It's finally happened, ING has dropped the full 25 points off the Savings Maximiser interest rate. It seems like a bit of a joke that they still expect a minimum $1000 a month deposit and 5 card transactions to get the bonuses.
Update 08/07/2019 — rate dropped to 2.30%.
Good try.
But Credit Cards interest have gone up, not down.
My ANZ for purchases went to 20.24% (from 19.97%)
Cash rate my foot.
cash rate has always dictated the return on savings accounts. Credit cards banks can do as they please. Its pretty simple. But feel free to doubt me
I don't doubt you. I'm highlighting that the "excuse" for less interest is "cash rate"; so "credit" should also be cheaper. It costs them less to pay others and give credit to customers.
But I agree with you banks do as they please.
I disagree with finding "valid reasons" for their actions.
Is a business, priced as high as people are keen to pay for it.
Still 2.87 at Ubank (with bonus interest), for now anyway.. They dropped home loans by the .25 effective 28 june, so will see what happens then…
they will follow shortly
Now that ME Bank and ING have dropped it will only be a matter of days (or at most weeks) before UBank’s Ultra drops by 25 basis points.
NAB reward saver rate dropped .25 too (from 2.30 to 2.05 with bonus interest rate)
Agree that Ubank will probably follow… :(
Seems banks are reducing rates now by 0.25% (eg BOQ Fast Track Saver 3% down to 2.75%)
UBank have dropped to 2.6 now effective today (June 27th 2019).
Bastards for cutting more than the rate cut from RBA. I blame RBA and Government though.
USaver Ultra 2.87%
To get the bonus rate, you must deposit at least $200 a month into your USaver Ultra transaction or USaver savings account from a non-UBank account
UBank will likely cut soon.
I have a feeling Ubank might follow very soon
Waiting to see which banks drop the rates and which don't. Will probably jump ship.
This appears to be a link for loan interest rate cuts. I was talking about interest paid by banks on savings.
From what I understand, it's completely linked. The RBA dropped the cash rate which affects both the cost of borrowing money and the interest earned on money.
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Up dropped .25% as well down to 2.5% Still pretty good considering the only requirement is 5 transactions.
im surprised its still that high.
I'm looking to move to ubank, but will wait to see how far they drop…
With a market expectation of one or two more RBA rate cuts this year, the Savings Maximiser rate could reach 2.3% or 2.05% before the end of the year.
If this (2.05%) happens then there would not be any point of keeping any savings with an online bank like ING.
Agreed - especially if CPI inflation moves up towards 2%.
At 2.05% you're almost literally getting to the point of getting it out of any bank. Once the good ol' ATO comes along and takes half, you're being asked to accept 1% before inflation and are taking on the risk of bank collapse.
The Australian Government guarantee on consumer deposits, up to $250,000 per institution, is still going.
@Seraphin7: Woah, didn't know this.
So that means at worst case scenario they can only refund 80000 customers…
I am worried now. 😟
That's the point of cutting rates - they want the funds out of banks and going into the economy.
Consumer spending makes up 60% of our GDP. Our economy is hooked on you spending and making the rich richer
What makes you think savings going out of bank will be spent. Savings is savings mate, it's not meant to be spent.
@bigbadboogieman: when savings interest 0% will you still keep your money in bank or invest elsewhere ?
investment = "spending"
@dcep: Depends on how you define "spending". Banks are already investing. If we follow your logic of investment = "spending" then in this case the money is already spent and didn't achieve what RBA wants to achieve.
It seems like a bit of a joke that they still expect a minimum $1000 a month deposit and 5 card transactions to get the bonuses.
Then find another place to stash your cash - competitive market after all.
Either way, not their fault that the cash rate was cut by 25bp.
ING is really troublesome with $1000 deposit and 5 transactions criteria. I quit on them and now very happy with Ubank. I only need to deposit $200, coupled with slightly higher rebates in the last few months.
meh, ubank's p.o.s. internet banking really turns me off them.
Move Bank Bonus Saver is still at 2.9% :)
I'm not sure why it wasn't recommended over ubank, given its higher interest rate
Crap, I completely missed that notice. Thanks for the heads up
Gov wants us to spend not save. Find someone with a mortgage and park your spare cash there.
Or everyone pool your savings and invest it.
It's been decades since I've had a cent to invest. It's all in the offset account.
This is a great idea for a Fintech to get their teeth into.
Rams still 2.8% but I'm now on the lookout for when that drops.
Rams announced 2.55 today.
Sigh.
You had better believe that we are following the US, Japan and European Union on dropping interest rates.
Dropping rates in the belief that it will get Aussies to spend will never work.
Look at Japan where rates are around .1 to 0 % on your money, and in Europe, and that has not made people
spend, as lowering rates never will make you spend your savings.
Also many retailers and shops keep putting up prices, then offer a false 20% discount, which is a higher price
than it originally was.
The time to watch out for is when we go into NIRP, and other higher fees or hurdles loaded onto your Accounts,
just to hold your money.
On the subject of having a Govt Guarantee on your bank deposits, is also a joke.
In recent times I was involved with Pyramid Building Society, and lost a lot of money, and it took over 5
years, just to get a trickle back of my money.. and that money was supposedly Govt guaranteed.
You just try and take a large amount of cash out of your Account, and see the hurdles you have to go through,
even if your money is at call.
Shares are not a good idea at the mom but may be after the corrections happens…
A few issues with your warnings…
In recent times I was involved with Pyramid Building Society, and lost a lot of money
Recent?
The Pyramid Building Society… (Farrow Group) collapsed in 1990 with debts in excess of $2 billion. The cost of the collapse to Victoria taxpayers was estimated at over $900 million. A fuel levy of 3c-per-litre was introduced by the Victorian Government to recompense depositors. https://en.m.wikipedia.org/wiki/Pyramid_Building_Society
https://www.guaranteescheme.gov.au/qa/deposits.html
Banks pay a fee for the Federal Government guarantee scheme. A very different situation to just a State government "promise" with very lax oversight of building societies (which were different to banks).
You just try and take a large amount of cash out of your Account, and see the hurdles you have to go through
How big is this "large amount of cash"? Over $10k in cash - it needs to be reported, so expect questions. Much easier not to carry that much cash.
Bank branches need to organise large cash amounts (most don't keep on premises) - just ask ahead.
Have not had trouble withdrawing $10k cash immediately (shopping centre branch I almost never visit). I just filled out a withdrawal form & provided debit card & ID - hardly hurdles. Took a few minutes, as staff had to bring it out to counter. Larger than that in cash should necessarily raise suspicion.
Moved $500k electronically today without any issue.
Australian unity Active saver is offering 2.80% ($250 minimum deposit per month +no withdrawl).
In call today on another matter, AU staff confirmed Rate will change soon… Soon could be worse than ING Savings Maximiser when you pay the fees.
Best to read t&c for the fees you need to pay…
It seems all AU accounts require a linked Australian Unity Transaction Account with…
Monthly account keeping fee Free / $5 per month Free when linked to a home loan or when you deposit at least $1,000 per month (e.g. direct salary credit, or transferring from a non-Australian Unity account), otherwise $5 per month.
That is you don't have an option to deposit directly into the high interest account unlike with ING. So involves monthly fee unless you can avoid it!
Of course $1000/mth (for best rate with ING) needs to be deposited into similar Everyday Account anyway.
Not any more…
Fell last night as predicted to 2.55%
Once a major online player like ING drops - others will follow.
Dont you guys have mortgages with offset accounts, or shares? Why is this even talked about,,,,,
Financial advice carries an apt warning that everyone's circumstances are different, & seek independent advice before investing. What suits one group, won't suit others!
UBank have now dropped from 2.87% to 2.6% as of today.
Can someone tell me of I link my ING card with Opal auto top-up, that count against the x5 requirement for using the ING card within the month to get the bonus rate (of course also adding $1000 to Maximizer acct)
Yes it does
Down to 2.3%
As of 17 Jul 2019 Ubank’s interest rate is : 2.41 % P.A.
Real bad news for savers.
2.87% to 2.41% in less than three weeks!
what were you expecting when the cash rate was dropped by .25%?