Banks look to target ING's 14,000 frozen funds clients

ING ANZ Frozen Funds Groups spokesman, Gerard Prinsen, says he has spoken to one bank that is looking at such an offering, while group members have spoken to two others. All three are said to be considering launching rivals to the 8.30% account that ANZ is providing as part of the options presented to investors in ING's frozen Regular Income Fund (RIF) and Diversified Yield Fund (DYF).

Prinsen says there are 14,000 potential customers in total, less than 3,000 of which are ANZ customers and believes any rival account will be popular.

"I think if the other banks come up with a similar competing offer, many customers will walk," he says.

So far Kiwibank, Westpac and TSB have confirmed they will not be launching such an account. The remaining banks had not confirmed either way at the time of writing.