Hi again,

Just thought I'd add that our site editor, Clare Francis, has just published an article on this very subject:

Kaupthing savers given two options

I'm sure you'll find it informative and helpful.

Hi again Chris,

Thanks again for a really good question. We've spoken to ING and the situation is as follows:

With Kaupthing, you were earning around 1.55% above the Bank of England base rate and this moved up/down in line with Bank rate changes. Over the weekend, ING migrated all Kaputhing accounts across to their systems and you are now being offered two choices.

Option 1: move to ING’s standard rate which is 1.98% gross/2% AER and continue to receive the Kaupthing guarantee that the rate will be at least 0.3 points above Bank of England base rate until 2012.

Option 2: give up the 0.3% guarantee but receive a higher rate of 4.0% for 6 months after which you'll earn ING’s standard rate. The 4.0% rate is the standard gross rate of 1.98% plus a 2.02% bonus, so this is variable.

Essentially, it depends on how proactive you want to be. Do you want the security of knowing what your rate will be (in relation to changes in Bank rate) for a set period of time? Or do you want to earn more in the short term in the knowledge that you might have to move your savings in 6 months to get the most competitive rate on the market.

I'm afraid the final decision is really down to you. As is always the case, it's well worth looking around to see what other savings accounts are offering and make sure you check the details of the product very carefully before deciding. You can use our savings comparison tool to check the latest deals.

It's also worth making sure your savings are secure. Clare Francis's article 'Who owns who'? is well worth a read, as are Kevin Mountford's recent articles 'How to choose a savings account' and 'What now for savers?'.

I hope that helps.

Hi Chris,

It's a very good question - let me look into the details and I'll get back to you as soon as I can.

I hope this is going to be read by the expert as I posted a question yesterday. The question is, Ing have sent me the options open to me having taken over from Kaupthing. Option 1 A bonus rate of 4.0% gross - variable for 6 months. After that it will revert to 2% variable. Option 2 To pay at least Bank of England base rate + 0.3% until 2012 - at present Ing Direct savings Account is 2.0%. Please can you advise me on the best deal as at present it looks like Option1. Chris