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Guest absolutezero

Ing Direct Raise Interest Rate To 5%

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Guest absolutezero

According to an email I got this morning:

"Following the recent Bank of England Base Rate change, we will be increasing the interest rate on your ING Direct Savings Account to 5% AER from 1 June 2007."

Oh dear. I've moved all my money out of ING because they didn't pass on the last couple of rises in interest rates.

5%. Not very competitive, is it?

So why would they pass on this interest rate rise and not the others? Too many people moving elsehwere?

EDIT: Takes effect from 1st June.... Terrible.

Edited by absolutezero

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Oh dear. I've moved all my money out of ING because they didn't pass on the last couple of rises in interest rates.

5%. Not very competitive, is it?

So why would they pass on this interest rate rise and not the others? Too many people moving elsehwere?

Oh dear indeed!!!! I've moved £15k of my savings (into a NS&I index linked bond) because of their dire savings rate and apathy at increasing interest rates. Also because of their underhand tactics of increasing rates for unpublicised web saver accounts (which decreased from 5.65% to 5.5% this month).

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Guest muttley

Firstdirect is 5.25%. Not very good, is it? When I joined interest rates were 4.75% and Firstdirect were offering 5.2%.

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Guest muttley
It was the straw that broke tha camel's back for me. It's done me favour though because I'm now earning 6.15% tax-free which is equivalent to 10.25% gross on the NS&I bond.

http://www.nsandi.com/products/ilsc/index.jsp

There's a maximum of 15k, I believe, plus you have to tie it up for 3 years. If that suits you then it must be the best on the market.

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Big picture, guys. 0.5% here or there is immaterial. ING's marketing to stay competitive - not the best. It is and it saves people having to switch every couple of months. For most that is what they want.

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There's a maximum of 15k, I believe, plus you have to tie it up for 3 years. If that suits you then it must be the best on the market.

I believe you can take it out after a year and receive that years interest without penalty. I.e. interest is calculated and paid annually.

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Big picture, guys. 0.5% here or there is immaterial. ING's marketing to stay competitive - not the best. It is and it saves people having to switch every couple of months. For most that is what they want.

0.5% when you've got 200 grand parked in one of their accounts is a hell of a lot! Icesave is the way to go - no bulls!t introductory bonus that vanishes after 6 months. First bank to raise savings rates to 5.95% as of next week, too... ;)

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0.5% when you've got 200 grand parked in one of their accounts is a hell of a lot! Icesave is the way to go - no bulls!t introductory bonus that vanishes after 6 months. First bank to raise savings rates to 5.95% as of next week, too... ;)

If you want to spend your time eeking out an extra 0.5% on the year by switching often then fine: '... it saves people having to switch every couple of months. For most that is what they want.'

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It was the straw that broke tha camel's back for me. It's done me favour though because I'm now earning 6.15% tax-free which is equivalent to 10.25% gross on the NS&I bond.

http://www.nsandi.com/products/ilsc/index.jsp

I have looked at the NS&I 3 year bond but can't quite work out when the RPI inflation figure is added to the 1.35% interest it pays. Is it at the time of purchase? and the 6.15 figure is fixed for a minimum of 1 year or 3 if you don't want to cash it in.

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There's a maximum of 15k, I believe, plus you have to tie it up for 3 years. If that suits you then it must be the best on the market.

The maximum is £15k but I'm not sure if you can have several.

It's tied in for 1 year at least (or you lose any interest if you take it out) but after that, interest is calculated and paid monthly.

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Big picture, guys. 0.5% here or there is immaterial. ING's marketing to stay competitive - not the best. It is and it saves people having to switch every couple of months. For most that is what they want.

The trouble is you lose bloody interest everytime you switch. About 5 or 6 days, more if a weekend is involved.

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With real inflation running at 7%pa what good is putting cash into a savings account that returns a very low rate?

Are you looking at liquidity, or just happy to line Gordons Pockets a little further?

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I have looked at the NS&I 3 year bond but can't quite work out when the RPI inflation figure is added to the 1.35% interest it pays. Is it at the time of purchase? and the 6.15 figure is fixed for a minimum of 1 year or 3 if you don't want to cash it in.

Have you looked here?

http://www.nsandi.com/products/ilsc/rates.jsp

The 6.15% figure is a 'calculated equivalent' figure given that RPI is 4.8% and the compounded other % which is calculated at 1.35%.

i.e. 4.8% + 1.35% = 6.15% tax free.

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With real inflation running at 7%pa what good is putting cash into a savings account that returns a very low rate?

Are you looking at liquidity, or just happy to line Gordons Pockets a little further?

I presume that's aimed at accounts like ING and the like.

Not having to pay GB tax on my savings is one of the reasons I decided to go for these ILSC.

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