MONEY MINDER OF THE YEAR ING DIRECT
It’s tough getting a decent return these days but this all-rounder stands out from the pack
With interest rates on cash accounts barely higher than the rate of inflation, it’s important to make sure you’re getting the best deal possible from your banking institution. This means a fee-free account is a must! Unfortunately as Canstar’s analyst Joshua Sale says: “We probably don’t review our bank accounts as often as we change our spending habits.” We should because, as our winners show, there are accounts that work very well in meeting our everyday banking needs.
Our Money Minder of the Year award goes to an all-round performer that is able to meet the needs of customers’ short-term and long-term savings goals. ING Direct takes the title for the second time in a row for its continued ability to provide customers with competitive rates and incentives to save.
According to Sale, one of ING Direct’s standout products is its Orange Everyday account, which is one of only a few on the market that guarantees zero ATM fees across the board. If you deposit $1000 or more each month into your Orange Everyday account, you’re eligible to receive a rebate for any fees charged at foreign ATMs. This account also has zero account-keeping fees for greater peace of mind.
“The Orange Everyday account would be particularly attractive to consumers who make ATM withdrawals and don’t want the hassle of having to find their brand of ATM,” says Sale. “When this account is paired with their Savings Maximiser, consumers can earn up to 3%pa in interest, which is one of the top rates available in this ultra-low-rate environment.”
If you own an iPhone, you’d be happy to know that ING Direct is one of 14 banks that have partnered with Apple to offer customers Apple Pay. ING Direct is also partnered with Android Pay, so you can leave the wallet at home and make purchases on the go by simply using the near-fieldcommunication chip installed in your smartphone.
ME was our runner-up in this category, with high rankings for its online savings account and term deposits.
Sale says ME’s Online Savings Account has the highest interest rate on the market (at the time of writing). To access the full earn rate, you must also open an Everyday Transaction Account and make regular purchases from this account.
“ME bank’s Online Savings Account offers a conditional variable rate of 3.05%, which is the biggest in the market,” says Sale. “However, it requires a weekly tap-and-go transaction on the linked Everyday account, otherwise the rate will revert to 1.30%pa for the month.”
ME also offers a range of term deposits with the highest rate of 3%pa available on terms between two and five years (paid at maturity). Term deposits in a low-rate environment don’t always look particularly attractive, but if the rate is high it could be a way of locking in a decent return for a lot longer than the variable rate on a savings account. MOVE – People Driven Banking came in third, ranking highly for its online savings account. MOVE’s Express Saver Account happened to win two Best of the Best awards last year: Best Savings Account (Non-Bank) and Best Savings Account – Regular Deposits (Non-Bank).