ING Direct Savings Maximiser: Variable interest rate rises to 6.65% p.a.

19 February 2008

The interest rate on one of the most popular high-interest-online-savings-accounts, the ING Direct Savings Maximiser, has risen to 6.65% p.a. (previously 6.40%). This rate is applicable to all customers, as it is the everyday interest rate.

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9 comments

  • admin EDITOR
    I looked at getting an ING account a while back. Didnt though. Maybe I should now.
  • leny
    I think you'd be better off getting an account with a higher interest rate. ING can keeps theirs low because they have so many customers who can't be bothered changing banks for a better interest rate. I think ING were the ones who kicked off the high interest online savings account mayhem. ING Direct surely was my first one. :)
  • leny
    But the access to the no minimum term deposits is a good advantage. I guess that since it has no fees, you have nothing to lose. :D
  • nod
    ]Raboplus Term deposit now offer cashback :) rate is up to 7.75% at the moment
  • girltalk
    Wow 7.75% is amazing! But I've never heard of Raboplus so I'll stick to my ING account. How does Raboplus make money if it charges no fees and offers a rate above the current cash rate???
  • trevorf
    girltalk;38605
    Wow 7.75% is amazing! But I've never heard of Raboplus so I'll stick to my ING account. How does Raboplus make money if it charges no fees and offers a rate above the current cash rate???
    They invest in other securities which attract higher gains? (I'm just guessing).
  • port
    girltalk;38605
    But I've never heard of Raboplus so I'll stick to my ING account.
    RaboPlus is a division of Rabobank, the biggest agricultural business bank in the world.
  • port
    girltalk;38605
    Wow 7.75% is amazing! How does Raboplus make money if it charges no fees and offers a rate above the current cash rate???
    That rate is for a term deposit (actually, best they offer is now 8.05%). They're taking a bet on whether the cash rates will go up, and thus they'll be able to charge their customers more for the money they lend to them. 7.75% isn't as special as it was, as you can get TD's from big banks at similar rates (e.g. 7.6% for 24 months from ANZ). And RaboPlus only have to staff a call centre and provide back office and IT services, not a whole branch network, pay for card manufacture etc etc. So they have lower overheads as well. Of course, in the on-line market, I'd say that your major bargaining point with customers is the rates. After all, you only need to look at how successful ING was to see that. :)
  • admin EDITOR
    they can get some fairly hefty returns on playing derivatives as well. Short term - fairly high risk currency trades are paying the region of 10-12% at the moment.

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