Barclays has announced plans to purchase ING Direct UK from the Dutch bank ING, this will result in 1.5 million customers transferring to Barclays.
So how will this move affect current ING Direct UK customers?
The merger requires the approval of the the Financial Services Authority and if granted the deal should be completed by spring 2013. Full integration of systems and products will take longer but Barclays are committed to issuing an 'integration timescale' to all customers. No immediate action is required by ING Direct UK customers.
Once the merger is is approved the ING Direct UK brand will disappear, ING will still operate outside the UK/
Customers who are currently have a fixed rate mortgage or savings then your interest rate will remain unchanged for the remainder of the fixed term. Beyond this term customers will be offered only Barclays products. ING has historically offered competitive rates on their savings products, in a bid to gain market share, whereas Barclays have tended to offer more conservative rates. Barclays mortgages, on the other hand have always been more competitive than ING with a broader portfolio of products.
Currently deposits of up to to £85,000 have been protected under the Financial Services Compensation Scheme (FSCS) whilst deposits with ING, up to €100,000 (£81,000 currently), are covered by the Dutch compensation scheme. However, when the merger is completed all deposits will be covered under the FSCS up to a total £85,000. Customers with in excess of £85,000 of deposits across all accounts are advised to spread their money elsewhere.