Breaking news….ING boosts savings account rate to market-leading 5.50% p.a. In usual fashion, ING has responded following Tuesday’s RBA decision, rewarding savers with the full 0.25% cash rate increase, taking its Savings Maximiser account rate to 5.25% p.a. New and existing ING customers are eligible for the new rate of 5.50% p.a. for balances up to $100,000 from 14/06/2023
- Deposit at least $1,000 from an external source to any personal ING account in their name (excluding Living Super and Orange One)
- Make 5 or more settled (not pending) eligible ING card purchases
- 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. Available on one account for balances up to $100,000
For those who want to keep track of the Saving interest rates of various banks and current offers, this open spreadsheet is very helpful…
@liongalahad: DD is available from the OE account, which isn't what you want obviously. No doubt managing money takes time and effort, something many people don't want to deal with for many reasons.
ING wants people using the OE because it maximises their profits, hence allowing them to offer the best savings interest rates. Competition keeps that model in check somewhat. A decent govt would regulate accounts to ensure that even transaction accounts get some interest.
Essentially high interest accounts are being subsidised. Banks would argue that it costs them to manage transaction accounts with low balances but if you analyse where they make their money (card transactions, business fees etc) I doubt that would be a significant factor. They rely on undeserved customer loyalty, which despite all the advice available is still a thing in this country for a couple of obvious reasons - "they're all the same", and "it's a huge pita to switch" (it's less than many think).
Bottom line is that Australian banks have grown used to massive profits - ditto for the gas, oil and mineral corps who sell OUR resources - and will do everything they can to ensure those profits aren't shared. Unlike 50 yrs ago when banks provided services and made "fair" profits, CEOs and senior mgrs are now highly incentivised (many would argue way out of proportion to their contributions) to make sure the status quo isn't challenged. Conservative federal govts are onboard (less so state con govts) and Albanese doesn't have the ticker reqd to shake them up, despite the FI RC and likely upcoming ACCC recommendations.