ING Direct announces rate cut

ING Direct customers may be forgiven for looking to switch to a new provider as the online bank announces that it is cutting its saving rate from 4.75 per cent to 4.5 per cent.

The cut is the second in the last six months from what was once one of the best current account rates on the market.

ING Direct told the Observer that it was cutting its rate due to “less favourable market conditions”.

ING pioneered the “basic” bank account – providing easy access, unlimited deposits and no fees with a reasonable rate of interest. But better rates are now obviously available to anyone who goes online to compare current accounts.

“Savvy investors wanting more than internet-only access and who have £500-plus to save might want to consider Anglo Irish offering 4.8 per cent or Capital One at 4.75 per cent,” said financial analyst Stuart Glendinning.

“For savings of over £100, the Derbyshire at 4.7 per cent is a good choice. With internet-only access, ICICI and First Direct lead the way with rates of 5.15 and five per cent respectively,” he added.

© Adfero Ltd

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