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
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 $1,000 + each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • No account fees
  • Total ongoing variable rate of up to 5.20% pa by depositing $1,000 in the previous month
  • Easy access to your money

Saver Account (<$250k)

  • No account fees
  • Total ongoing variable rate of up to 5.20% pa by depositing $1,000 in the previous month
  • Easy access to your money
4000$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
  • A great base interest rate of 4.75%

Savings Account (Amounts < $250k)

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • A great base interest rate of 4.75%
05001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Maximum Age - 24
  • $0 monthly account fee
  • Earn bonus interest

Goal Saver

  • Maximum Age - 24
  • $0 monthly account fee
  • Earn bonus interest
02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
No monthly fees
  • Download the App to open your account
  • Get better visibility of your spending within App!
  • Deposit $200 per month to activate bonus interest
No monthly fees

Save Account

  • Download the App to open your account
  • Get better visibility of your spending within App!
  • Deposit $200 per month to activate bonus interest
0200$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • No fees or penalties for withdrawing money
  • Savings guaranteed up to $250,000
  • Maximise your savings and reach your goals faster with Auto-Savings

Bonus Saver Account (Amounts < $250k)

  • No fees or penalties for withdrawing money
  • Savings guaranteed up to $250,000
  • Maximise your savings and reach your goals faster with Auto-Savings
010000$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 December 10, 2023. 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
      Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase
      • Immediate cashback upon settlement
      • $2000 for loans up to $700,000
      • $4000 for loans over $700,000
      Online ExclusiveUp To $4K Cashback Includes NOV RBA Rate Increase

      loans.com.au – Variable Basic Cashback Home Loan (Principal and Interest) (LVR < 70%)

      • Immediate cashback upon settlement
      • $2000 for loans up to $700,000
      • $4000 for loans over $700,000
      VariableMore details
      Refinance OnlyApply 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.
      Refinance OnlyApply In Minutes

      Unloan – Variable Rate Home Loan – Refinance Only

      • 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
      • Up is 100% owned by Bendigo Bank.
      • Up to 50 offset accounts
      • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

      Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

      • Up is 100% owned by Bendigo Bank.
      • Up to 50 offset accounts
      • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
      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 December 10, 2023. View disclaimer.