Highest savings rate for all adults to reach 5.25% from ING: what you need to know

While a higher cash rate spells bad news for homeowners, there is one group that comes out on top when the Reserve Bank of Australia (RBA) begins hiking rates: savers. 

This latest cash rate hike is no exception, with ING revealing it is increasing its highest ongoing variable savings rate by 25 basis points to 5.25%. Eligible ING Savings Maximiser customers could now earn the soon-to-be highest savings account rate for adults on the RateCity database from 9 May 2023.  

The cash rate now sits at 3.85%, but with another hike predicted in 2023 by big four bank ANZ, we could see savings account interest rates across Australia climb even further. A savings rate starting with a ‘5’ may soon become commonplace. 

However, as the ING Savings Maximiser is a conditional savings account, there are a few hoops that customers will need to jump through to qualify for this competitive interest rate. 

Savings Maximiser

• Bonus interest with conditions
• App banking
• Online banking

Enjoy a competitive ongoing bonus interest rate with this award-winning savings account when you meet the maximum rate conditions each month.

Maximum rate p.a.

5.50%*

Base rate p.a.

0.55%

More details

FeaturedAustralian Credit Licence: 229823 ING terms and conditions

 ING will also be lifting its Savings Accelerator offers for new and existing customers by 0.25% as follows:

• Balances of up to $49,999.99 – taking the rate to 2.85%
• Balances from $50,000 to $149,999.99 – taking the rate to 3.75%

Further, it is surpassing the cash rate hike from the RBA and lifting rates for Savings Accelerator customers with balances of more than $150,000 by 0.30% to 4.00%

Conditions to earn this higher interest rate

ING Customers must complete the following requirements each month to qualify for this new high interest rate of 5.25%: 

1. Deposit at least $1,000 from an external source; 
2. Make 5+ settled card purchases; and 
3. Grow the balance on the nominated Savings Maximiser account – i.e. make sure there’s more in the account at the end of the month (excluding interest) than there was at the end of the previous month.
4. Available for balances up to $100,000 (when you also have an Orange Everyday account). 

Conditional savings accounts often require customers to meet specific requirements, such as these listed above, to qualify for the highest ongoing variable rate. However, if you’re more of a set-and-forget borrower, it’s worth comparing introductory savings accounts without conditions. 

How much could you save with a high interest savings account?

RateCity has crunched the numbers to discover how much you could save by switching to a higher interest rate savings account.

If you deposited a balance of $25,000 into a savings account paying a rate of 5.25% and made regular deposits of $100 monthly, you would earn an additional $2,579 on top of your original balance. 

How much you could earn on higher-rate savings account

Source: RateCity.com.au. Based on a hypothetical savings account with 5.25% interest rate. Does not factor in rate fluctuations or fees. Assumes $100 monthly deposit.

Could other savings account providers hike rates?

ING is just one of the first savings account providers to announce hikes to their highest ongoing variable rates. However, there are a range of high rate savings account providers that have yet to announce if they are passing on the latest cash rate hike, and by how much. 

At the time of writing, these are the highest ongoing interest rates for all adults for savings accounts on the RateCity database, and the rate they could climb to if the provider passes the cash rate hike on. 

Source: RateCity.com.au. Data accurate as of 05/05/2023.

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