Money News

ING Direct increases savings rate to 3%

Thursday, 2 July 2009 Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.uk

New customers can get 3% interest with the ING Direct savings account, which has no withdrawal penalties or restrictions.

ING Direct (www.ingdirect.co.uk) has increased the rate on its savings account from 2.75% to 3%, which is guaranteed for 12 months.

“It’s not just the weather that’s been hotting up this week”

The account can be opened with as little as £1 and up to £1million. Savers have instant access to their cash as there are no withdrawal penalties or restrictions and interest is paid on a monthly basis.

After 12 months, the interest rate will revert to the standard variable rate on the account, which is currently 0.5%. ING Direct is covered by the Dutch Depositors’ Compensation Scheme which protects your savings up to €100,000 (approximately £86,000).

Chris Eagle, commercial manager at CreditChoices.co.uk said: “It’s not just the weather that’s been hotting up this week - we have also seen several savings providers boosting the rates on accounts in an attempt to lure in new customers.

“The ING Direct account is particularly attractive as it allows you to access your cash whenever you like, without penalties, so your money isn’t trapped.

“As the battle for your money begins, now is the time to assess your savings and make sure they are in the best place to earn you the highest returns.”