Under the deal, 1.5 million ING Direct customers will transfer to Barclays, which will integrate the mortgage and savings businesses into its UK banking operation.
ING Direct has deposits of £10.9bn in the UK and a mortgage book with outstanding balances of £5.6bn as at 31 August.
The move represents Barclays’s first major deal since Antony Jenkins was appointed chief executive to replace Bob Diamond in the wake of the Libor-fixing scandal, where Barclays was fined £290m after some of its derivatives traders were found to have attempted to rig this key interest rate.
Good news for savers
Deposits with ING Direct are protected up to a total of 100,000 euros by the Deposit Guarantee scheme – the Dutch deposit protection scheme.
This means that if ING were to go bust, UK savers would have to apply to the Dutch authorities to get their money back.
ING Direct savers may now be protected by the UK Financial Services Compensation Scheme up to a maximum of £85,000 as a result of the buyout – savers holding more than £85,000 in deposits at the combined Barclays and ING banks should consider switching.
Who else does Barlcays own?
Since January 2010, Barclays has also run the mortgages and savings arm of Standard Life, a business widely known for its pensions and investments products.
In June 2006, it was announced that the Woolwich – originally one of the UK’s largest permanent building societies – was to become the Barclays UK mortgage brand.