ING Direct offers a range of Cash ISA products to suit the saving needs of its existing and new customers. ING direct offers two cash ISA product; one for its existing and one for the new customers.
Types of ING Direct ISA
For the existing customers, who want to make the most of the tax free ISA allowance of £5,340 for the year, ING Direct offers Cash ISA at a rate of 3.00% AER for the year 2011/12. This includes 2.96% gross tax free for 12 months starting from the date of account opening. The interest is calculated on the daily basis and is paid monthly. The account can be opened with £1 and there is no restriction on the number of deposits made during the year till they reach the annual allowance.
New customers can enjoy the tax free savings at ING Direct through their Cash ISA at a rate of 2.80% AER. This includes 2.76% gross fixed interest guaranteed for the next 12 months starting from the account opening date. Interest payment is done monthly.
For both the accounts, there is no loss of interest or penalty on withdrawals of savings.
Cash Transfers into ING Direct ISAs
Existing customers have the facility to transfer their Cash ISAs of previous years, with any other providers, to their ING direct Cash ISA account. They offer two different transfer products for its customers to choose from.
Fixed Rate Cash ISA Transfer – Money can be transferred to this account for a fixed period of 12 months at an interest rate of 3.0%. Interest is calculated on daily basis; however, it is paid at the end of the 12 months fixed term. At the end of the term, the amount will revert to standard cash ISA rate of 1% AER gross for the current tax year. Any withdrawals made from this will have to forego its tax free status and you will have to incur a loss of up to gross interest of 90 days. Also, your transfer account will close after such a transaction.
Easy Access Cash ISA Transfer – This is more or less like any other ISA account with tax free interest at 2.75% for 12 months. After this period, it will revert to the standard Cash ISA variable rate at 1% AER. Interest in paid monthly and you can withdraw without worrying about any loss of interest.