COMMENT
Super Savings Accounts Without Strings!

By Cliff D'Arcy
December 15, 2005

Leading savings bank ING Direct announced this week that it is cutting the interest rate on its hugely popular Best Buy savings account.

From 1 January, ING is cutting its rate by a quarter-point, from 4.75% AER (4.65% gross) to 4.5% AER (4.41% gross). This news won't be welcomed by ING's one million customers, who've benefited from a table-topping rate with no strings attached, backed by excellent customer service. Then again, you could argue that ING is only doing what most other banks have done (making two savings cuts this year), but it's held off doing so for as long as possible.

ING's success in the UK savings market is largely thanks to its commitment to providing high rates of interest, together with easy access, no charges and easy-to-understand products. This no-strings approach means that there are no withdrawal fees and no confusing and complicated short-term bonuses.

So, how does ING's account compare with other no-strings Best Buy savings account? The good news is that it's still a Best Buy, as this table from Moneyfacts confirms:

Best Buy no-strings savings accounts for £1+

Provider and account	Gross rate (%)	AER (%)*
Newcastle BS - Newcastlenet Savings 4	4.90	4.90
Egg - Internet Only	4.50	4.50
Intelligent Finance - Direct Access Savings	4.50	4.50
ING Direct - Savings	4.41	4.50
National Counties BS - Direct Access	4.10	4.10
Direct Line - Direct Access	4.05	4.05

* I explained how to interpret AERs at the end of this article.

In summary, if you're looking for a savings account which is easy to understand, simple to operate and pays a good rate, your search is over. Happy saving!

More: Find a superb savings account today | Avoid paying interest with a 0% credit card!