The bonus savings account, made popular by Scott Pape’s bestselling book The Barefoot Investor, will have its base rate lowered from 0.75% to 0.50% while the bonus rate of 1.80% will remain the same.

It will mark the second 25-basis-point interest rate cut in three weeks for the account, after its base rate was cut from 1.00% to 0.75% on 17 June.

Tomorrow’s cut will lower the maximum interest rate on the account to 2.30% p.a. – down from its current 2.55% p.a. and 50 points lower than the 2.80% p.a. it was in May.

This will be only one percentage point (100 basis points) higher than Australia’s current annual rate of inflation, which currently stands at 1.30%.

To earn the bonus rate of 1.80%, customers must still:

  • Deposit at least $1,000 per month
  • Have a linked Orange Everyday bank account
  • Make 5+ card purchases with their linked account

The 9 July 25-basis-point cut will happen nine days before ING’s 20-point cut on its variable home loans becomes effective on 18 July.

It was a similar story last month, with the Savings Maximiser cut taking place on 17 June – eight days before the home loan rate cuts on 25 June.

As referred to in The Barefoot Investor, ING’s Savings Maximiser account has been known to consistently offer one of the highest interest rates on the market for savers.

But tomorrow’s rate cut could see its rate slide further behind a number of other accounts on the market.

However, other banks are also likely to reduce savings account rates this month – the question is, by how much?

Most are expected to reduce rates by the full 25 basis points, however CommBank last week announced it would only cut the rate of its NetBank saver accounts by 15 basis points.

Some may even cut by more than the cash rate cut, as we saw last month when UBank cut the rate of its ‘USaver’ accounts by 27 basis points.

At the time of writing, these are some of the highest savings account interest rates currently available in Australia (note these rates could fall in the coming weeks):

Provider

02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Download the App to open your account
  • No monthly fees on any of your Save accounts
  • Deposit $200 per month to activate bonus interest

Save Account

  • Download the App to open your account
  • No monthly fees on any of your Save accounts
  • Deposit $200 per month to activate bonus interest
010000$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

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 June 24, 2024. View disclaimer.