ING makes offer to ex-Kaupthing savers

by Gill Montia

Story link: ING makes offer to ex-Kaupthing savers

ING Direct is making offers to customers that were transferred to the Dutch e-savings provider from Kaupthing, when the Icelandic bank collapsed last October.

Around £2.5 billion in savings with Kaupthing Edge and 160,000 customers were rescued by ING which says it has now fully integrated the accounts.

ING is therefore making two offers to those who wish to remain its customers and has set a deadline of 9th March for decisions.

Ex-Kaupthing customers can either remain in an account with a gross savings rate of 1.98% and a guarantee that the rate will be at least 0.3% above base rate, until 2012.

Alternatively they can move to an account paying the same rate but with a 2.02% bonus over six months after which a 2% variable rate applies.

Kevin Mountford, head of banking at moneysupermarket.com, comments: “4% is not bad at all in today’s market, even with a bonus” but adds that it is vital savers remain vigilant and that those opting for the bonus account should make a note of when the bonus ends.

At the time of the Icelandic banking crisis ING also took on board 22,000 savers with Heritable Bank, a UK subsidiary of Landsbanki.

These customers have yet to be integrated into ING’s systems but will eventually receive a similar offer.