ING announced a reduction in savings account rates starting January 1, citing the European Central Bank’s recent rate cuts.
ING has announced a significant adjustment to the interest rates on its savings accounts, effective from January 1st. This decision, articulated on Friday, is a direct response to the European Central Bank’s ongoing policy of rate reductions, which has reverberated throughout the financial landscape.
The ING Tempo Savings account, an online regulated savings vehicle that permits customers to deposit a fixed sum of up to €500 monthly, currently boasts an annual base rate of 1.20%, complemented by an annual fidelity premium of 1.80%. However, come January, these figures will experience a downward shift, with the base rate decreasing to 1.05% and the fidelity premium to 1.70%.
In a similar vein, the ING Savings Account, which traditionally offers a basic annual rate of 0.50% alongside a fidelity premium of 1.75%, will see its base rate slashed to 0.25%, while the premium will be reduced to 1.50%.
Lastly, for the ING Orange Savings account—now a relic of the past in terms of marketing—the bank will adjust the basic rate to a mere 0.20%, with a loyalty premium of 0.10%. This marks a stark contrast to the current rates of 0.60% and 0.20%, respectively.
As the financial tides shift under the influence of central bank policies, ING’s customers will need to recalibrate their expectations regarding returns on savings, as the era of higher interest rates appears to be waning.
