In an email sent to customers, ING, which eased bonus interest requirements in the pandemic's early stages, announced as of Friday (25 September), it would be cutting the total variable rate on its Savings Maximiser account.

According to ING, it will be cutting its total interest rate by 15 basis points to 1.50% p.a, down from 1.65% p.a. 

It comes less than two months since ING cut the rate down to 1.65% p.a. from 1.80% p.a.  

The cut applies to the conditional bonus rate of 1.40% p.a, while the base rate remains unchanged at just 0.10% p.a. 

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest non-introductory and introductory interest rates on the market.

Provider

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace

Savings Account (Amounts < $250k)

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
*Rate varies on savings amount
  • Deposit $500 per month to get bonus interest
  • 5.50% p.a. available on total savings up to $100k.
  • 5.00% p.a. applies to savings between $100k-250K.
  • Tiered bonus rates apply. (TMDs at ubank.com.au)
*Rate varies on savings amount

Save Account (>$100,000)

  • Deposit $500 per month to get bonus interest
  • 5.50% p.a. available on total savings up to $100k.
  • 5.00% p.a. applies to savings between $100k-250K.
  • Tiered bonus rates apply. (TMDs at ubank.com.au)
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month

Savings Maximiser (<$100k)

  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
40501$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Earn up to 5.25% p.a. interest on balances up to $1M. T&Cs apply.

Reward Saver (< $1M)

  • Earn up to 5.25% p.a. interest on balances up to $1M. T&Cs apply.
05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Goal Saver

    0200$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    Bonus Saver Account (Amounts < $250k)

      010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
      For customers aged 14-35 years
      For customers aged 14-35 years

      Future Saver Account ( < $50k)

        010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Boost Saver

          Important Information and Comparison Rate Warning

          All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of July 20, 2024. View disclaimer.

          "We're doing this so we can adapt to changing market conditions while maintaining our customers' needs," ING said. 

          "But we're proud to say that our highest interest rate is still one of the most competitive around, so that we can keep helping your savings grow."

          The conditions required to earn the bonus interest rate also remain unchanged, requiring customers to: 

          • Deposit at least $1,000 from an external bank account to any personal ING account in your name; and
          • Make 5+ card purchases that are settled (not pending) every month. 

          INgSep25

          Source: ING. 

          In other savings account news, neobank 86 400 last week halved its maximum deposit limit for savings accounts. 

          Cut could be preemptive of an October cash rate change 

          The decision by ING to cut its Savings Maximiser rate now could be indicative of a cut to the cash rate in October, although it's worth pointing out that many savings account rate changes have taken place since the cash rate was last cut in March

          In a speech on Tuesday, Reserve Bank deputy governor Guy Debelle hinted at negative interest rates and other 'interventions' to assist the economy.

          "In the short-term, they (negative interest rates) can contribute to a lower exchange rate," he said.

          "In the medium term, the effectiveness can wane including through the effect on the financial system.

          "Negative rates can also encourage more saving as households look to preserve the value of their saving, particularly in an environment where they are already inclined to save rather than spend."

          This caused major banks Westpac and NAB to forecast a 15 basis point rate cut in October, which would take the rate to a new record low of 0.10%. 

          "In a speech yesterday the Deputy Governor of the Reserve Bank gave a fairly clear hint that the Board is set to cut the cash rate and other key policy rates at its October Board meeting," Westpac Chief Economist Bill Evans said. 

          "The theme is likely to be, as we saw in March, a Team Australia moment where the Reserve Bank is directly supporting a bold Federal Budget.

          "The prospect of the RBA “sitting back” to assess the Budget, which has been seen as the “norm” in previous years is not appropriate for these unique times." 

          Should the RBA indeed cut the cash rate further before the end of the year, it's likely savings account rates will fall further. 

          Looking to compare low-rate, variable home loans? Below are a handful of low-rate loans in the market.

          Lender

          VariableMore details
          4.6 Star Customer Ratings
          • No monthly or ongoing fees
          • Unlimited free redraw
          • No application fee
          4.6 Star Customer Ratings

          loans.com.au – Variable Home Loan (LVR < 90%)

          • No monthly or ongoing fees
          • Unlimited free redraw
          • No application fee
          VariableMore details
          Apply In Minutes
          • No application or ongoing fees. Annual rate discount
          • Unlimited redraws & additional repayments. LVR <80%
          • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
          Apply In Minutes

          Unloan – Variable Rate Home Loan LVR < 80%

          • No application or ongoing fees. Annual rate discount
          • Unlimited redraws & additional repayments. LVR <80%
          • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
          VariableMore details
          Unlimited Redraws
          • No annual fees - None!
          • Get fast pre-approval
          • Unlimited additional repayments free of charge
          • Redraw freely - Access your additional payments when you need them
          • Home loan specialists available today
          Unlimited Redraws

          ubank – Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

          • No annual fees - None!
          • Get fast pre-approval
          • Unlimited additional repayments free of charge
          • Redraw freely - Access your additional payments when you need them
          • Home loan specialists available today
          Important Information and Comparison Rate Warning

          Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 20, 2024. View disclaimer.