ING to Close Popular 'Barefoot Investor' Savings Account to New Applicants

ING will stop accepting new applications for its Savings Maximiser account, a product popularized by personal finance author Scott Pape, known as The Barefoot Investor. The change will take effect on December 1, but current account holders will not be affected.

The Savings Maximiser account has been a fixture on the market for over 17 years and is known for offering high interest rates, currently up to 5.75 percent. Eligibility for the top rate requires customers to hold an ING Orange Everyday Account, deposit at least $1,000 from an external source, make five eligible card purchases, and grow their savings balance each month.

ING launched its Savings Booster account in July, offering new customers up to 6.25 percent for the first four months on balances up to $500,000, provided they grow their balance by at least $100 monthly. After the introductory period, the rate on the Savings Booster account falls to 5.65 percent, with the same monthly growth condition.

Jennifer Davies, ING's head of retail, stated that the Savings Booster was developed in response to customer feedback for a more straightforward savings product. "We've been delighted by the strong customer response and uptake since launch, demonstrating the appeal of a simpler way to earn bonus interest while still offering highly competitive returns," Davies said.

However, Sally Tindall, Canstar data insights director, expressed disappointment with ING's decision to phase out the Savings Maximiser. "To see ING kind of take the foot off the accelerator a little bit there, it's disappointing," Tindall told news.com.au. She noted that while the new Savings Booster account has simpler conditions, savers might earn less interest overall.

Tindall suggested that changes in the savings market indicate banks may be adjusting rates and conditions to reduce the interest they pay. "What we're seeing at the top end of the savings town is banks starting to change things up a little bit and in many cases it appears to be in order to pay a little bit less interest than they otherwise would," she said.

Pape, author of The Barefoot Investor, has previously cautioned consumers to compare banks and ensure their savings are in competitive accounts, likening bankers' behavior to an instinct to profit from customer deposits by shaving interest rates and adding conditions.