ING cutting Savings Maximiser interest rate again

author-avatar By on September 23, 2020
ING cutting Savings Maximiser interest rate again

Photo by Kaitlyn Chow on Unsplash

ING will soon become the latest bank to cut its savings account rate, ahead of what could be another RBA rate cut.

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.

"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
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 17, 2021. View disclaimer.


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author-avatar
William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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