ING savers hit with another rate cut
Today, popular digital bank, ING slashed interest rates by 0.25% across most of its savings accounts products following the RBA decision last week.
ING have dropped rates on the Savings Maximiser, Savings Accelerator and Business Optimiser accounts, for both new and existing customers.
However, the amount of bonus interest savers make on the Savings Maximiser and Business Optimiser accounts has remained unchanged, as long as minimum account requirements are met.
Savings Maximiser
| Old Rate | New Rate | Change | |
|---|---|---|---|
| Base Rate | 0.75% | 0.50% | -0.25% |
| Bonus Interest | 1.80% | 1.80% | 0% |
| Total Interest | 2.55% | 2.30% | -0.25% |
Requirements for bonus interest:
- Linked with an Orange Everyday Bank Account
- Deposit $1,000 a month
- Make 5 purchases on your ING credit or debit card
Savings Accelerator
| Old Rate | New Rate | Change | |
|---|---|---|---|
| Interest Rate >$150K | 1.95% | 1.75% | -0.20% |
| Interest Rate $50K<$150K | 1.50% | 1.25% | -0.25% |
| Interest Rate <$50K | 0.75% | 0.50% | -0.25% |
Business Optimiser
| Old Rate | New Rate | Change | |
|---|---|---|---|
| Base Rate | 1.25% | 1.00% | -0.25% |
| Bonus Interest | 1.00% | 1.00% | 0% |
| Total Interest | 2.25% | 2.00% | -0.25% |
Requirements for bonus interest:
- Only for new customers for the first 6 months of opening the account
- Linked to an ING transaction account
RELATED ARTICLE: Big banks go easy on savers following RBA rate cut
ING is part of a long list of banks cutting rates on savings accounts, as 66 providers in Mozo's database have slashed rates since the first RBA decision back in June.
“Interest rates on savings accounts are at an all time low, so more rate cuts is bad news for Aussie savers,” Mozo Director, Kirsty Lamont said.
“It’s important for savers to be savvy now more than ever, and continue to meet any bonus interest requirements on their savings accounts whenever they can so they’ll actually benefit from an account that offers a higher special rate.”
It’s not all bad news!
While ING have cut interest rates on savings accounts, for customers who want to lock their funds away, some term deposit rates have spiked.
On both personal and business term deposits of 330 days, interest rates have gone up by 80 basis points, from 1.50% p.a. to 2.30% p.a.
“For savers with a serious financial goal who don’t need access to their funds for a little while, term deposits may be a beneficial alternative to savings accounts, considering recent rate cuts,” Lamont said.
“If you pick a good deal, a term deposit can see you earn a solid interest rate over a specific period of time, without the continuous depositing conditions on some savings accounts.”
But if you don’t want to lock your savings away, there’s still good rates on savings accounts if you know where to look. Jump over to our savings account comparison table to weigh up providers.
^See information about the Mozo Experts Choice Savings Account Awards
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