ING trumps market leaders with 4.05% savings rate

The market-leading savings rate for all adults has now climbed above 4 per cent, as more banks go beyond the RBA hike to attract deposits.

ING has announced today it will hike its popular Savings Maximiser account by 0.45 percentage points to 4.05 per cent on 11 October for balances up to $100,000.

This rate is three times higher than it was six months ago.

However, the bank is only increasing its Savings Accelerator by 0.20 percentage points. It is also increasing its variable home loan rates by 0.25 percentage points on 11 October.

ING savings rate changes: effective 11 October

Source: RateCity.com.au. Notes: terms and conditions apply for max rate on both accounts.

Currently BOQ and Macquarie are the only other banks to offer adults a savings rate starting with a ‘4’, however, BOQ’s rate is only for Australians aged 14 to 35 on balances up to $50,000, while Macquarie’s rate is an introductory offer that lasts for just four months, revert to 3.20 per cent.

RateCity savings account analysis:

• 7 banks have so far announced savings rate hikes since the October RBA meeting on Tuesday. See the RBA rate trackerfor a live list.
• 4 banks have announced they will increase at least one ongoing savings rate beyond the October RBA 0.25% point hike; ING (+0.45% points), Macquarie Bank (+0.45% points), CBA (+0.30% points) and MyState Bank (+0.40% points).

Source: RateCity.com.au Market leading savings rate for all adults.

RateCity.com.au research director, Sally Tindall, said: “ING has thrown down the gauntlet to the other leaders in the savings sector by announcing an impressive 4.05 per cent ongoing rate.”

“This new rate will put ING above the rest of the pack, however, other market leaders are likely to chase them down,” she said.

“ING customers with a Savings Maximiser account will soon be getting a maximum rate that’s triple what it was at the start of May. That’s a huge boost for someone trying to save for a big purchase such as a house deposit.

“On a $50,000 deposit, a saver with this account can now earn over $112 extra a month in interest compared to what they might have earned six months ago, if they meet the terms and conditions.

“We expect more banks will break the 4 per cent barrier in the weeks ahead, especially if the cash rate goes up again next month.

“Banks are already holding a record $1.3 trillion in household deposits, yet some are still actively chasing more.

“Since the RBA decision on Tuesday, four banks have announced bigger increases than what the RBA prescribed: ING, Macquarie Bank, CBA and My State.

“Mortgage funding costs are on the rise, making deposits an increasingly important part of the funding mix.

“That said, many banks are still picking and choosing which accounts go up each month, so don’t just assume you’re now on a decent rate. Some online saver customers are currently still stuck on rates under 1 per cent,” she said.

Highest ongoing savings rates on RateCity.com.au

Source: RateCity.com.au. Conditions for max rate apply.

ONLINE SAVERS: big four bank rates post Oct RBA

Source: RateCity.com.au. CBA rate effective 14 Oct, ANZ Plus rate effective 12 October.

BONUS SAVERS: Big four bank rates post Oct RBA

Source: RateCity.com.au. Conditions may apply for max rate. CBA rate effective 14 Oct. Westpac rate effective 18 Oct.

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