New highest savings rate hits 4.30%

The highest ongoing savings rate has now hit 4.30 per cent, and it is available for all adults.

ING has announced today it will hike its popular Savings Maximiser account by 0.25 percentage points to 4.30 per cent from next Tuesday, for balances up to $100,000.

The rate is more than three times higher than it was at the start of the rate hikes.

However, the bank is only increasing its Savings Accelerator by 0.15 percentage points. It is also increasing its variable home loan rates by 0.25 percentage points on 8 November.

ING savings rate changes: effective 8 November

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

Yesterday, Macquarie Bank announced it will increase its Savings Account to 4.25 per cent following Tuesday’s RBA decision, however, it is an introductory offer for new customers that lasts for just four months, reverting to 3.45 per cent.

RateCity.com.au analysis:

• 4.30% is now the new highest ongoing savings rate.
• 5 banks currently offer adults an ongoing savings rate starting with a ‘4’, while 2 banks offer this to young adult.
• 13 banks have increased the ongoing rate on at least one savings account by more than the RBA’s total hikes of 2.75% points, ING, Westpac, and ANZ Plus.

RateCity.com.au research director, Sally Tindall, said: “ING keeps pushing the envelope for savers, offering a new highest rate of 4.30 per cent.”

“This is great news for ING customers with a Savings Maximiser account, but also for the overall savings sector because it puts pressure on other banks to lift their game,” she said.

“We expect more banks will break the 4 per cent barrier in coming weeks, particularly with more RBA hikes in the pipeline.

“Banks are already holding a record $1.32 trillion in household deposits, yet some are actively chasing more.

“However, many banks are still being selective in which accounts go up each month. The RBA may have lifted the cash rate by 2.75 percentage points since May, but don’t just assume your interest rate has gone up by this much. Many online saver customers are still stuck on rates under 1 per cent,” she said.

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