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ING DIRECT offers cash to switch

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ING DIRECT has thrown down the gauntlet to the major banks, offering borrowers a cash incentive for switching banks.

From today onwards, the second tier lender will give $1,000 to any customer that switches their mortgage to the ING DIRECT and opens an Orange Everyday transaction account before June 2011.

The bank’s chief executive officer Don Koch said the offer would drive competition between lenders in the mortgage space.

“We want people to vote with their feet and switch banks if they are unhappy with their existing banking relationship,” he said.

“If customers become more mobile, banks will be forced to offer better value and better service. Switching banks should be easier and this $1000 is an incentive for people to start the process.”

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