August 13, 2007
ING Reduction in Rates - Hot Topics Q&A
Q. I think I am being conned! Some 3 years ago when I retired, I put large amounts of cash in my wife`s name with ING Bank. I seem to remember that the interest rate was excellent, and to be frank I did not pay this the attention it has obviously warranted. This is because their rate is now 5% gross, when there are rates available at 6% plus.
Why have ING reduced their rates?
A. You are right in feeling hard done by. ING entered the market a few years ago, attracting a lot of investment by offering very competitive rates of interest on their deposit account.
We ourselves were happy to recommend ING, as for a time they put their rates up when the Bank Of England raised interest rates. However, it seems that once they had attracted the amount of money they wanted (in the last year or so) they have simply not raised their rates at all, or by lower amounts.
I suppose we must always remember that banks work for themselves and shareholders, not for us!
We recommend you switch to an account paying 6% plus. Try http://www.moneyfacts.co.uk/savings/bestbuys
One tip is to not close the old account completely, in case it becomes competitive again. Than you can simply switch back easily.
Filed under Investing, Q&A by Ray Prince
