Birmingham Midshires has set out to wrestle ING Direct’s best savings account crown from it with a promise to consistently beat its rivals rates.
The Birmingham Midshires easy-access savings account promises to “consistently beat ING Direct’s savings account by 0.25 per cent” until August 2008.
Before tax, ING currently pays out 4.5 per cent, so the offer will pay out 4.75 per cent on balances of just £1, operable both online and on the phone.
“Birmingham Midshires is trying to ride on the back of the success of ING Direct,” Sue Hannums of Chase de Vere Wealth Management told the Independent.
“It is offering a simple account with a great rate and no bonuses, but it’s going to have to do a lot more to get near to ING Direct’s popularity.”
Despite ING not being at the top of comparison table its “marketers have done such a good job of getting people to think they are getting a fantastic deal”, she added.
Other analysts said that ING Direct customers were unlikely to be swayed, with the quarter-per cent difference only adding £12.50 a year to a £5,000 balance.
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