ING cutting Savings Maximiser interest rate again

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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.

Lender

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Online Saver (Amounts < $499999)

    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    High Interest Savings Account (< $250k)

      4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Online Saver ($1-$100k)

        0500$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Reward Saver

          000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          BU Savings Account

            Rates based on a savings balance of $10,000. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions and for any applicable fees and charges. Rates correct as of June 28, 2022. 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

            Variable
            More details
            UNLIMITED REDRAWSSPECIAL OFFER
            • 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%
            UNLIMITED REDRAWSSPECIAL 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%
            Variable
            More details
            100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
            • 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
            Variable
            More details
            NSW/VIC/SA METRO & INNER REGIONAL AREAS
            NSW/VIC/SA METRO & INNER REGIONAL AREAS

            Variable Home Loan (Principal and Interest)

            • $5000 Cashback. T&Cs Apply.
            Variable
            More details
            REFINANCE ONLY
            • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
            REFINANCE ONLY

            Variable Rate Home Loan – Refinance Only

            • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
            Variable
            More details
            NO ONGOING FEESFREE REDRAW FACILITY
            • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
            NO ONGOING FEESFREE REDRAW FACILITY

            Live-in Variable Loan (Principal and Interest) (LVR < 90%)

            • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

            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. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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 June 28, 2022. 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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