ING sent an email to customers on Tuesday, telling them the interest rates on their Savings Maximiser would be reduced to “adapt to changing market conditions”.
The total rate on the account will drop from 1.50% to 1.35%, effective Wednesday, 11 November. The changes are as follows:
- The base rate will be cut to 0.05% (previously 0.10%)
- The bonus rate will be cut to 1.30% (previously 1.40%)
Customers can earn the base rate regardless of their saving behaviour, but only earn the bonus interest on balances up to $100,000 when they deposit at least $1,000 from an external bank account to any personal ING account and make five or more transactions each month.
The total cut of 0.15 percentage points to the Savings Maximiser account is equivalent to the amount the Reserve Bank reduced the cash rate by last Tuesday, when the rate was cut to the historic low of 0.10%.
It’s also the fourth time the savings account’s interest rate has been cut this year, by a total of 0.60 percentage points so far.
ING’s cut could be just one of many for savers, whose interest rates are expected to continue trending lower.
Canstar analysis of interest rates on our database last week revealed bonus accounts like this one (where you’re required to meet certain conditions to earn bonus interest) could fall to an average of 0.74% if the full November cash rate cut were to be passed onto savers.
ING is also set to follow the trend of lenders cutting home loan rates by decreasing its owner-occupier fixed mortgage rates for those paying principal and interest from Friday, by between 0.05 and 0.60 percentage points.
How does the new ING rate compare to the market?
Looking at bonus savings accounts on Canstar’s database, our research analysts found ING is still in the top five highest interest rates after Wednesday’s cut to the Savings Maximiser.
The second table shows the top savings account rates of any kind on our database, including those with introductory (promotional) rates which may suit savers who are willing to chase short term offers every few months.
Top 5 bonus savings account rates
|Provider||Account||Base Rate||Bonus Rate||Total Rate|
|MyState Bank||Bonus Saver||0.15%||1.35%||1.50%|
|UBank||USave + USpend||0.40%||1.06%||1.46%|
|86 400||Save Account||0.10%||1.25%||1.35%|
|ME||Online Savings Account||0.10%||1.25%||1.35%|
|ING||Savings Maximiser (rates effective from 11 November 2020)||0.05%||1.30%||1.35%|
Source: www.canstar.com.au – 10/11/2020. Based on a deposit balance of $10,000. Bonus savings accounts include those that pay a conditional bonus rate when certain conditions are met. Table sorted in descending order by total rate, followed by base rate, followed by alphabetically by provider. Conditions may apply to bonus and promotional rates; contact the relevant company for full terms and conditions.
Top 5 savings account rates (of any account type)
|Provider||Account||Base Rate||Bonus Rate||Promo Rate||Promo Period||Total Rate|
|Rabobank Australia||High Interest Savings Account||0.55%||–||1.45%||4 months||2.00%|
|Heritage Bank||Online Saver||0.80%||–||0.80%||4 months||1.60%|
|Bank of China||Online Saver||0.60%||–||1.00%||4 months||1.60%|
|Macquarie Bank||Savings Account||1.35%||–||0.15%||4 months||1.50%|
|MyState Bank||Bonus Saver||0.15%||1.35%||–||–||1.50%|
Source: www.canstar.com.au – 10/11/2020. Based on a deposit balance of $10,000. Table sorted in descending order by total rate, followed by base rate. Conditions may apply to bonus and promotional rates; contact the relevant company for full terms and conditions.