Has there been another reserve bank interest rate reduction?
In any case, ING will be reducing their interest rates on the Savings Maximiser from 1.80% pa to 1.65% pa.
ING Savings Maximiser Interest Rates To Reduce From 30th July 2020
OzyBe on 29/07/2020 - 14:19
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it's crap. Was 3.8% a few years ago. Better off investing elsewhere now…
It is a resulting combination of RBA decisions, economic performance, and the lack of any other stimulus measures by the government.
But it is still a return on your investment, with the security that cash provides.research bailin
Does that mean it is better to pay off your student loan now if you've got the money?
Indexation rate at 1.8%
https://www.ato.gov.au/Rates/Study-and-training-loan-indexat…
I'd say now is the best time to pay down debt given you'd still be paying tax on the 1.8% ING savings rate.
Note that this last quarter's CPI (indexation) was -1.9%. This should result in a negative interest charge for your HECS debt
True, although they add interest based on an annually-averaged CPI (average over the 4 quarterly results) with interest added on 1st June each year. Hoping that the 2020-2021 annual inflation is very low.
Not if you've got other debts… From memory, HELP loans were the lowest in interest, so it was always better to pay off any other debts you might have - eg personal loan, credit cards, even the home loan.
It's the only debt I have (at the moment), I am too poor or bargain-conscious to get into other debts just yet.
BOQ also cut their fast track starter savings account rate from 2.85% to 2.5% and their fast track saver from 1.85% to 1.65%
I'm freeing myself of having to deal with their antiquated internet banking and mobile app
Do you happen to know when this BOQ rate change happened? Recent? They sent out an email only yesterday, yet no mention of this at all. At least ING is good - email update whenever rate changes.
I believe they lowered the rates around the 21st of July. They are quite sneaky, I received no actual communication from them regarding the lower rates. Only saw it when I checked the BOQ website that advertises those savings accounts
Thanks for the info, which narrows down the timeframe. The website does not seem to have any info about when the new rate took effect.
To be accurate, it's actually the bonus rate being reduced to 1.65%. This is on top of the basic rate of 0.1%.Oops, my mistake, I misread the email.
ING recently reduced their mortgage rates to new borrowers, so to help protect their net interest margin they would need to reduce deposit rates.
Nothing to do with the RBA
Anyone know when ING changed the cap from $250,000 down to $100,000? Places like UBank and MQ is still $250,000. Right now ING is 1.65% vs 1.55% with uBank vs 1.35% MQ.
I was happily enjoying the 2.6% bonus rate from MQ until it finished a week ago and so was going to start loading up ING when I noticed the changed cap.
Anyone else know of a financial institution that offers better interest rates?
As far as I am aware, the cap has always been $100K. Ubank was $200K, then changed it up to 250K a few months ago.
I think you're right re ING. Perhaps danielh is confusing it with the government guarantee on bank deposits, which is capped at $250,000.
Hmmm, maybe you guys are right. I'm too used to 200 or 250k caps.
Just received an email from ING that from 25 Sept, the interest rate will be reduced again to 1.50% (0.1% standard + 1.4% additional). The rest of conditions stays the same (up to $100,000 on balance, $1000+ deposit + 5 card purchases each month).
They announce this on the first Tuesday of every month.