I am interested to know if Coventy BS pass on the increase at full rate on
their online account "Guaranteed to pay 4.3% and no less than base rate
until 30 Sept 2004", as far as I can see ING is still the top paying instant
access account even with only a 0.2% increase]
In message , John
Actually, if ING were to pass on the full effect of the BoE .25% per
annum interest rate rise then their AER would rise by about .25023%
because the BoE applies interest quarterly.
To be fair, Didn't ING lower their rates by less than the rate change
when it went down?
On the subject of ING, why do ING need a cheque to set up the acc
(well yes so they can set up a DD to move money in and out, hey but
your utility companies don't want a cheque to do that!). It is not
for ID as They check Experian for that.
I ask because the cheque I sent them, has, apparantly got lost in the
post. The account is not opened. I have to stop the cheque (£12)
thus wiping out any potential interest rate benefit for a long while!
(I switched from Norhtern Rock Tracker Online, for which I signed up
for a week before they introduced the intro bonus, grrr). Now NR
didn't require a cheque, and I am sure Egg doesn't either. I moved
money into that account online (thouugh BACs) and withdrew it in the
same way. I can only assume that the DD method is cheaper than BACS,
despite having to handle everyones initial deposit by cheque! and set
up the DDs!
I wish I had never switched!!!
Haven't cancelled the cheque (yet), but assume that I will be charged
as the cheque isn't stolen (well it could have been)
It is a Barclays cheque, (£10 for cancellation) doesn't even mention
stolen cheques are cancelled for free.
I emailed them with my question above and the reply was something like
(or the same as being in the T+Cs of their website:
"Thank you for contacting ING Direct.
ING Direct are a direct bank, this means we operate our customers
accounts via the Internet and telephone.
Direct banking enables us to keep our costs low and interest rates
When you open an account with us, an electronic link between your
current account and ING Direct is set up.
This enables you to move money between your ING Direct savings account
and your linked account whenever you want. In order to set
this up we ask for the opening deposit to be drawn by cheque from
designated linked account. This will allow us to validate the link
between your two accounts and will also be used to help us identify
you to ensure that your money is kept secure.
Our product has been designed specifically to be a low risk savings
product and has been approved by the FSA and the Legal Council.
If you have any further queries regarding your ING Direct Savings
Account, please contact us on 0845 6038888."
Okay how about this one - HSBC. They charge 7.50 to stop any cheque unless
it's been stolen. Being lost in the post doesn't count. I appealed to my
local branch here in York (Parliament Street) but they incinuated that they
were being told from higher up in the chain that we can't reverse charges in
more and more cases, regardless of if the cheque was lost in the post or
OT: I am actually getting rather annoyed with "customer services"
quite clearly (see above!) cut and pasting a mildly relevent 'answer'
to your emailed query. Maybe I should start phoning them up and get
used to greensleaves(?) once more :-). I don't have a habit of
contacting customer services, but I am having particular trouble of
If anyone does have a clue (as ING don't seem to) as to why they
actually need a cheque I be very interested... ;-)
In message , James
It is a result of *their* interpretation of Money Laundering rules in so
far as the cheque is evidence of the source of funds, whereas a DD is
quite the same.
Also it is quicker from their point of view to process to collect the
first investment and there can be no mistake on their part because the
customer has written out the cheque.
I can't quite see how "whereas" is appropriate in this context.
But yes, that's exactly right. Unlike other banks, which require
documentary evidence of address and of identity when you wish to
open an account, for ING a cheque is enough. Essentially they're
piggy-backing on your existing bank's compliance with the laundry
In message , Ronald
Oh dear, my mistake. The word "is" should have been "isnt"!!!!!!!!!!!
Not quite. Money Laundering places an obligation on the deposit taker to
record the source funds. A copy of a cheque is irrefutable, whereas a DD
mandate is somewhat vague.......
I would have thought they'd be pretty well equivalent. I don't know
the intricacies of how the clearing system works, but if a receiving
bank attempts to collect a sum by DD from account 01234567 at branch
12-34-56 in the name of Miss Olive Oyle, and the money does in fact
turn up after they've typed in the details, this is surely adequate
evidence that the source of funds is the account in question, even
if the drawee bank's clerk didn't check to make sure the name
matches and the account holder is in fact Popeye the Sailor Man.
I can see how the cheque can be a smidgeon tidier because it does
actually show the account holder's name. I can also see that once
they have a copy of the cheque on file they can accept further
deposits by DD if from the same account as the cheque.
Nevertheless, the cheque could have been forged (e.g. by having
the account holder's name altered, which might well go unnoticed
at the draweee bank). I'm not quite sure why a depositor would
wish to do this since the source of funds into the ING account
would still be traceable via the account number, and for the same
reason I don't really see why a cheque is *really* any stronger than
just any old account number on a DD.
But ING certainly *are* piggybacking. They do not require any of
the usual documents for opening an account. I know because I opened
one myself quite recently.