ING calms Heritable Bank and Kaupthing Edge savings account customers

15 October 2008 / by Rachael Stiles
ING Direct has moved to calm the nerves of savers who are worried about the safety of their savings with collapsed banks Kaupthing Edge and Heritable Bank, both of which have been taken over by the Dutch ING Group.

ING Direct has signed an agreement with the UK Treasury to acquire the savings arms of the nationalised Icelandic banks Kaupthing Edge and Heritable Bank – taking on £2.5billion deposits belonging to Kaupthing Edge's 160,000 savings account customers, and 22,200 Heritable customers with deposits of £538million.

Despite this agreement, however, British savers are still concerned about the safety of their money. ING Direct has offered reassurances that their money is safe and they can still access their accounts through the normal channels – online or via telephone – but with the added bonus of the Dutch National Bank's Deposit Guarantee Scheme which covers depositors for up to €100,000 (about £77,700), and twice that amount for joint accounts.


ING Direct has also assured Kaupthing Edge and Heritable Bank customers that, unlike the Icelandic banking system which is being nationalised, ING Direct is in "a position of strength". And with £1trillion in assets and 85 million customers worldwide, 21 million of which are ING Direct savings accounts customers, it looks unlikely to fail as other banks have done.

The Netherlands' equivalent to the Bank of England – De Nederlandsche Bank (DNB) confirmed to the Daily Mail that "Deposits of UK clients with UK branches of Dutch savings banks are covered by the Dutch deposit guarantee scheme".

Johan de Wit, CEO of ING Direct UK, said "We are very pleased to have been able to take such rapid and decisive action that has provided Heritable Bank's customers, and those of Kaupthing Edge, with the reassurances they need.

"We are working to rapidly ensure that it is business as usual for all customers. We look forward to extending our approach of offering simple and straight-forward products backed by award-winning customer service to our new customers."

© Fair Investment Company Ltd