ING will cut its savings account interest rates from Tuesday 19 August, taking the rate for its popular Savings Maximiser account down to 4.80% p.a. (from 5.00% p.a.).
The 20-basis point cut will come from the bonus rate - 4.75% p.a. (down from 4.95% p.a.) - while the base rate of 0.05% p.a. will remain unchanged.
The Savings Maximiser product is one of the few on the market that was still offering a savings account rate of 5.00% p.a. or more.
However, the rate of 4.80% p.a. for customers meeting eligibility requirements may remain attractive on the market, with other competitive savings products yet to pass on the August cash rate cut.
Most of the highest savings rates on the market come on accounts with conditions attached, meaning customers need to ensure they meet monthly requirements to be eligible for the maximum rates.
Other ING savings changes
ING's Savings Accelerator, popular among those with higher deposit amounts, will also see rates cut.
The maximum rate on deposits of $150,000 or more will drop 25 basis points to 4.70% p.a. (down from 4.95% p.a.), including an unchanged, additional 0.75% p.a. 'kickstarter' rate.
The kickstarter is a four-month introductory rate for new customers on balances up to $500,000.
The new Savings Accelerator rates are as follows:
| Balance amount | Standard variable rate | Old rate | With 0.75% p.a. kickstarter | Old rate with kickstarter |
| $0 - $50,000 | 2.10% p.a. | 2.35% p.a. | 2.85% p.a. | 3.10% p.a. |
| $50,000 - $149,999.99 | 3.00% p.a. | 3.25% p.a. | 3.75% p.a. | 4.00% p.a. |
| $150,000 and over | 3.95% p.a. | 4.20% p.a. | 4.70% p.a. | 4.95% p.a. |
ING's Savings Accelerator product is notable for increasing interest rates on higher balance tiers, with many other savings accounts reducing them as balances grow.
What is happening with other savings account rates?
Some popular high-interest savings accounts are holding fire on announcing interest rate changes in the wake of the August rate cut.
These include Rabobank with its maximum rate of 5.15% p.a. and NAB's Ubank, offering 5.00% p.a. - both introductory rates for new customers followed by conditional ongoing rates.
NAB cut rates on its deposit products on Friday 15 August but did not announce changes to Ubank savings rates.
Interest rate changes on deposit products generally take some time to filter through after Reserve Bank cash rate movements with some deposit-takers choosing not to publicly announce them.
However, these may be passed on directly to customers.
Savings.com.au is keeping a watch on Which banks are lowering interest rates after the August cash rate cut?
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Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
0.05% p.a. Bonus rate of 5.30% Rate varies on savings amount. | 5.35% p.a. | $1,097 | – | $0 | $249,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
2.25% p.a. Bonus rate of 3.15% Rate varies on savings amount. | 6.00% p.a. Intro rate for 4 months then 5.40% p.a. | $1,134 | 4 months | $0 | $499,999 | $0 | $0 | $0 | Disclosure | ||||||||||
4.00% p.a. | 5.90% p.a. Intro rate for 4 months then 4.00% p.a. | $936 | 4 months | $0 | $249,999 | $0 | $1 | $0 | Disclosure |
