze Pot - 4.75% AER From Aug 1st

YorkshireBoy

ING are the latest to drop their savings rates, with 4.75% AER now payable from August 1st.

Have to admire the way they've done it though, ie fairly reasonable notice and a fairly honest explanation on their web site at https://www.ingdirect.co.uk.

This wouldn't be much of a problem for me in years gone by as all our major savings were in cash ISA's, and we only ever kept a small amount for holidays, etc with ING. However, and with the not so small matter of a £70K stooze pot sat there now, I'm wondering what to do next.

This 0.25% drop will cost me in excess of £100 over a 12 month period (if I can maintain the stooze pot at somewhere near it's current level). The cost of moving it somewhere else though will also be significant with nearly £8/day in lost interest. So, if the transfer through my current account and on to another savings account takes 7-8 days, that'll cost me nearly £60 alone.

Time to go and do some more sums and find another account that has already cut their rates recently and still has a rate which will give me the £60 back over the next 12 months.

Oh, decisions, decisions? What are the other stoozer's plans now our favourite provider has finally cut their rates?

urbanfrit

I use First Direct e-savings account.
5.20% AER with instant access.
Only downside is you don't get interest in any month you make a withdrawal.
And they haven't reviewed their rates recently.....

mountainofdebt

Well that's made my mind up.

Will close my ING account and start transferring into my ICCI account.

Am only using it to save for the mortgage overpayment so the balance will always be less than £500.

Clariman

Have to admire the way they've done it though, ie fairly reasonable notice and a fairly honest explanation on their web site at https://www.ingdirect.co.uk.

Hi YB ... where is it explained on their website ? I looked for an announcement but couldn't see it there.

Clariman

Chadsman

Where it says top left

Welcome to ING Direct UK
With effect from 1st August 2005,
the ING Direct savings rate will be
4.75% AER*.
Click here for more information.

mary

Thanks for spotting the drop with ING. I must say I do like them, quick, efficient etc. I have around £8K left with them, but had £49,999 sitting with Cahoot in their 5.65%. As of today, they have dropped in a handy £2K plus of interest, topping it over the 5.65% I checked with them and found that I will now get 5.15% on the extra. That's good so long as it lasts, and I was told that they will give us at least a month's notice, if they plan to drop the rate. I'm gradually feeding more and more Regular Savers in the meantime. I have 2 x £1K going into the Derbyshire at 5.85%, £500 going into the Abbey at 7%, £250 going into Halifax each month and £500 going into the Principality BS at 6%. I think Leek and Scarborough also have 6% regular savers as well.

So if you are lucky enough to already have Cahoot, keep it there for now, if not try the Regular savers and try to stagger them, so that when one matures, there is another one opening up.

Hobo_2

Mary, don`t forget Dudley BS 7% reg saver £300 pcm max,need to go in branch to set up though.

thor

When the b.o.e. interest rate was going up by 0.25% ING only raised theirs by 0.15% and then 0.10%.. Now they have dropped their rate by a huge 0.25% and there has not even been a rate cut for around a year. It just confirms my suspicions about them that they are not worth the effort anymore. They are head & shoulders below Cahoot who have a much better rate even after the introductory bonus is removed(and even that has been extended)

Stonk

ING have never been at the top of the rates tables, but to their great credit they have been consistently close to the top for over two years. And that is why they have been worth sticking with - you always knew it was not just a headline-grabbing rate for a couple of months.

That has all just changed. 4.75% is simly not competitive enough to keep me, and I suspect many others too. A great shame.

thor

The problem is that the banks operate as a cartel. They'll lower their rates and say that this is what all the other banks are doing. It is hard for me to not suspect that this has not been agreed by them all beforehand.

MarkyMarkD

Oh thor, don't be daft.

The banks are in competition for savings money in the same way they are in competition for mortgages and current accounts.

The fact that one bank reduces its rate when another does is not due to a cartel operating.

It's due to (a) money market rates moving downwards and (b) less competitive pressure due to other banks following the money market rates downwards.

And as has been pointed out on another post, most new entrants like ING operate at a high interest rate to begin with and then reduce it once they've reached their target level of balances.