ING’s Savings Maximiser account will see just a 10-basis point cut to its highest variable rate to 5.40% p.a., down from 5.50% p.a., effective Friday 28 February.
But the online bank will change the fundamentals of the account, raising the bonus interest rate by 40 basis points to 5.35% p.a. (up from 4.95% p.a.).
At the same time, it’s taken the axe to the standard base rate, slashing it by 50 basis points from 0.55% p.a. to 0.05% p.a.
To achieve the highest rate on the Savings Maximiser on account balances up to $100,000 (one account only), customers need to:
- deposit at least $1,000 a month into any personal ING account (excluding Living Super and Orange One)
- make five or more settled ING card purchases
- grow their nominated Savings Maximiser account balance, excluding interest earned, over a calendar month
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ING to stay among market leaders
The new rate of 5.40% p.a. will see ING’s Savings Maximiser account remain among the market leaders.
It will be pipped only by Rabobank’s new four-month introductory rate of 5.45% p.a. which reverts to on ongoing rate of 4.10% p.a.
Ubank’s high interest savings account top rate of 5.50% p.a. will drop to 5.25% p.a. on amounts up to $100,000 from Saturday, 1 March.
Macquarie Bank is yet to announce how the Reserve Bank of Australia cash rate cut will affect its high interest savings account rate of a 5.35% p.a. four-month welcome rate on balances up to $250,000 with an ongoing rate of 5.00% with no conditions.
Bankwest, owned by CommBank, is also offering a 5.35% p.a. introductory rate for four months, dropping to 4.00% p.a. ongoing.
See also: Which banks are lowering savings rates after the RBA's February rate cut?
Vigilance needed to achieve best rates: ACCC watching
The slashed base rate on the ING Savings Maximiser account will make it even more imperative for account holders to ensure they meet the conditions for achieving the top rate.
Many of the market’s leading savings account rates come with conditions attached and can mean the difference between a handsome interest rate and a negligible one.
An ACCC investigation in 2023 found 71% of savings accounts with a bonus interest rate didn’t receive the bonus interest each month over a six-month period.
It recommended banks be required to alert customers if they’re about to miss out on a bonus rate by not fulfilling the conditions.
It’s not clear how many have taken up the recommendation, though ING regularly emails customers on their monthly progress towards satisfying their monthly deposit criteria.
ING Savings Accelerator rates also cut
ING’s other saving product, Savings Accelerator, will see a 25-basis point interest rate cut across the board, also from Friday 28 February.
Its four-month kick-starter offer of 0.70% p.a. on top of the ongoing variable rate will remain the same, with the new rates as follows:
| Account balance | Kick starter rate for first 4 months | Ongoing variable interest rate |
|---|---|---|
| $0-$49,999.99 | 3.30% p.a. | 2.60% p.a. |
| $50,000-$149,999.99 | 4.20% p.a. | 3.50% p.a. |
| $150,000-$500,000 | 5.15% p.a. | 4.45% p.a. |
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Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
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