Savers hit again as ING slashes Savings Maximiser account rate by 0.25%
ING has become the latest bank to announce a substantial cut to one of its savings account products in the fallout from last week's RBA interest rate decision, with the online bank reducing rates on its Savings Maximiser account.
The bank took the decision to cut 0.25% off the Savings Maximiser standard variable rate, meaning that the maximum interest rate savers can now get with the account has fallen from 2.20% to 1.95%.
The changes, which are effective today, come just three weeks after ING made an out-of-cycle cut of 0.10% to the Savings Maximiser interest rate.
Today’s move also follows previous reductions of 0.25% after the June RBA cut and 0.25% after the July RBA cut.
In fact, the maximum interest rate on the ING Savings Maximiser account has dropped from 2.80% in October 2018 to 1.95% today - a 0.85% difference in just a year.
“It’s not surprising to see banks respond to the latest Reserve Bank cash rate cut with rate reductions of their own as they attempt to balance their books and maintain their profit margins,” said Mozo Banking Expert, Peter Marshall.
“Unfortunately for savers, this downward interest rate trend is likely to continue if the RBA decides to pull the lever again with another interest rate cut later this year or in early 2020.”
Where to now for savers?
ING isn't alone in dishing out a hit to savers, with CommBank and ME among the other notable banks to make have announced cuts to their respective savings account rates following the October RBA decision.
In fact, the average ongoing bonus savings account rate in the Mozo database (for a balance of $10,000) now sits at just 1.76% - a figure that’s only likely to drop further as more banks reduce their savings rates in the coming days and weeks.
So with all the current rate cut action, where are some of the most rewarding places for Australians to stash their cash at present?
Here are some of the highest ongoing savings account bonus rates currently* in the Mozo database.
|Maximum rate||Account||Any requirements?|
|86 400||2.50% (balances up to $100,000)||Save Account||Deposit $1,000 or more a month|
|BOQ||2.50% (balances up to $250,000)||Fast Track Saver Account||Deposit $1,000 or more into a linked Day2Day Plus Account every month|
|MyState Bank||2.50% (balances up to $150,000)||Bonus Saver Account||Deposit $20 or more and make five debit transactions every month|
|Up||2.50% (balances up to $50,000)||Saver Account||Make 5+ card purchases each month using a linked Up debit card|
Eyeing off a savings account switch of your own? Take a look at some of the great offers below, or head over to Mozo’s dedicated savings account comparison table for an even wider selection of accounts.
*Correct as of October 9, 2019.