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BM challenges ING with its new direct savings account

Birmingham Midshires has launched a new direct savings account with a rate of 4.75 per cent, looking to challenge the likes of ING.

The account has been launched with the promise that it will pay 0.25 per cent more than the popular ING Direct Savings account until 1 August 2008.

But warns that conditions in the small print may not provide customers with as good a deal as they would have hoped. head of news and press Andrew Haggar says: “The link to an established and extremely popular account such as ING is an interesting marketing approach, and although Birmingham Midshires will undoubtedly woo savers currently receiving a much poorer rate of return, I’m not sure how many people will defect from ING. Whilst the interest rate is a quarter of a point higher than ING, in monetary terms this means an additional £12.50 worth of interest gross in a year for somebody with a £5,000 credit balance.

“This said, it is certainly refreshing to see another player in the savings market introducing a ‘no strings’ account paying a decent rate of return, rather than launching an account offering a seemingly high rate of interest, but only to disappoint consumers when they discover prohibitive conditions hidden in the small print.”


Support for IFAs and FSA

IFAs fulfil an invaluable role for small and medium-sized investors and are unfairly criticised because of the actions of a few, says New Star chairman John Duffield. He says the big banks are not as interested in the smaller investor, who he believes will suffer if IFAs are squeezed out of the market. He says: […]

Means-test could scupper NPSS

Pension personal accounts risk becoming a “disastrous failure” unless the Government scales down means-testing and removes doubts over the scheme, says LibDem Shadow Work and Pensions Secretary David Laws. He says the issue of means-testing is his main concern because it has the potential to wipe out the benefit of employer contributions and make the […]

Regulator’s reviews open up claims, says Cummings

Association of Mortgage Intermediaries director general Chris Cummings has blamed the regulator for the emergence of claim management companies in the mortgage sector. He believes the plethora of announcements into reviews on different market sectors encourages consumers to claim compensation and be put off products, even if no problems are uncovered. Loancheck intends to set […]

Data divide

Client information: Nicola York reports on the battle between brokers and lenders over releasing clients’ data


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