Friday, 29 December 2017

ING Bank - Changes In March 2018





Hi folks

ING Bank (Australia) has long been lauded as the pinnacle of online banking with zero fees and excellent interest rates etc etc.  ING Bank has been openly suggested by Australia's Barefoot Investor and other financial writers to encourage people everywhere to critically review their bank and their bank fees - what great advice too! Indeed I too have openly encouraged friends to dump fee-riddled banking accounts and defect to ING.

However, I was prowling around the ING site last night looking for some info on their interest rates and came across this change in ING's banking due in March 2018.  See if you can see the change.....

Savings Maximiser


Highest variable rate
For customers who also have an Orange Everyday bank account and deposit their pay of $1,000 or more (and from March 2018, also make 5+ card purchases) each month. Available on one account for balances up to $100,000 with the additional variable rate applied the following month.
Here is the link HERE to check this impending change out yourself.

So, as I understand it, for ING customers like me who NEVER use their ING cards to make purchases (I have 100% automation happening with ING), this means I will no longer get the 2.8% interest rate on my Savings Maximiser account. It will drop (presumably) to the base rate of 1.35%.  A subtle but potentially massive change depending on how you have organised your banking with ING.
If you are not using your ING card/s for purchases (at least 5 times a month) and are relying on the high interest rate in your Savings Maximiser account - beware of these changes dropping in come March 2018. You could be VERY out of pocket with your expected interest earnings.
In fairness, banks can (and do) change their terms and conditions regularly and are totally entitled to do so. They need to stay viable and profitable. Zero criticism from me on that front. However, I am  agnostic in my banking choices. If banking changes negatively impact me, I change banks for a better product.

Toshi  - not impressed with banking changes either.


Time to reorganise my banking me thinks.  

Incidentally, I have been sniffing around NAB (National Australia Bank) website lately and notice that the fees on their everyday accounts have gone and they are offering 2.5% for their online savings account (as long as you deposit each month and do not withdraw - which totally suits me) with no such card spending stipulations as are imminent with ING. Here is the link to NAB online savings account HERE and NAB basic transaction account HERE for your independent research. NAB fees are found HERE too.

Just thought I would drop this post quickly in the interests of keeping our frugal community updated as often banking changes can be easily missed.  Moral to the story is - keep an eye on your bank. Banks are businesses not benevolent societies. Treat your banking with a business-like head - AKA rational and mathematical. Reserve your sentiments and loyalty for your family, friend and pets - not banks.

The slow cooker working its
frugal magic.


Hopefully this info has potentially helped someone.......

Take care and stay nice folks.

Mr HM (Phil)

NB: This information was available and the links working at time of publishing this post. Do your own research and validation of the information in this post as I am NOT a financial adviser.

12 comments:

  1. Hmmm ... it's all in the fine print, isn't it! I need to think about a bank account for my son that will be of best benefit to him. He currently has one of those school "savings" accounts that he deposits into each week but I'm keen to change from that when he goes to high school. He has a little job in our neighbourhood where he gets some pocket money and is a really good saver so I'd like to see him earning as much interest on that as possible. Meg

    ReplyDelete
    Replies
    1. I'm very impressed with your son, working and saving. You do realise how rare this is?

      Delete
  2. Have you looked at a Rams online savings account? They have similar conditions to NAB, with a rate of 2.8% so long as you make a deposit of $200/month and make no withdrawals. If you are saving $200/month currently, then you could make .3% more in interest. If you're not saving $200/month then NAB would be the better option.

    ReplyDelete
    Replies
    1. Ha ha jay - would you believe I was on the Rams website when your comment came through!! Yes, it looks like a good product too. I guess the reason I mentioned NAB was that I was surprised that a major bank had got its act together so thoroughly with regards to fees and decent online interest rates.
      I'm on a research 'roll' now looking at several different banking options. I just know that I can no longer use ING for parking my Mojo cash due to their new conditions.

      Delete
    2. Hi Mr Homemaker and Jay we are also with Rams online savings account as well and so far that is the best interest rate we have found.

      If someone finds a better interest rate I would love to know too.

      Sewingcreations15

      Delete
  3. Thanks for the update. I have to say, I find this one of the most trying parts of modern living - the need to keep an eye on everything from year to year. My parents used the same bank, insurance etc... for as long as I can remember as the quality and service provided were consistent. Not so for our generation.

    Madeleine

    ReplyDelete
    Replies
    1. Totally necessary to be on the ball (as they say). As annoying as it is, continual change is now a norm of society it seems - we ignore it at our peril.

      Delete
  4. How annoying for you I am sure you will be able to find another suitable account.
    Oh and I must apologise Phil, I went to publish the comment you left me and hit the delete by mistake (so sorry).
    I have the slow cooker on as well today.

    ReplyDelete
    Replies
    1. Ha ha!! I have deleted readers comments accidentally SO many times too! All good :-)

      Delete
  5. Timely post Phil, we've been away camping, and hubby bought me the Barefoot Investor book for Christmas, I'm hooked! This guy makes so much sense, there's only a couple of things I'm not keen on, but otherwise, he's helped me "see the light" through the fog that is money management! (And I haven't even finished the book yet!)

    I WAS all set to open these accounts, but I will definitely be looking into it a bit further now. I'm excited for 2018, in a monetary sense, I think after years of floundering I might have found a key to the door!

    ReplyDelete
    Replies
    1. What a great book indeed - a wonderful springboard into having full control and mastery of your finances.

      ING is still a great product with zero fees etc, but the very recent announcement re their savings accounts where not even known when Scott wrote his book.

      I'm very happy that you are feeling like that fog is lifting - and hey, you are surrounded with people in our frugal/finance communities who are happy to encourage and advise too.

      Delete
  6. A very timely post Phil.

    We have been ING customers for quite a few years but only with a Savings Maximiser account.

    Savings accounts that offer the ability to set up automatic deposits are best for us but even lazy savers like us have noticed that ING interest rates are not that competitive anymore, when we first joined, we were getting over 4% interest.

    Our everyday banking is with the Police Bank (NSW) so we are going to see what they can offer us.

    Happy New Year to you and your family and keep the informative posts coming.

    ReplyDelete

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