Some people prefer them, eg pensioners ?
Abbey Branch Saver pays 3% gross on balances under 10,000 based on zero
withdrawals in a year.
Or Nationwide Bonus Saver pays 4.25% gross including bonus. A passbook is
provided. Any withdrawals results in loss of bonus so interest rate reduces
to a rather insulting 1% gross.
Can anyone better that?
In message , Ronald
I'm a pensioner, drawing down from a SIPP and qualifying for the basic
crumblies state pension in July. I've just opened an ING Direct account.
Once the account was set up, I dumped a fairly large sum into it. ING
Direct is a very much a no thrills operation which operates through a
link to a proper bank account. No ATM cards, no postal statements, not
even a paying-in book. Interest is calculated daily and credited to the
account at the end of each month.
To open the account required a link to a normal bank account with a
monthly savings direct debit from that account to the ING account. Their
account set-up software didn't allow that bit to be circumvented. I
suppose that now the account is set up, I can cancel the direct debit
savings element. All I wanted was somewhere to dump some money.
In message , Derek F
Thanks, Derek. You've just jabbed a hot needle into something that's
been worrying me. I suppose I could write out full instructions,
complete with customer refs, IB numbers, account nicknames (whatever
they are) passwords etc. Risky! Jf
I jokingly recorded (many years ago) a tape to be played at my funeral and
references on it to offshore accounts. Now I should perhaps update it to
include internet banking and my Betfair account:-) Seriously details of
things like that should be included in wills.
No not nicknames and passwords, just a list of the financial
institutions and account numbers.
When someone dies you just write to the institutions with as much
information as they will need to identify the account and go from there
- the deceased name and address will possibly be enough so the key is
knowing where the money is.
They certainly do not expect passwords, and it would be risky to send
I think you mean no frills. If you want a thrill, I suppose you
should invest in pork belly futures.
You are mistaken, and I know, because I have one too. You don't have
to set up a monthly direct debit for a specified amount each month,
though you may do if you wish. The basic requirement is for a variable
open ended DD, which is for the purpose of making "on demand" transfers.
This is because the normal method of transferring a sum from the "real"
bank account to ING savings account is not to push the money from the
main bank account, but to ask ING to pull it, using the "move money"
button on their menu.
You don't want to cancel it with your bank unless you want to lose
the ability to dump more money into it should the opportunity arise.
You want to cancel the regular pull instruction at ING's end.
In message , Ronald
Raygun writes of ING DIRECT:
Many thanks for the enlightenment. It seemed when going through the
on-line hurdles that a direct debit link was required.
That makes sense. I suppose their request to start the account by
sending them a cheque meant that the cheque also served as an element in
proof of identity.
Succinctly put. Your plain English 'push-pull' abilities are needed by
the bank. None of the above was made that clear on their website.
As someone commented earlier, I await with interest (sic) to see if
ING's rates have a 'honeymoon' period and are allowed to stagnate
through several interest rate rises. One cannot help wondering how much
they've soaked up from other banks.
NB: I needed to query by phone last week the non-appearance in the
account of a cheque I'd posted to them. I got through to an extremely
helpful, English-accented chap who said that they had suffered a slight
hiccup and not to worry because "I have a scanned image of the cheque in
front of me". From his comment, I presume that they scan cheques
received by post for answering queries like mine. I can't believe that
OCR has advanced sufficiently to be able to read some of the scrawled
cheques I receive.
[Text interleaved/in conversation order: read to end for all comments]
begin quote from Ronald Raygun in uk.finance
about: Re: Passbooks .........
I've found it seems to be faster to make deposits by setting up a bill
payment or regular transfer option from your main account into the ING
account, as the ING DD doesn't seem to kick in on the same day, and then
once it does occur, the deposit takes several days to "clear"; whereas a
funds transfer vanishes immediately and then turns up, ready for use,
in the ING account two days later.
And equally importantly, you'll have no way of making withdrawals from
the ING account if you cancel the DD!
It is. But it doesn't have to be for regular specified amounts.
Indeed. Oddly enough they don't seem to require anywhere near as
much ID as a normal bank would. That's why, I reckon, they need
this "link" to a "proper" bank account.
I had assumed that the *only* way to put money in was to ask them
to pull it by DD from your proper account, and that they did not
need the infrastructure to deal with postal deposits. Unfortunately
it seems I was mistaken. It's fuddy-duddies like you who'll be
responsible if rising costs force them to cut their honeymoon rate.
Best stick with the High Street, old chap, with those well-endowed
instant-access dolly birds.
It's too traditional. With-it folk operate their fancy account by
letting their finger dance across their keyboard, not by writing a
cheque and posting it [and if it's someone else's cheque payable to
them, they "launder" it through their trad account first].
As I said, I misunderstood and originally assumed the only way the
ING account could be fed was by transfer from the linked "real" bank
account, and that the consequent ability to dispense with the
"traditional" cheques-and-cash-in processing facilities would help
keep their costs down and depositor interest rates high.