- ING has launched a new Savings Booster savings account with a welcome rate of up to 6% p.a.
- It will apply to new-to-ING customers on balances up to $500,000
- To get the top rate and ongoing rate of 5.40% p.a., customers must grow their account balance by $100 a month (excluding interest)
The Dutch-owned online bank launched its new Savings Booster on Monday, making its mark with a 6.00% p.a. introductory rate for new-to-ING customers.
The eye-catching variable rate will apply for four months on balances up to $500,000, provided account holders grow their balances by $100 or more each month (excluding interest).
Here's a summary of how the interest payable will be calculated:
| Rate | Details |
| Welcome rate - 0.60% | Payable for first four months on balances up to $500,000 |
| Boost rate - 3.15% p.a. | On balances up to $500,000 when balance is grown by $100 or more each month (excluding interest) |
| Base rate - 2.25% p.a. | On balances up to $2 million |
| 0.00% p.a. | On balance portions over $2 million |
See also: The different types of savings account interest rates
After the introductory rate expires, the ongoing rate will be 5.40% p.a., provided the account balance grows by $100 a month, excluding interest.
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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 | Promoted | 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 |
How does the Savings Booster compare to other ING products?
ING touts its new "flagship" Savings Booster as the biggest change to its savings products in 18 years, joining its current savings offerings.
ING's no-strings Savings Accelerator currently pays a variable 4.80% p.a. interest on balances up to $2 million and 2.70% p.a. on balance amounts over $2 million up to $5 million.
Its Savings Maximiser pays a top rate of 5.50% p.a. on balances up to $100,000, but comes with a several conditions attached.
These include having an Orange Everyday transaction account and:
- depositing $1,000 or more from an external source to an ING product (including home or personal loans)
- making five or more settled (not pending) card purchases a month
- growing the Savings Maximiser balance (excluding interest)
Customers who fail to meet the requirements receive the standard variable rate of 0.01% p.a.
How does Savings Booster compare with the market?
The ongoing Savings Booster rate of 5.40% p.a. (with a $100 monthly balance growth requirement) pips Judo Bank's 5.35% p.a. payable on balances up to $250,000 with a monthly deposit of $300.
However, Judo doesn't impose a balance growth requirement, rather a monthly deposit without withdrawal restrictions.
Ongoing rates for savings accounts with no conditions include:
- Macquarie Bank savings account - 5.00% p.a. on balances up to $2 million
- Bankwest Easy Saver - 5.00% p.a. on balances up to $250,000.99
- AMP Bank GO Save - 5.10% p.a. on balances up to $500,000
See also: AMP GO Save announces new interest rate set up
The Savings Booster is the first savings account rate with a '6' in front since member-owned The Mutual Bank offered 6.00% p.a. on its Internet Saver account on balance amounts between $50,000-$100,000 for a five-month period from September 2024.
Prior to that, 2013 was the last time Australia saw a savings account interest rate that began with a '6'.
Why is ING introducing another savings product?
It's notable ING's new savings offering comes with only one condition to achieving its top interest rate.
In recent years, customers have been voting with their feet in favouring no-strings or low-conditions savings products that pay a decent interest rate - and the market is responding.
Macquarie Bank has been steadily stealing household deposit market share from the big four with its simple, no hoops savings account offering.
In its full-year results released in May, Macquarie reported its deposit book achieved 25% growth over the previous 12 months, compared to the industry-wide growth rate of 8%.
Similarly, AMP Bank's no-condition, online GO Save account was forecast to attract more than $1.5 billion in customer deposits in just its first year (alongside six and 12-month term deposit products in the GO digital portfolio).
ING's new Savings Booster offers a 'middle path' between ING's conditional Savings Maximiser and its no-conditions Savings Accelerator where the interest rate doesn't quite mix it with similar no-strings products on the market.
It's notable the new major product offering comes at a time when credit demand is slowing, perhaps sparking banks to polish up their deposit offerings in a bid to attract new money coming in the door.
Deposits can be a considerably cheaper source of funding than wholesale finance markets.
To get the four-month introductory rate, Savings Booster customers must be new to ING and require an active and unrestricted Orange Everyday account in the same name.