If you’ve read Scott Pape’s Barefoot Investor, you will know about ING’s Savings Maximiser Account.
Even if you haven’t read Barefoot Investor, you might have still heard about it from someone who has.
The popular savings account has been attractive for its non-existent fees and high savings interest rate of 2.8 per cent, which beats out all the big banks.
At the time, it would’ve been the fifth-best savings account on the market after Rabobank (3.05 per cent), Citibank (2.90 per cent), UBank (2.87 per cent) and HSBC (2.85 per cent), according to Finder.
However, it hasn’t been immune to the Reserve Bank’s interest rate cut that saw the official cash rate drop to a historical low of 1.25 per cent.
Following the rate cut, ING has announced it has dropped the maximum interest rate of its Savings Maximiser account by 25 basis points, from 2.8 per cent to 2.55 per cent.
The base rate, also known as standard variable rate, is officially 0.75 per cent, while the bonus interest rate is 1.80 per cent.
But to clinch the bonus interest rate, you’ll have to have an Orange Everyday bank account linked, deposit $1,000 or more every month, make five or more purchases with their linked account every month, and not exceed $100,000 in your account balance.
“We review our rates regularly to ensure we are best placed to provide our customers with simple, effective banking products,” an ING spokesperson told Yahoo Finance.
ING is passing on home loan rate cuts to variable home loan products on 25 June, while the changes to the Savings Maximiser accounts are effective from 17 June 2019.
NAB and CBA have also passed on rate cuts to their savings accounts.
Here are the top savings accounts, according to Finder:
With so many attractive options on the market, could it be time to rethink the cult popularity of the ING’s Savings Maximiser?
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