#FinanceTalk #INGvsuBank #SavingAccounts
Hey everyone 👋! So, I was watching that ING commercial boasting about their 5.5% savings return and thought, “Hmm, seems pretty good.” But then I stumbled upon the latest Saving Accounts spreadsheet and saw that uBank is stepping up their game starting tomorrow with a potentially “better” offer. And let’s not forget about MeBank and MOVE holding their ground at the top too!
Now, here’s the burning question: Are banks like ING and uBank scrambling for more cash to lend out? Or do they already have an abundance of cash and the competition is just a little friendly rivalry? 🤔
I’d love to hear your thoughts on this! Let’s discuss and share some insights. And hey, maybe together we can come up with some solutions that benefit us all 💡.
Let’s get this conversation flowing! 🌊💸.
Isn’t ubank also going to be 5.5%? What are they doing that’s better? Up to $250k?
the only reason i still have my money in ing now is because i don’t want to know how much is in there. i haven’t opened it in a year. i’m with ubank also but the is purely for my emergency fund atm
ING has other offers
Are there any offset accounts which also have a savings rate?
Does uBank offer the other things that ING offer such as free use of all ATMs in Australia including refunding of ATM fees?
For those banks that require you to jump through hoops to qualify for the bonus rate, is the bonus rate only calculated from the qualifying date, or is it retrospective to cover the entire month? In other words, do I get the same monthly yield if I qualify on day 30 as I would for qualifying on day 1?
I think the scummy thing from all the banks is that their default rates are all sub 1% as if we’re still living in pre 2022 despite the RBA cash rate currently at 4.35%.
So you’re literally forced to jump through the hoops to get that bonus rate because if you don’t you get interest rate at sub rba cash rate and banks make their money.
They are probably just moving with “interest rate expectations”
Plenty of commentary around probability of interest rates going up before the end of the year.
“… Skate to where the puck is going to be”
ING used to advertise how you get a great rate and it’s all simple. Now you need to have a savings account and put money here and not there and maybe you’ll get a better rate. I like their savings card for overseas travel but the high interest account is over the top compared to everyone else.
Rabobank still pips them both up to $250k
as someone who banks with ING and ubank, MEbank is looking pretty attractive atm.
In saying that, any bank who drops their rates from now definitely wont be getting a share of my money
Your savings are a liability to banks from a balance sheet perspective. They can create assets that are above their liabilities and they usually do so with housing loans in Australia, but also business loans and credit card loans.
They aren’t competing just in Australia, they’re also competing globally. I have had my money in BIL a US ETF holding 3-month US treasuries so I get close to the Fed funds rate in interest. This is what they’re competing with and why the savings are higher than the Cash Rate that’s set by the RBA.
But how important is this all? It’s likely not too relevant at the moment but banks do need to ensure their customers aren’t moving in a rush for a better yield on their savings so they will stay competitive. The reason why is simply if they have too much capital flight they may have to sell some of their assets, and in an extreme like Silicon Valley Bank the capital flight can become so severe they have to sell off the bank mostly out of fear (emotion) by their customers. It’s much better to just stay competitive so your customers don’t have to even think about moving funds around in the first place, and this is likely what they’re doing.
None of them compare to what I can offer (nudes) if you deposit* your savings to me.
*This is not financial advice. The government will not guarantee any deposits. I’m not responsible for your therapist costs associated with my nudes.