ING increases rate to 5%

A question about : ING increases rate to 5%

Title says it all

Best answers:

• Yes, 5.0% AER, which makes the gross rate 4.89%, and -if I am correct - the net will be 3.90%.
  I still have my fingers crossed for an easy-access introductory-rate-free savings a/c to pay 5% net, perhaps ING will relatively soon .
  Leia
• Leia, Judi and I are happy bunnies!
  5% is what we wanted albeit 5.1% would have made us jump for joy.
• Halifax, the gauntlet has been laid down .
• so, another 0.15% rise. ING are slowly but surely letting the BOE rise catch them up
• I opened an account with Chelsea (now closed for new signups) a month ago which gave 5.25% interest, I thought ING was going to take it apart with this rise, but it didn't and I'm very glad
• A big welcome to the boards Teal.
• Although ING did inform its savers of its intentions early after the last bank rate rise (it got caught out the last time with the loss of a few savers with its not saying anthing policy) it still has not climbed the best saving ladder. With one or possibly 2 more increases before the end of the year it will never catch cahoot etc, although its no frills and monthly interest are attractive at the end of the day its were your money can achieve the best return and its not at ING. It is possible that withholding .1% for the last 3 increases has given them the opportunity to sneak in another increase themselves or am I just kidding myself.
  gary
• I have kept a few pennies in ING because I think that Cahoot may not be as competitive after a year so I'm keeping my options open.
  If the account is still open then it's very easy to transfer your money back if you want to.
• There are actually a couple of good reasons for holding large amounts of cash.
  a) In between investments e.g. sold a house and buying a new one soon so can tie money up.
  b) Elderly people who may not consider it wise to get into long term investments - there's a joke here about not buying long playing records
  On the whole though, I don't think that holding lots of cash is a good idea unless you are a very cautious investor. There are normally better things to invest in even for the cautious.
• I think ING knew it was going to change the AER by 0.15% all along. Don't think they have won any friends by waiting until today. I suspect ING are still losing money and will be under a lot of pressure from their parent company to turn things around. This means they probably will fall further behind as the bank of england rate rises some more.
  The strangest thing though, next year when the BoE drops the rate by 0.25%, I bet ING drops it rate by the full 0.25%.
  Thank goodness I don't have a lot with them at the moment. And thank goodness I'm a tart. ;D
• If you do the transfer on a Monday, it should be in your account at the end of Wednesday.
  With some current accounts you can withdraw the money or initiate a BACs transfer to another account of the cash on the Wednesday, but on others you need to wait until the Thursday.