ING : A Bit Disappointing (ING Direct)

Member Name: tor0908

Product:	ING Direct
Date:	09/06/09 (141 review reads)
Rating:

Advantages: Monthly interest, easy to transfer

Disadvantages: Transfers take too long to clear, disappointing rates of interest for existing customers

I have held accounts at ING for several years now, after being recommended by an independent financial advisor. At the time the rates were quite high (around 6%) and it made sense to take advantage of them.

Unfortunately now the credit crunch has hit hard, interest rates are ridiculously low and I've withdrawn all my funds from ING as the savings rates on offer right now are not good enough.
ING direct is quite a good account if you can get the new customer bonus interest rate. 2.75% for instant access with no penalties is not a fantastic rate but it is one of the best on the market today. At 3% the cash ISA is also one of the most competitive rates, again if you're a new customer.

If you are an existing customer it's a different story. 0.50% on the basic savings account and 1.49% on the Cash ISA. The catch with the ISA is if you are an existing customer after the 12 months they don't allow you to invest any more money in to the account you have already got, you have to open a new one. It seems that this effectively restricts your interest as you are not getting the interest on a larger amount, you are only getting it on a maximum of £3,600. Having said that I'm not sure what rate ING would have offered me on an ISA as I decided to invest this year's allowance elsewhere.
It is easy to move your money between accounts once a direct debit is set up and interest is paid monthly so you can see quite quickly how much it is earning. What I don't really like is that it takes three days for the money to arrive in your account and a further three or four days for your money to be cleared.

I am also concerned by the fact that these online accounts are only covered by the Dutch compensation scheme. I was caught up in the icesave fiasco and my claim was dealt with quickly and it was relatively easy to get my money back. I don't know how easy it would be if I had to deal with Dutch government myself with no help from the FSA.

While ING have been a decent online savings bank I am disappointed by their rates for existing customers and based on past experience with overseas owned banks I am keeping my money in this country for the time being.

Summary: Have been happy in the past but won't save there until rates go up.