ING Direct Saving Maximiser - now 6.00% for new customers

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• 

  Trance N Dance on 16/04/2010 - 12:04

  must remember that you have to jump out after 4 months or else it drops back down to 4.65%
  i dont really like seeing these promo rates, id rather see a post for a new rate that is awesome and doesnt change after x number of months, and so far that stilll seems like ubank with their 5.85%

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  Cluster on 16/04/2010 - 12:19

  +3

  ING Direct fails here. New customers get 6%, but existing customers are stuck on 4.65%, which is extremely low and lower than pretty much all other online accounts.

  ING Direct's 6 month offer is only 0.05% more than UBank's 5.95%, which everyone can get.

  Many years ago I as a loyal ING Direct customer, but then they stuck with low rates and silly teasers for new customers. All my money sits in UBank. ING, lift your game.

  • 

    Bandit74 on 16/04/2010 - 12:47

    +1

    If you have over $150,000 …. UBank is only 5.85%

    I'll admit that UBank remains with the best standard rate (for now) but if UBank didn't drop their rate assurance Ubank would have 6.00 (6.10 for ASP) as of this afternoon.

    They sucked in tonnes of customers because of this - Gerd when UBank started up said that the "rate assurance was here to stay." and then it got chopped to 3 months and then extended another 3 months and now dropped all together.

    Now just comes off as a sleazy PR tactic combined with all their viral marketing and push PR in places like here from UBank reps who now have gone missing

    Not to mention that their Term Deposit rates have FALLEN in recent weeks while other raise them. You can only wonder what their long term agenda is

    They won't get any new customers. One visit to their website says that

    https://www.ubank.com.au/ub/web/usaver/online-savings-compar…

    and if they follow the other banks and offer intro rates themselves they will only pi$$ off current customers they sucked in with their original slick & sleazy spin

    Am I bitter much? :-P

    • 

      Cluster on 16/04/2010 - 12:55

      +2

      If a customer has over $150k then they have enough money to approach their existing bank(s) to negotiate a better than advertised deal.

      I don't have any loyalty to banks (as they don't have loyalty to customers). ING was the best early last decade, but now lags behind everyone else. UBank burst forward and clearly beat everyone last year, but now they too are showing signs of being complacent. With all the competition out there and possibly new players willing to enter the market, UBank better watch out or it'll be 'just another online account' instead of a price leader with customer support.

      I have five online savings accounts and freely move my money between them to chase the better offer.

      • 

        [Deactivated] on 16/04/2010 - 15:16

        They may offer a better deal above their base interest rates but not for their higher rate.

        A friend has tried with over $400K in with BOQ, ANZ, ST George and AMP, at best it was a polite no

        Maybe you know of another bank that will do this

  • 

    BargainMe on 16/04/2010 - 12:51

    +1

    I left ING for the exact same reasons.

  • 

    bobsi18 on 17/04/2010 - 09:56

    Urgh, wish they would allow this for existing customers… Looks like I need to consider other banks again, I guess I'll start looking at UBank. I've been putting it off, was hoping ING would lift their game, but looks like they won't.

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  [Deactivated] on 16/04/2010 - 12:24

  +1

  Watch the loyalty game it will bite you. Switch for 4 months then go back to Ubank. The only way they can stop it is to go lower so you dont switch back, or higher so you will.

  Supply and demand works everytime. except against cartels

  • 

    twig on 19/04/2010 - 21:22

    lol love the reference to cartels. damn that artificial demand.

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  hellbound on 16/04/2010 - 12:30

  wow, a lot of negativity there. Ubank still has a much higher standard rate then ING, and I cant be bothered re-joining ING for an extra 0.15% for a few months.

• 

  macfanboy on 16/04/2010 - 13:10

  I 100% agree that Ubank need to lift their game !
  Howver let's put this into perspective:

  Interest for $100,000 invested for 6 months: Ubank @ 5.95% = $3,063.03, with ING @ 6.00% = $3,037.19.
  This means that with a large amount invested you will gain only about $25, you then have to move it back. Note also that this is a variable interest rate and Ubank/ING may change it at any time, therefore it really is impossible to forcast the benefit and if you could it would probably be neglible.
  Therefore I wouldn't change at this point in time.

  By the way, to get the extra 0.1% you only need to deposit $100 per month, if you can't afford that then set up an direct debit for $100 to go in and then a few days later pay it back…

  • 

    djones145 on 16/04/2010 - 14:26

    not sure the terms for ING but for Rabo for the premium savings account (5.75%) ur acccount has to increase by 100 (has to be from direct debt and not due to interest)
    means putting it in one day and taking it out wont work

    • 

      macfanboy on 16/04/2010 - 14:44

      Does work, i've been doing it for months now.

    • 

      macfanboy on 16/04/2010 - 14:44

      Does work, i've been doing it for months now.

  • 

    SomeGuyOnOzB on 16/04/2010 - 15:02

    +1

    If you lose interest for just two days, one day going in and one day going out …

    If you are on the UBank ASP, then it's like losing 2 days of 5.95% per anum
    2 days x 5.95% per anum -> 1 day at 11.90% per anum (for comparison purposes only)

    If you are on the UBank ASP, then you gain interest per day, based on 0.05% per anum, for 4 months (roughly 122 days)

    122 days x 0.05% per anum -> 1 day at 6.1% per anum

    So … regardless of how much money you have, if you have a UBank ASP, even if you only lose 1 day of interest each way (I suspect you'd lose more), then transferring to ING and back will probably cost you money.

    ---

    If you don't have the ASP then you are working with 5.85% for losses and 0.15% for gains.
    2 days @ 5.85% => 1 day @ 11.7% loss
    122 days @ 0.15% => 1 day @ 18.3% gain

    Note the 2 day loss may be optimistic. If you only lose interest for 2 days then you may make a gain (though rounding errors may wipe out the gain for amounts under $100,000).

    If you lose interest for 3 days in transfers then the loss is similar to 1 day @ 17.55% per anum, which is almost the entire gain. 3 days loss on $100,000 -> net gain around $2.05 before bank rounding errors, for this work …

    Though, if the loss were limited to 2 days somehow, it would be theoretically a $18.08 gain for someone with $100,000. (Rounding errors etc may reduce that amount in practice)

    ---

    At this interest rate it is likely anyone with money in UBank with an ASP, would lose out, doing a transfer.

    Those not on an ASP … it depends on how many days interest is lost in transfers.

    ============

    -> UBank
    Maybe you could raise your interest rate to 6.0% and skip people looking at shipping their money out to ING?

    • 

      patientvalue on 16/04/2010 - 16:31

      Thank you foundit. This is interesting and useful (although i did not follow the maths closely :)

      This supports my rational for not moving (yet) from ubank (not too mention my own inertia). The differential is not sufficient. I suspect ubank are aware of this too. However i am hoping, like a well trained paplov dog, that ubank will match their competitors as they have done so in the past (no holding of breath though).

      ---

      A response to Bandit74's earlier comments/diatribe: From the banks perspective it is about customer stickness/laziness and not loyalty. It seems pretty naive to me to expect/hope banks will reward loyalty; the converse is in fact true - you reward them with laziness/stickness by not moving your money once it is with a bank because so much time has been investing in setting up an account-it is called a 'switching cost'. Banks are not into rewards, as the saying goes 'if you want loyalty get a dog'.

      Banks are in business for profit; and it would be hard to find a colder and harder business than dealing in dollar bills. I suspect the true cause of your resentment/frustration is the fact that the changing competitive offerings are forcing you to chase the best rate to maximise your return. Well if you want the absolute maximum return then you will have to work for it; there ain't no free lunch in this game.

      However it is much easier to transfer funds between internet accounts than in the past and this has lead to greater competition

      I also have a fair sum saved. But as is thoughtfully and intelligently pointed out by foundit the difference in rates has to be of a sufficient amount to justify a move.

      ---

      general comment:

      I find it fascinating that quite a few people on OzBargain have large sums to invest/save. A fair few of us here share some interesting consumer traits - like to save money rather than spend it and have large sums saved. Maybe Scotty could leverage that with bank advertisers perhaps…clearly the ubank and Gerd picked up on this.

      • 

        Bandit74 on 16/04/2010 - 18:27

        +1

        As you can tell I am pissed off with UBank - and judging by numerous anti-UBank posts on Twitter & Facebook the past week I'm not the only one that is fed up with UBanks tactic of sucking customers in and then leaving them in the lurch

        Basically UBanks representatives here, on twitter, on Facebook, on Whirlpool when UBank started up pretty much lied outright to bait customers in with the line "because we are an online entity WE WILL ALWAYS be able to offer the best savings rate including other banks intro/promo rates"

        People (like me) sick of jumping around from here there to everywhere took the UBank online posting reps at their word and their "best rate" spiel soon was put into practice as the "Rate Assurance" PR stunt

        All was well for most of 2009, then come years end the RBA started to jackup the cash rate and other places started to lift their rates forcing UBank to boost their rate.

        Warning signs started to raise their head after the March rate increase when it took UBank till the last possible minute to "match" their competitors instead of being the leader of the pack and on March 31 the "Rate Assurance" expired and as we have seen. And following the April increase last week UBank has not raised the on-call rate while every other bank has passed it on

        http://twitter.com/canstar_rates

        So much for the original promise of "WE WILL ALWAYS be able to offer the best savings rate including other banks intro/promo rates"

        UBank online reps of course have gone missing now (their job being done to suck people in) & twitter complaints to them are fobbed off or not replied to at all

        Just another bunch of banker wankers. They promoted themselves as the "online" savvy cool-thing, now they have to live with the fact they are getting trashed online by the same people they brought in as customers

        And I'm only ragging on about the USaver - their recent performance for the Term Deposits is even worse!

        If they don't lift their rate in the next week, it's back to the jump around process for me seeing I have lot more than 150k and the +0.10% UBank ASP bonus is irrelevant to me so I am missing 0.15% over the space of 6 months at another bank is still a substantial figure I'm missing out

• 

  Runey on 16/04/2010 - 15:04

  Whilst 6% for an on call account is good if you're happy with a Term Deposit ME bank offer 6.10% for 7months if you are a "standard" customer and 6.35% if you are a member of some super funds. List of eligible Superfunds are here http://www.mebank.com.au/personal/term_deposits/super_funds.…. At least the rate is locked in then…

  • 

    [Deactivated] on 16/04/2010 - 15:13

    +1

    Welll why would you do that - you lock in a rate, and nearly everyone says the rate will increase. So 6% now then .25% in a month or two's time and you are ahead of the me rate.

    Agree with the others about issues with moving funds BUT that's what the banks want to hear. That's why they "bank" you people not making the move. The movers make them move. The stayers make them, stay.

    And in many cases if you do a direct debit transfer, ie you request the new bank to bring the funds over you don't lose anything. At the worst its one day. Dont confuse funds availability for funds earning the interest. it's like a cheque. You earn money for the deposit the day you deposit, you just have to wait fora week or so if you want the money out.

    One thing that concerns me about uBank now is that their TD rates are very low. 6 months 6.01% and 12 months 6.01% in between that is even lower. Now why would you lock in a rate thats only .16% higher than their at call rate. With the RBA making noises that the rates are to go higher - now when is another matter - all it takes is another .25% and you are behind with these TD's.

    But Ubank would also lose out if the rates went up another .25% AND they pass that on. Now if they have no intention of passing on the higher rates, then this strategy would make sense… So are they signalling that they aren't interested in playing in the game anymore??

    Guess only time will tell.

    At as of today the bulk of my funds are with uBank, so this is NOT a uBank beat up, but its something that does concern me.

    • 

      SomeGuyOnOzB on 16/04/2010 - 15:37

      There are different ways to transfer the money from one bank to another.

      A direct debit request, issued by the receiving bank, is faster, I believe, than a pay anyone request, issued from the sending bank. I am more used to the pay anyone request.

      ---

      For the pay anyone request, the money comes out of the sending bank on day 1, and is processed against the receiving bank on day 2 or 3. If things are done right, there is no public holiday interfering and interest will begin being credited again starting sometime day 2-4 (depending how the bank works).

      ---

      For a direct debit, I'm not as familiar. Does the receiving bank calculate from the first day it issues the request to the sending bank, and will pay if the money is received and cleared?

      Can we do a direct debit from an ING savings account? I think we can do it from a USaver account, so the other side of the transaction should be covered …

• 

  Shadowsfury on 17/04/2010 - 13:52

  FYI, UBank just released updated rate assurance (note it won't match intro rates however).

  At least it's permanent.

  https://www.ubank.com.au/ub/web/usaver/online-savings-rate-a…

  • 

    massari on 17/04/2010 - 14:02

    beat me to it :p

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  massari on 17/04/2010 - 14:00

  Hey guys,

  If you have them on facebook check it out. They posted this:

  http://www.facebook.com/#!/ubank?ref=ts

  https://www.ubank.com.au/ub/web/usaver/online-savings-rate-a…

  'Our new USaver Rate Assurance is
  one of the ways we help you make the most of your money, easily. Check
  it out, as always your feedback is greatly appreciated.'

  However, the rates do not include introductory rates. .. So i guess its good and bad but yea

• 

  SomeGuyOnOzB on 18/04/2010 - 15:26

  maybe they could have their own introductory rate … :P