ING Overhauls Savings Accelerator Interest Structure: What You Need to Know
ING is set to implement a significant shift in how customers earn interest on their popular Savings Accelerator accounts. From 1 May 2026, the bank will transition from its current tiered interest system to a new stepped-interest rate model. This change promises potential benefits for everyday savers with smaller balances, while those with substantial amounts in their accounts might see a reduction in their earnings.
Understanding the Current System
Currently, the ING Savings Accelerator operates on a tiered interest rate structure. This means the single variable interest rate applied to your entire account balance is determined by the total amount deposited. The higher your balance falls within a specific bracket, the higher the interest rate applied to the whole sum.
As of 27 March, the existing tiers and their corresponding annual percentage rates (p.a.) are as follows:
- $0 to $49,999.99: 2.75% p.a.
- $50,000 to $149,999.99: 3.65% p.a.
- Above $150,000: 4.60% p.a.
Under this model, a customer holding $150,001 could potentially earn around $6,900 in interest annually. In contrast, someone with a balance of $149,999 would receive approximately $5,475 per year, highlighting the impact of crossing the threshold into the highest tier.
The New Stepped-Interest Model: A Closer Look
The upcoming change, effective from 1 May 2026, will introduce a stepped-interest structure comprising four distinct tiers. The key difference is that under the new system, different portions of your balance will earn the interest rate applicable to their specific tier, rather than a single rate applying to your entire balance.
The proposed new stepped interest rates are:
- Tier 1: $0 to $250,000: 4.60% p.a.
- Tier 2: $250,000.01 to $500,000: 4.60% p.a.
- Tier 3: $500,000.01 to $2,000,000: 4.60% p.a.
- Tier 4: $2,000,000.01 to $5,000,000: 2.50% p.a.
ING has clarified this new approach, stating, “This means if your balance falls across more than one tier, each portion of your balance will earn the rate for its tier instead of one single rate across your whole balance.”
How the Stepped Model Works in Practice
To illustrate the new structure, consider a Savings Accelerator account with a balance of $100,000. This balance falls entirely within Tier 1, so the entire $100,000 would earn the 4.60% p.a. rate.
However, for a customer with a $550,000 balance, the calculation becomes more intricate:
- The first $250,000 would earn interest at the Tier 1 rate of 4.60% p.a.
- The next $250,000 (bringing the total to $500,000) would earn interest at the Tier 2 rate of 4.60% p.a.
- The remaining $50,000 (from $500,000.01 to $550,000) would attract the Tier 3 rate of 4.60% p.a.
For an even larger balance of $2,100,000, the interest earnings would be calculated as follows, based on the rates outlined in the change notice:
- The first $250,000 earns at 4.60% p.a. (Tier 1).
- The next $250,000 earns at 4.60% p.a. (Tier 2).
- The subsequent $1,500,000 earns at 4.60% p.a. (Tier 3).
- The remaining $100,000 earns at 2.50% p.a. (Tier 4).
In essence, the first $2 million of the balance would earn 4.60% p.a., while any amount exceeding this threshold would be subject to the significantly lower 2.50% p.a. rate.
Winners and Losers Under the New Structure
The shift to a stepped-interest model is likely to benefit a large segment of ING’s customer base. Everyday savers with balances below $250,000 can expect a notable increase in their interest earnings, moving from the current 2.75% and 3.65% rates to the higher 4.60% p.a. rate across their entire balance.
Conversely, customers holding substantial sums in their Savings Accelerator accounts, particularly those exceeding $2 million, may experience a considerable drop in their interest returns. The introduction of a 2.50% p.a. rate for balances above $2 million represents a sharp decrease from the current 4.60% p.a. that applies to all balances $150,000 and over. For instance, a customer with a $2.1 million balance could see their annual interest earnings reduced by approximately $2,100 under the new structure.
It is crucial for all customers to note that ING has cautioned that these new variable rates are subject to change before the official rollout on 1 May 2026. The final confirmed rates will be communicated through the bank’s app, online banking portal, and official website on the effective date. Savers are advised to monitor these channels for the most up-to-date information.
