ING’s weird savings rate cut: Is it time for you to switch?
ING has made a surprising change to its popular Savings Maximiser account.
ING has cut the total bonus variable rate on its popular Savings Maximiser account following the RBA's rate cut last week. However, it's not what we expected.
Despite the RBA cutting the cash rate by 25 basis points, and heaps of banks cutting their savings rates by the same amount, ING has only reduced its savings rate by 0.10% p.a.
ING savings rate cut explained
As of 28 February, the ING Savings Maximiser account will offer a new maximum rate of 5.40% p.a., down from 5.50% p.a.
The bank cut its standard variable rate from 0.55% p.a. down to just 0.05% p.a, while it increased the variable bonus rate from 4.95% p.a. to 5.35% p.a.
You still need to open an ING Orange Everyday account, deposit $1,000 per month, make 5+ debit transactions and ensure your savings balances grows each month in order to get the high bonus rate.
This means that while the total rate available didn't drop by much at all, if you don't meet the account conditions to earn bonus interest you'll now earn next to no interest with such a low standard variable rate.
However, if you've got this account it's pretty likely that you're planning to meet all the conditions for bonus interest.
How does ING compare now?
Even with this rate cut, ING Savings Maximiser still offers one of the highest rates in the market.
Previously, this account was on par with Ubank's Save account which also offered 5.50% p.a. However Ubank will be cutting its total savings rate down to 5.25% p.a. as of 1 March 2025.
Although, even with this cut Ubank still offers one of the best rates in the market and the conditions for bonus interest are easier to meet than most. All you need to do is deposit $500 per month.
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