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Savings Maximiser 4.80% p.a. Interest on Balance up to $100,000 (Monthly Deposit, Balance & Spend Requirements) @ ING

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Savings Maximiser 4.80% p.a. Interest on Balance up to $100,000 (Monthly Deposit, Balance & Spend Requirements) @ ING
Go to Deal
puglikesabargain on 09/02/2023 - 16:56 ing.com.au (2001 clicks)
Last edited 10/03/2023 - 15:07 by 1 other user

Just Announced - a new rate on Savings Maximiser according to the ING Facebook page and Internet site, a full 0.25 percent increase: https://www.ing.com.au/rates-and-fees/interest-rate-announce…

Effective from Tuesday 14 February 2023 -

4.80% p.a. highest variable rate calculated daily (made up of the standard variable rate and 4.25% p.a. additional variable rate) for customers who also have an Orange Everyday Bank account and do these things each month.

  1. Deposit at least $1,000 from an external source to any personal ING account in their name (excluding Living Super, Personal Loans and Orange One)
  2. Make 5 or more settled (not pending) eligible ING card purchases
  3. Grow their nominated Savings Maximiser balance (excluding interest earned for the current month).

When the criteria is met in a calendar month, the benefits and additional variable rate will apply in the next calendar month. The bonus interest is available on one (1) account for balances up to $100,000.

The standard variable rate is 0.55% p.a (remains unchanged).

Savings.com.au and Open Comparison Leaderboard provide information on other rates currently available in the market - https://www.savings.com.au/news/rba-savers-february-2023 , https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e….

Please note you can open up to nine (9) Savings Maximiser Accounts in the same name but only one (1) can be nominated for bonus interest. You can easily change the nominated account at any time online.

For those who are very near or exceeding the $100,000 balance limit to qualify for bonus interest, one strategy to meet the ING growth requirement is to open and "juggle" two Savings Maximiser Accounts - based on a past OzBargain comment :

"Month 1 (say February 2023):-
SM1: Earns bonus interest. Your SM1 balance is sitting around 100K.
SM2: On-line or through the app, nominate SM2 for the next month (March), then add any amount to grow the SM2 balance

Month 2 (March 2023):-
SM1: No longer earns bonus interest. Move preferred balance to the SM2 on first day of month. Move remaining funds elsewhere.
SM2: Earn bonus interest on your new SM2 balance.

**when you nominate an account to get the bonus it only takes effect from the 1st of the following month. In the meantime you continue getting the bonus on the current account. You need to transfer 1 cent to the new account to meet the balance increase requirement. Then move the 100k (or less if you want a buffer) on the 1st of the following month. Only miss out on the bonus interest on the 1 cent.

**better long term plan is open a second SM account and nominate that for bonus interest in March – you nominate the account prior to the month. Transfer 95k or whatever on the 1st March from your existing SM account"

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closed Comments

  • maverick1 on 09/02/2023 - 16:58
    +6

    Wow!!

    • nismo on 09/02/2023 - 17:18
      +16

      As predicted two days ago
      https://www.ozbargain.com.au/comment/13345181/redir

      recent trends have ING waiting until the Thursday following a RBA decision to announce.
      @jcoccio

    • Yulinma on 09/02/2023 - 18:11

      Yeah, great Valentine’s Day rate. Cheers

      • 1st-Amendment on 10/02/2023 - 10:57
        +2

        Yeah, great Valentine’s Day rate. Cheers

        Only great if you don't understand how inflation works.
        You buying power has decreased by 7%, but the value of your money is only going up 4.8%. You are losing while at the same time thinking you are winning. It's a neat trick…

        • bamzero on 10/02/2023 - 11:46
          +6

          Plus despite the 7% inflation rate, most of the price increases I see at the supermarkets are at least 25%. That extra 0.25% won't go far.

          Call me lazy, but I'm happy enough with Macquaries lower rate (which I expect will increase to 3.95%) without the need to jump through all the hoops.

          • ahoihoi on 11/02/2023 - 13:39

            @bamzero: Macquarie is going from 3.7% to 3.8% from 22 February 2023.
            A 0.1% increase.

        • [Deactivated] on 10/02/2023 - 19:41
          +8

          So you're saying because our buying power decreased by 7%, it's better to get 0% interest than 4.8% interest. ;-)

        • loropy9 on 08/03/2023 - 17:53

          The 4.8% you will gain is also income taxable. So most savers will not even get 4.8% after tax, making the inflation gap wider.

  • JSONBourne on 09/02/2023 - 16:59
    +7

    Inject this into my veins.

  • lilfrodo on 09/02/2023 - 17:01
    +1

    Well done ING.

  • yht on 09/02/2023 - 17:01
    +24

    Before u know it, it will hit 5% soon

    • billsa on 09/02/2023 - 17:19

      but how soon?

      • vodamerc on 09/02/2023 - 17:20
        +26

        28 days

      • chutibuti on 09/02/2023 - 17:29
        +10

        When RBA meet next month 😀

      • Carssun on 09/02/2023 - 20:46
        +2

        yes

    • david6509 on 09/02/2023 - 20:09
      +4

      if BOQ raise by the rba increase we will see 5% before the end of the month

    • sim36 on 10/02/2023 - 15:32

      I'd rather it didn't for the small gain it would bring if it means more pain for the mortgage holders.

      • [Deactivated] on 10/02/2023 - 20:18
        +14

        Instead of pain for savers and potential savers who lost all hope of ever buying a home.

        If they think single digit interest rates are bad they should try paying the recent exorbitant rent increases on a property that will never be theirs, while still having to mow someone else's lawn, trim their trees, wash their house down, clean their carpets, etc. Low interest rates enrich property owners with value and equity increases, and high interest rates enrich the other side - the savers, so some of them can become home owners too, as property prices come down or at least slow. Both sides need a turn on the carousel otherwise everyone is destined to become "eaters of bugs who will own nothing but be happy."

        Those with home loans should have been throwing every spare cent into their equity the last several years, refinancing, consolidating loans, going without, buying secondhand, etc, thus shaving ten$ of thousand$ off their home loan to pay it off years earlier. Anyone who didn't, who wasted these (possibly once-in-a-lifetime) single-digit interest rates, instead buying new toys like cars, holidays, motorhomes, boats, wall-sized TVs… well, what did they think would eventually happen. Had they done so they could now shop around, refinance the lower principle now owing, reducing their repayments, maybe even get free money for switch loan providers, etc.

        There's always winners, losers, and potential losers who instead chose to be winners via some basic planning. It's each individual's choice which category they put effort into becoming a part of.

  • ATangk on 09/02/2023 - 17:02
    +27

    People will still complain about the requirements though.

    • wizzlesticks on 09/02/2023 - 17:12
      +3

      Well, more than anything, the maximum allowed balance is pretty restrictive. But it's fantastic for those starting out with their rainy day fund.

      • FatTofu on 09/02/2023 - 18:08
        +2

        Once reached 100k limit, should I just add 1 cent every month?

        • hodgey on 09/02/2023 - 18:22
          +5

          Most are withdrawing about 7k out on the last day of the month so it sits at 93k, and then on the first of the month, loading the 7k back in. Then on the last day of the month, taking $6,999 out (so it grew by the dollar). ON the first day of the month, put the 6999 back in, so you're getting 100k worth of interest most days, and then on the last day, anyway, rinse and repeat. Me, I forgot to take it out on the last day of my second month, so now, I just add a $1 on the first day of the month and leave the interest in there.

          • Orpheon on 09/02/2023 - 21:59

            @hodgey: Wouldn't this method apply the interest at $93k on the transition from last to 1st day of the month?

            • hodgey on 10/02/2023 - 08:19

              @Orpheon: Nah, interest is calculated daily, so you're getting daily bonus interest on $100k for about 29 or 30 days for the month, and bonus interest for 93k on one day (the last of the month). I just checked my ING now for January when I was going this and I got $339 in Bonus interest and $47 in Interest Credit. I'm not sure if it's one day (last day of month) or two days (first day and last day) @ 93k interest, but the other 28 and 29 are all 100k. I think because interest is calculated at the end of the business day, it's just the one day at 93, not two.

          • DooDah on 10/02/2023 - 09:00

            @hodgey: Wish I new this before I let the account get to 110k

          • anaphylactoid on 10/02/2023 - 23:43

            @hodgey: Silly question but why are you removing 7k and not 5k is this this just giving yourself ample buffer by increasing your account by $1? Appreciate the advice!

            • hodgey on 11/02/2023 - 00:00
              +1

              @anaphylactoid: Spot on, anaphylactoid. 7k is just a bigger buffer. You could certainly go 5.

          • teatea on 11/02/2023 - 13:20

            @hodgey: Most banks allow automation so you could probably automate it.

          • dealer453 on 28/02/2023 - 10:20

            @hodgey: Are you sending the 7k out to the ING everyday account and then back in or you have to send it to a different bank?

        • udyz on 09/02/2023 - 18:45
          +3

          Your mthly interest generated above the $100K will only generate interest at std rate (0.55%) the following months if you add 1c every month.
          ie. $400 interest generated on $100K this month will only generate $0.18(@0.55% pa) instead of $1.6. Its not much but it can add up since there is condition to increase the balance each month.

          From memory, you may need to start juggling 2 Savings Maximiser accounts (activating the second account for high interest for next month and transferring $100K at the start of next month and the remaining to another high interest bank) to ensure you continue to generate the full interest on $100k.

          The step by step process was commented in one of previous ING/Virgin/Ubank posts. Will share if I can find it…

          • puglikesabargain on 09/02/2023 - 18:59
            +13

            @udyz: A strategy to meet the ING growth requirement by opening and "juggling" two Savings Maximiser Accounts - from a past OzBargain comment :

            Month 1 (say February 2023):-
            SM1: Earns bonus interest. balance around 100K.
            SM2: On-line or through the app, nominate SM2 for the next month (March), then add any amount to grow balance

            Month 2 (March 2023):-
            SM1: No longer earns bonus interest. Move preferred balance to SM2 on first day of month. Move remaining funds elsewhere.
            SM2: Earn bonus interest on new balance.

            **when you nominate an account to get the bonus it only takes effect from the 1st of the following month. In the meantime you continue getting the bonus on the current account. You need to transfer 1c to the new account to meet the balance increase requirement. Then move the 100k (or less if you want a buffer) on the 1st of the following month. Only miss out on the bonus interest on the 1 cent.

            **better long term plan is open a second SM account and nominate that for bonus interest in March – you nominate the account prior to the month. Transfer 95k or whatever on the 1st March from your existing SM account"

            • udyz on 09/02/2023 - 21:07
              +1

              @puglikesabargain: Thanks for sharring the strategy :)

              Found the other post too…
              https://www.ozbargain.com.au/comment/12763178/redir

              • [Deactivated] on 10/02/2023 - 21:57

                @udyz: I don't understand why adding 1 cent/dollar is necessary. i.e. You have two accounts, one has $0, the other $100K, and every month you transfer the $100K to the empty account after nominating it to earn interest. So last month one account had $0, month 2 it has $100K, so that's an increase of $100K. So why would transferring one cent be necessary?

            • Just Another Day on 10/02/2023 - 09:17
              +1

              @puglikesabargain: Still doing this and its working well for me. Soon to have 4.8% on my first 100k with my overflow currently going into uBank..might change that soon for a higher rate.

          • seraphim2017 on 10/02/2023 - 14:57
            +1

            @udyz: @udzy how do you open a second savings maximiser? I thought you could only have 1? This would be great if you can stack them as we have to put the overflow into their flex saver at 2.1%

        • xii on 09/02/2023 - 19:29
          +3

          There's plenty of decent savings accounts where you need to jump through a few hoops and have a max balance of $250k. Now are there any banks/financial institutions offering 4.00% + on balances over $250k? I understand that the government-backed safety net only stretches to $250k (I'm willing to take the risk). I'm selling a property and will have over this amount temporarily (6 months max hopefully) as I plan to purchase another property.

    • G-rig on 10/02/2023 - 07:42
      +4

      Hoops..
      Ubank easier.

    • brokenglish on 10/02/2023 - 09:10
      +8

      I was one of those complainers. I thought card transactions meant I have to physically use my card and do a tap.

      It’s not! Online transactions are counted too!
      If you can see at least 5 debit/outgoing transactions made with card in your current day-to-day account, you’re sorted. Just switch it to ING’s card.
      Electricity + Water + NBN already gives you 3.
      Plus UberEats, DoorDash, groceries, you name it.

      The app also gives you status update (count and this month + next month eligibility).
      Very well done by ING to keep track of the bonus.

      Bit the bullet at 4.55% last month.
      4.8% is certainly a no brainer.

      The “hoop” is no hoop at all, it’s so easy.
      The TnCs are written “hoop-like” to cover ING’s ass when noobs go and complain they don’t get the bonus.

      • ATangk on 10/02/2023 - 10:05

        You can also get bills cashback with ING. 1% > nothing

      • deneb on 10/02/2023 - 10:32

        pretty easy to work around, buy something cheap on ebay, or anywhere with afterpay. (I prefer leaving the bigger bills on credit card for rewards points),2 purchases should get you 5 transactions a month.
        schedule transfer $1k, then transfer away a day later. and 1 dollar into saving account monthly.
        Done.

        • Hahuh on 10/02/2023 - 14:20

          I usually break up my payments with PayPal pay in 4. You could also just transfer like $1 5 times with beam it. That counts too.

          • sakurakiks on 12/02/2023 - 23:07
            +1

            @Hahuh: Last time I did 5x beem transfers (maybe 6 months ago) they didnt work, only counted as something more like a bank transfer - unless this has changed back again recently!

          • Chris T on 13/02/2023 - 01:28
            +1

            @Hahuh: According to the Whirlpool thread on ING Orange Everyday + Savings Maximiser, Beem It payments/transfers used to count for this purpose, but not since sometime in 2021.

            • Yola on 13/02/2023 - 02:45

              @Chris T: This is correct. Since then I have done PayPal payments to another person and these work.

            • bamzero on 07/03/2023 - 11:56
              +1

              @Chris T: BeemIt used to use credit card transactions but it was bought by EFTPOS so of course they switched it to use their system and they no longer counted for ING.

      • Ruckmauler on 10/02/2023 - 12:32
        +1

        5x$1 Amazon gift cards work for me.

        • Miyagi on 06/03/2023 - 23:34

          When was the last time you did this? I attempted this 2 days ago, not showing pending however has not reflected as completed 0 of 5.

          • Chris T on 07/03/2023 - 12:39

            @Miyagi: I think there's a problem this month with ING's reporting of the number of qualifying card purchases. I've done some regular in-store card purchases which settled two days ago, yet today it's still saying 0 of 5. Others have also reported this a few days ago.

  • Drakesy on 09/02/2023 - 17:05
    +1

    Imagine owning an investment property and thinking itll outperform bank accounts…

    • ozblogger on 09/02/2023 - 17:06
      +5

      Rates will eventually come down, only if someone offered 5 year fixed term deposit at 5%

    • KnifeEnthusiastBoi on 09/02/2023 - 17:07

      maybe about 10-15 years ago but not anymore.

    • KnifeEnthusiastBoi on 09/02/2023 - 17:10
      +4

      I mean if you invested in shares in NAB for the past 5 or so years, youd have gotten 4.73% div yields, and the share price would have been worth 9% more than when you first invested, so…

    • Tleyx on 09/02/2023 - 17:53
      +4

      Biggest problem with bank accounts is it's all taxed this financial year rather than half later

    • 1st-Amendment on 10/02/2023 - 10:59

      Imagine owning an investment property and thinking itll outperform bank accounts…

      Imagine not understanding how inflation works…

      • Drakesy on 10/02/2023 - 11:12

        So your house is losing money at twice the rate!

        • 1st-Amendment on 10/02/2023 - 11:19
          -1

          So your house is losing money at twice the rate!

          Well I see you want to keep proving my point…

          • Drakesy on 10/02/2023 - 14:27

            @1st-Amendment: Ok i'm intrigued now how does holding an asset thats depreciating as well as costing 5% pa on your loan whilst monetary value is dropping by 7% pa work out better than earning 4% pa on your cash?

            • icarus255 on 11/02/2023 - 09:15
              +3

              @Drakesy: Firstly, rental properties are in high demand and have been for the last 10 years which has raised rent yields. Secondly, the depreciation and the interest is a tax deduction so you are getting an asset that someone else is paying for but you get to claim the depreciation which is a cashless expense and so is the interest if your property is positively geared. I'm not going to go into capital growth and future direction of the property market - that's an endless argument.

              Cash is safe but 4% minus tax leaves you realistically with 3% (even less for some people) and after cost of inflation you are actually losing 3 or 4% each year (in purchasing power at least anyway).

              They're both legitimate asset classes but carry different risks and potential returns.

  • a1234my on 09/02/2023 - 17:08

    This interest rate calculate daily?

    • MiataMx5 on 09/02/2023 - 17:09
      -8

      first day of each month.

    • storms79 on 09/02/2023 - 17:16
      +14

      Yes, calculated daily and paid monthly.

    • theknight27 on 09/02/2023 - 17:19
      -1

      Calculated daily, paid on the first. Just looked into it and it's calculated on the daily closing balance. Does this mean you could theoretically have your money jumping between and earning interest in two different bank accounts with different banks if they had different closing times?

      ING closes at 5pm, at 5:05pm move to NAB, NAB closes at 6pm earn interest from both?

      • JSONBourne on 09/02/2023 - 17:22
        +1

        NPP payments would limit you to doing this only for $2k.

        • freoleo on 09/02/2023 - 21:36

          Can't you just shift it in $1000 increments?

          Seems pointless to do though

      • Niko123456 on 09/02/2023 - 17:28

        Is one of the conditions that you don’t withdraw more than x times in a month?

  • MiataMx5 on 09/02/2023 - 17:09
    +13

    Wow!

    Let's hit 50% next year!!!!!

    • Cluster on 09/02/2023 - 19:26
      +4

      Argentina is already there

  • justtoreply on 09/02/2023 - 17:10
    +10

    I hate the scammy way they do this. The standard variable rate should be 4% and the bonus 0.8%, but they want to rort you of the last month's interest when you move on.

    • devize on 09/02/2023 - 17:11
      +8

      Or you can just move at the start of the month…

    • eckorock on 12/02/2023 - 20:37
      +1

      Agreed, and the onerous conditions has a big impact on people who aren't tech savvy like my mum who dumped her savings into ING about 20 years ago and receives her pension into her savings account but doesn't ever qualify for the bonus interest, because it's too hard and she can't keep up with the criteria.
      I really don't think ING should be celebrated for having a system which seems deliberately designed to catch people out and disqualify them from the interest they should be receiving.

      • Igaf on 12/02/2023 - 22:44
        +3

        Don't disagree that standard savings interest rates are too low but that's what comes with a deregulated industry with no minimum mandated standards (apart from deeming rates).

        The ING setup is neither onerous nor difficult for many/most people to attain (some obvious exceptions), with very little thought or effort required.

        • Does your mum have an Everyday (transaction) account (no fees) AND a Savings (Maximiser) account?
        • Can she deposit $1K per month into the savings account from her pension (all bills can be paid from the linked Everyday account, many via automated transfer)?
        • Does (can) she use her card 5 times a month - eg shopping, supermarkets etc?
        • Can she spend marginally less than she deposits every month (if she has a large amount in savings then interest paid may also need to be taken into account).

        To avoid months where bills accumulate (eg rates, energy, rego…) it's easy to set up regular automatic transfers from the savings to the Everyday account. It's also simple to make one-off transfers to ensure the Everyday account doesn't bottom out.

        ING is obviously an online banking service in Au. As a good son/daughter you'd presumably be able to assist her in setting things up and making her comfortable with the ING system.

        Take it from me it's not rocket science and with fairly regular spending patterns the bonus isn't that difficult to attain for many people, if not every month.

        • Yola on 13/02/2023 - 02:49

          If she really cannot do this get her to make all of her deposits into ubank. As long as her pension is $200 per month or more she is set. If she can use ING she can learn ubank. It really is a shame for her to miss out on a lot of interest. Show her exactly how much money she is losing. If she is unwilling to change banks maybe get her to give you access to the account so you can do what is necessary to earn the interest.

          • eckorock on 13/02/2023 - 11:17
            +2

            @Yola: We recently finally convinced her to withdraw part of her money from ING and put it in ANZ Plus which is offering a good rate. Unfortunately ING has sticky marketing because she still feels like she's missing out by not having her money in there.

            • Igaf on 13/02/2023 - 13:38
              +1

              @eckorock: Not sure why you're targeting ING. There are many similar financial products with interest boosts and hoops to jump through at other institutions. They aren't for everybody.

              • eckorock on 13/02/2023 - 15:42
                +1

                @Igaf: Because to me it looks like a bait and switch. Why do they have to make the base interest rate 0.8%? That's purely deceptive. And what of all the older people who put their money in 10 or 20 years ago when there were no hoops?

                • Igaf on 13/02/2023 - 16:17
                  +2

                  @eckorock: Banking has changed considerably in the last 20 years. As I said this is a new product not confined to or invented by ING afaik. ING would have advised customers of new rates and conditions so it's neither bait and switch nor deceptive. Base rates have always been relatively low and there are plenty of alternative products without hoops elsewhere, all of which have significantly lower rates. Some even charge you for loaning them your money! FIs could never raise the capital their customers loan them at such favourable rates.

                  FIs rely on "loyalty" and customer inertia - same as private health insurance providers and energy companies - and will continue to "screw" customers until they see people voting with their feet, but ultimately the responsibility and power is in customers' hands. If you don't exercise that power then there's only one person to blame.

                  There are quite a few websites which compare financial products - mozo, canstar etc - so really not much excuse for complacency.

                • Igaf on 15/02/2023 - 11:52

                  @eckorock: This might be of interest.
                  https://www.smh.com.au/politics/federal/commercial-banks-enj…
                  Another reason why the Reserve Bank needs a shakeup.

  • Hellhound2042 on 09/02/2023 - 17:10

    Great news! though Anyone else getting slogged with the 'resident withholding tax' fee each month…?

    • Wizard on 09/02/2023 - 17:13
      +16

      Update your tfn with your bank.

      • Hellhound2042 on 09/02/2023 - 19:40

        Thank you the tip Mr Wizard :)

    • bgbrendan on 09/02/2023 - 17:31
      +1

      You're a non resident or no tfn

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