ING Direct drops Savings Maximiser rate to 2.8% from 3.0%

Just received the notification. They have updated their site to reflect the new interest rates.

https://www.ingdirect.com.au/savings/savings-maximiser.html

Once Ozbargainers have recovered from shock, what are your plans now? Remain with ING or jump ship?

High interest alternatives courtesy of Catsfan070911
Ubank – 2.87%
St George – 3.00% (First 3 months only)
Rams – 3.00% (No withdrawals in the month)
RaboDirect – 3.05% (First 4 months only)
Me Bank – 3.05% must Tap & Go purchase with Everyday transaction card, weekly.

Poll Options

  • 71
    Staying with ING despite the interest rate drops
  • 19
    Wait and see
  • 33
    Immediately transferring out to another bank
  • 97
    Exploring better for value options
  • 8
    Bikies?

ING Direct

Related Store: ING Direct

Comments

  • +1 vote

    Hmm, with their increased fees to their super product it may be time to jump ship… who's got the next best rate?

    • +12 votes

      ME Bank has 3.05% if you use their contactless payment every week.

      UBank has 2.87% if you deposit $200/month.

      RaboDirect has 3.05% for the first 4 months.

      • +1 vote

        1c at the self checkout at coles/woolies suffice for MEbank?

        • +1 vote

          Yeah, I don't see why not, I don't remember reading the t&c that it had to be a limit though that was some time ago that I red it.

        •  

          what can you get to scan at 1c? I can't think of any.

        • +12 votes

          @tio: Do a part payment. So press the Card tab, then the Partial Payment button on the screen, enter 0.01 and then the terminal will ask you pay the 0.01. Use the ME Bank card for this, then pay the rest of the bill with Gift Card/eGift Card/CC/DC/Cash :)

        • +3 votes

          It's been sufficient so far

          1c per 7 days still gives them:
          - a little info about where we shop
          - if their system is working
          - a real chance that we'll miss a payment and they get to pay us far less interest

          Just a reminder to existing customers, the T&C now say you cannot have more than 7 days between transactions, which is a change from what lots of people were told last year. You may want to check you are getting the right amount of interest, if you haven't done it in a while

        •  

          @foundit: does that mean if you make a payment on a tuesday in week 1 and a friday in week 2, it won't fulfill the bonus interest rate criteria?

        • +1 vote

          @iamnotintheuk:

          Yes. Their staff told me over the phone that it wouldn't meet their criteria, before I joined this year.

          Note: Other OzBargain members were told last year that it would meet criteria. So, the criteria might've changed this year.

      • +8 votes

        RAMS has 3.0% if you have money you can put away and not touch for a while
        Full interest rate requires:
        - no withdrawals
        - monthly deposits of $200

  • +10 votes

    ING's products have definitely fallen in value…

    Already moved out my superannuation and the new credit card has no real benefit…

    •  

      Which super did you move your super to?

      •  

        Australian Super
        Their balanced option is the same fee amount as ING's new fee structure. Main reason I chose Australian Super is that it's an industry fund.

        You could definitely find a cheaper option though!

      • +5 votes

        Yeah i went with HostPlus thanks to a comment on the Super Fees forum post a while back
        Indexed Balanced i think i chose… like $60 a year plus a very small fee.
        but with super you should research and find what is right for you

      •  

        Thanks. will check them out.

      •  

        I went with SunSuper because they have a wider choice of index options as I like to jump in and out of risk depending on how each market is priced.

        HostPlus had a narrower selection but if you intend to stick with one of their basic index options, it is cheaper in the long term. SunSuper is only marginally more expensive from memory though.

  • +2 votes

    ING Direct used to be the go-to online bank for the best offers and interest rates. The credit card product with its astronomical annual fees and restrictive cash back conditions is useless to everyone except those that have a mortgage with ING.

    The only reason for me to hold any money with ING is to take advantage of the fee free ATM offer.

    •  

      Other banks have the free ATM offers now too, from memory.

      • +6 votes

        i know Macquarie does free withdrawals from ATMs now PLUS no overseas transaction cost with their MasterCard debit. It's like ING and Citibank debit had a baby.

        •  

          Only problem with Maq is they cant get u know… banking right
          Transfers go missing
          tap n go purchases not processing for days and not reflecting on balance allowing u to respend money already spent
          wage deposits taking 1-2 days longer to credit to your account longer than any other bank

        • +2 votes

          @jimbobaus: Is this a recent experience with macquarie? I am a customer of Macquarie and have had no issues similar to what you have mentioned at all. The zero overseas transaction fee and good exchange rates are great when buying stuff from Aliexpress and the like. The free ATMs are also very useful.

        • +1 vote

          Keep in mind that Macquarie is fee free overseas for transactions only. Not ATM withdrawals. Citibank is still the best for that with ING a good backup with a $2.50 fee per withdrawal.

    • +2 votes

      Yeah the free ATM is great, but I always use card/paywave so it's of no benefit to me.

  •  

    ING New rates from 14 July 2017:-
    Highest variable rate (Standard + Additional) 2.80% (- 0.20%)
    Standard variable rate 1.5%
    Additional variable rate 1.3% (- 0.20%)

  • +18 votes

    This is the last straw for me, first super and now their bread 'n butter everyday account. See ya later ING.

  • +5 votes

    I have just voted with my feet. Ubank is much simpler all round. For me it is only 0.07% better but maybe ING will get the message if lots of people move.

  • +3 votes

    Moved out super already. Looks like transaction account won't be far behind…

  • +6 votes

    You think ING is trying to get rid of us, as they make little to no money from Ozbargainer's, it's us we sight up to get the referral bonus then we close down our accounts and see each so other next year hahaha :P

    • +6 votes

      I laughed when I saw the T and C of their referral scheme recently. They specifically said regarding the fair use. E.g. sharing the referral link on the OzBargain website.

      •  

        I know, it makes me laugh every time, I told some of my friends (trying to convince them to be Ozbargainer's) they did not believe me until I showed them, it really made them crack up laughing!

        Ahhh, banks they never really make money from us Ozbargainer's, besides referral sigh up, stoozing is another top one!

    • +2 votes

      They don't always pay the referral bonus :S


      It's not so much, how much they make off us; it's where they can invest the money and what returns they can make (also where else they can borrow from and how much that costs)

  • +2 votes

    Moving to RAMS

    • +1 vote

      How do people that have an account with RAMS deal with moving money out of the account?

      •  

        Any month you need to make a withdrawal you lose over half your interest for that month. Without careful planning you're better off staying with ING, I've been caught by this in the past.

      •  

        Only put money in RAMS, that you don't have to touch for a very, very long time

        • +4 votes

          I heard in another thread people were creating 2 RAMS accounts - then at the first day of the month, withdraw what you need, then transfer everything else to the other account. Haven't done this myself to confirm.

        • +1 vote

          @danyool:
          huh … hadn't heard of that … very nice idea

          Got a 2nd account inside a minute … thank you :D

      • +2 votes

        You have two account in rams, keep all in account A and keep account B empty

        when u need to withdraw money, move all remaining money to account B on first of month, and withdraw from A what u need.

        Repeat forever back and forth

      • +3 votes

        This post on whirlpool gives a clear explanation on how you can get around the no withdrawals and $200 deposit requirement for RAMS
        whrl.pl/RefCKJ

        I've copied it below for anyone else:

        The RAMS Saver account requires you to deposit $200 and make no withdrawals to earn the bonus rate in a particular month. If you need access to your cash but want the bonus rate every month, open two RAMS Saver accounts.

        Lets say you need to have access to $5000 per month cash and you have two RAMS Saver accounts A and B and it is currently the month of March.

        1. Deposit your max amount (must be >$200) into A in March.
        2. Do not withdraw any amounts from A during March. This will earn you the bonus interest for the total amount you have in A for March.
        3. On the 1st of the next month April, withdraw everything except $5000 from A and deposit it in B.
        4. Do not withdraw any amounts from B during April. This will earn you the bonus interest for the total amount you have in B for April.
        5. The $5000 you have in left in A will no longer earn the bonus interest so you can withdraw from it as you see fit during April.
        6. On the 1st of the next month May, withdraw everything except $5000 from B and deposit it in A.
        7. Do not withdraw any amounts from A during May. This will earn you the bonus interest for the total amount you have in A for May.
        8. The $5000 you have left in B will no longer earn the bonus interest so you can withdraw from it as you see fit during May.
        9. Repeat for the following months.

        Any additional money you have like your salary, just deposit into either A or B depending on which is currently earning the bonus interest. Deposits don't affect the bonus interest and you will get interest on a daily basis for any extra you deposit. Just make sure you deposit it into the account that is currently earning the bonus interest for the month.

  • +5 votes

    Dammit I only just joined ING 2 months ago

  • +12 votes

    Damn, a 6.9% drop in monthly interest!
    Time to look elsewhere:
    https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e...

    • +2 votes

      That's a very nice spreadsheet with everything already populated :)

      Thank you, that AMP account is one I'd never heard of

    •  

      thanks for the spreadsheet. like above I didn't know about AMP. just opened an account with them. cheers.

  • +1 vote

    That sucks! I switched back to ING from ME Bank a few months ago because I couldn't stand ME's online or mobile banking apps. Not to mention the problem last year they had with interest payments showing incorrectly and having to get them to backpay my lost bonus interest due to the ambiguous "weekly" transaction requirement.

    • -1 vote

      Use UBank, as mentioned above. It's 2.87%, which is higher than ING.
      Also, unlike ING which only allows you to transfer money into a "linked account", UBank allows transfers to any account, including "pay others".

      • +2 votes

        "unlike ING which only allows you to transfer money into a "linked account" - wat? I can pay whoever I want with ing.

        • +1 vote

          Are you sure? Log into your account and you will realise that you can't actually pay out of your "Saving's Maximiser" account.
          You can only "pay whoever you want" out of the Orange Everyday account.

          This means that you can't schedule regular recurring payments such as rent or mortgage from your "Saving's Maximiser" account, which is the account that actually pays interest.

        • +1 vote

          @bsmksg:

          Yep, that's right. I thought ubank had exactly the same restriction between their 2 accounts. Heard of ubank ultra?

          So you can go ahead and rephrase your comment to say "restriction only applies to savings maximiser".

          I like it for security reasons this way. If someone steals my card, they can't steal every cent of my money. Only money fromthe everyday account.

        •  

          @watwatwat: Just to point out, the title of this forum is "ING drops Savings Maximiser rates…". Which is why I saw not need to mention the words 'Savings Maximiser'.

          Also, you don't need to use Ubank Ultra to schedule regular recurring payments. You can actually schedule payments directly out of your U Saver account.

          Or quite simply, Ubank allows you to 'pay anyone' from BOTH the Transaction AND the Savings account.
          ING allows you to 'pay anyone' out of the Transaction account, BUT NOT the Savings account.

          By allowing me to do recurring payments from the SAVINGS ACCOUNT (not Transaction Account), UBank has essentially allowed me to maximise my interest earned as I am not required to transfer money into a non-interest-paying account before making recurring payments to someone else.

          It is not something that many people realise.

        •  

          @bsmksg:
          Well, you can use ING for direct debits, but you need to transfer from the Savings Maximiser the day before. A pain I know, but most (not UBank) online savings accounts can only withdraw to a linked account.

        •  

          @Cheapskate Paul: Precisely why I think UBank is so much better. I think having to remember to "transfer from the Savings Maximiser the day before" defeats the whole purpose of scheduled transfers.
          (Do also note that I totally agree than ME Bank's 3.05% is sooo much better, but it is just too much of a hassle for me.)

        •  

          @bsmksg:
          UBank lets you pay regularly from the savings account

        •  

          @bsmksg:
          You may schedule to transfer automatically from Savings Maximiser to Orange Everyday instead of transferring manually.

    • +1 vote

      Me bank is simple, buy a can of baked beans etc every Tuesday and Thursday.

  • +18 votes

    Plenty of warning given- We like to be open about rate changes here at ING DIRECT, so wanted to let you know that the Savings Maximiser rate changed today.

  • +1 vote

    Thanks for the $75 ING, but this is the end of our relationship. It's not me, it's you

  • +12 votes

    Time to open Bank of OzBargain? Interest would be paid monthly in Eneloops!

  •  

    Is this really a major decrease? Isn't it still the highest paid interest savings account?

  • +1 vote

    Literally today just finished consolidating my savings to ING Direct and received that email…:(

    •  

      Same here, I just transferred quite a bit of money there seeing the 3% interest, and now I have to undo a days work.

      • +5 votes

        It took you a day to arrange some bank transfers? Do you work for the government?

        •  

          Not really a day, but trying to figure out payments and transfers was a pain, especially when you have "scheduled transactions" that go from account A to B to C, and have no idea why you scheduled it that way. (i.e. what the 'criteria' for that particular bank account was). But yes, not a day. What I meant was "yesterday's work".

        •  

          @bsmksg: Understand :)

        •  

          @bsmksg: Since you mentioned scheduled trans going from A->B->C, perhaps you know the answer to this. Let's say I need to pay some external party sometime in the future, and I schedule a transfer from Savings to Everyday A/C, then another to pay from Everyday A/C to the external party. If both are scheduled on the same day, will it work? i.e. will transfers from Savings to Everyday account happen first, so it will not result in an overdrawn situation?

          Thanks in advance.

    •  

      Exactly did what you did. What a bummer!

  •  

    This is bad news, but what else to do?
    ME Bank (if you can stand their app) has 3.05%
    UBank has 2.87%
    All others seem to just have high rates for first few months, or screw you on withdrawals (like RAMS).
    ING Savings rate at 2.8% is still better than all their personal term deposits, bar their 2 year one (2.90%), so perhaps the 2.8% isn't too bad in view of all other choices in Australia.
    I won't be closing my Savings acct with them, but perhaps the thing to do is just empty it out apart from a token amount.
    I'll be pouring it all into UBank, at least until they drop their rates again.

    • +3 votes

      (Thanks to the people at Whirlpool and idonotknowwhy)[https://www.ozbargain.com.au/comment/4878496/redir]
      for pointing out this spreadsheet

      maybe try AMP Bett3r for 3.0%?

      •  

        Thank you, foundit and idonotknowwhy. Just briefly checked the AMP Bett3r account. It has 3 linked accounts - PAY, SAVE and SPEND. Not quite clear to me why one would need 3 accounts, surely 2 is enough. The conditions do reflect this, by allowing the debit card to be linked to PAY or SPEND.

        Looks like the intention is :
        - Bill Payments to be made from the PAY account
        - spending using debit card from the SPEND account.

        • +2 votes

          You are welcome Bluesky

          From my read it's

          3.0% p.a. in your SAVE account (if you meet all bonus requirements and limitations).

          Some people like to set aside funds for bills, building up what they set aside. That's what the PAY account is for. Note though, this account only pays 1.5% p.a. My preference would be put it all in the SAVE account and take it out when needed.

          SPEND account I guess is a standard transaction account. 0.0% p.a. on what is in there


          UPDATE: turns out there is a $5 a month fee on the Bett3r Pay account :S

        • +2 votes

          @foundit: Yeah, make sense. Thanks.

          This $5 is waived if you deposit the $2000, according to pg 4 of T&C :

          "Waived if you deposit your salary (minimum of $2,000 per month excluding transfers from within your AMP Bett3r Account)"

        • +1 vote

          @bluesky:

          Thank you :)

        • +1 vote

          @bluesky:

          Thank you :)

  • +4 votes

    Don't trust ING - after they got rid of the 2% cash back i havent used and refuse to use anything they promote.

    They're a short term bank they have a good deal on but once it gets popular they absolutely destroy it - they do this to rope in customers so they take up loans - You cant trust a business that can basically f*** over its loyal customers any minute.

    My advice is stay away far away for the effort it takes to change banks they dont offer anything worth it

    • +3 votes

      Pretty short-sighted advice. Do you have any better option? Probably not. You just want to complain and ignore the fact they're still the most generous bank.

      •  

        Short sighted is to say any bank is 'generous'. Without questioning it…

        • -1 vote

          Mate I think you forgot to mention the better option.

          You advised people to stay away from ing. So assuming they want to use a bank, which one should they use, buddy?

        •  

          @watwatwat: ME bank has been quite consistent with offering a high interest rate (I believe it's the highest at the moment).

        •  

          @ascorbic:

          HAHA you mean if you perform a paypass transaction every week otherwise you lose a month of interest? Youre a joke. I guess you forgot to leave out that crucial information.

          I'll sit back and relax without worrying about performing any transactions and not having to use mebanks crappy app.

        • +1 vote

          Go with Ubank and get 2.87% then. I don't know why you're so defensive towards ING.

        • +2 votes

          @ascorbic:
          Yes, and they'd have most of my money if it didn't require that stupid "tap and go" thing.

    •  

      don't be loyal to bank, the bank will not be loyal to you.

  •  

    In case of interest, you can still get 3 - 3.3% Term deposits with Rabodirect over 3 - 5 years.
    https://www.rabodirect.com.au/rates/personal-rates/#c6cc6ab9...

  1. shaybisc on 14/07/2017 - 16:56
  2. plmko on 14/07/2017 - 14:39
  3. shaybisc on 15/07/2017 - 07:32
  4. Timbo94 on 14/07/2017 - 17:04
  5. smarioc on 14/07/2017 - 16:42
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