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Many Australians believe they’re growing their savings with attractive interest rates offered by major banks, but new insights reveal that a majority are missing out on those “bonus” returns. At the center of this controversy is ING, one of the country’s most popular savings account providers, which has been criticized for not alerting customers when they’re about to lose their bonus interest rate. While the bank promotes a generous 5% annual interest, most customers aren’t receiving it—and the reasons reveal a deeper issue in the nation’s banking practices.
I. Hidden Complexities Behind High Interest Promises
1. The Illusion of a 5% Return
ING’s Savings Maximiser account advertises a top-tier interest rate of 5% per annum—among the highest offered to Australian savers. However, to receive this full rate, customers must meet strict monthly conditions: deposit at least $1,000, make five transactions, and increase their account balance. Failing to meet even one of these requirements results in customers receiving a base rate of just 0.05%.
For someone with a $20,000 balance, missing the monthly requirements means earning just 80 cents in interest instead of $80—a massive difference.
2. Lack of Real-Time Alerts
Although regulators have urged banks to introduce real-time alerts warning customers when they’re at risk of losing their bonus rate, ING has declined to implement such a system. Instead, the bank says customers can use its app to manually check their eligibility. Critics argue this places the onus on customers to track conditions without sufficient guidance, ultimately benefiting the bank.
II. Regulatory Concerns and Industry-Wide Patterns
1. ACCC Recommendations Ignored
In 2023, the Australian Competition and Consumer Commission (ACCC) highlighted that nearly two-thirds of savers were failing to meet bonus conditions. The ACCC recommended mandatory real-time alerts and annual prompts to encourage customers to review their accounts and consider better-suited financial products. However, banks like ING have yet to fully embrace these recommendations.
2. Government Push for Reform
Labor MP Daniel Mulino, who now serves as Assistant Treasurer, released a report in 2024 calling for tighter regulations around savings rates. He proposed a trial system of customer notifications to improve awareness of conditions tied to bonus interest rates. Although the Albanese government has committed to reforms, it is still in the process of negotiating changes with banks.
III. A System That Benefits the Banks
1. Customers Lose Interest, Banks Gain Liquidity
The failure to qualify for bonus interest doesn’t just affect customers—it directly benefits the banks. Funds held in accounts not earning bonus interest can be used by banks to fund other areas of business, such as mortgage lending. This effectively allows banks to access capital at little or no cost.
Olivia McArdle, head of deposits and payments at Macquarie Bank, acknowledged that complex monthly requirements are one of the biggest barriers to Australians earning the returns they expect.
2. Real Cases, Real Losses
One ING customer recounted how he lost thousands of dollars in potential interest. Despite consistently meeting monthly conditions, he wasn’t aware that the bonus interest only applied to the first $100,000 of his balance. By 2025, his account had grown to $185,000—meaning $85,000 of his savings had earned a mere 0.05% for years. That oversight cost him roughly $4,000 annually.
“I just felt sick,” he said. “They notify you about everything else except the most important thing.”
While ING maintains that customers are informed of the $100,000 cap upon sign-up, critics argue this crucial detail should be emphasized more clearly, especially as balances grow over time.
IV. Complexity as a Barrier to Access
1. A Maze of Conditions
According to financial comparison platform Canstar, typical bonus savings accounts in Australia offer a combined interest rate of around 4.2%. However, the base rate of these accounts is often as low as 0.2%, making the bonus component crucial. Unfortunately, these accounts have become increasingly complicated over the years.
Rachel Wastell, a personal finance expert at Mozo, likens the situation to “studying for a test without knowing the subject.” Without clear and consistent guidance, many Australians are effectively set up to fail.
2. Conditional Accounts on the Rise
More than half of all savings accounts now come with conditional bonuses. These accounts surged in popularity after 2010, but their terms have become more opaque and increasingly difficult to follow. As banks reduce their base interest offerings, customers must navigate a growing list of requirements just to secure a decent return.
V. Consumer Advocacy and Calls for Transparency
1. Push for Mandatory Alerts
Experts are calling for stronger consumer protections. Wastell argues that all banks should be legally required to notify customers before they lose bonus eligibility. “Australians deserve a heads-up when they’re about to lose a chunk of their returns,” she said.
While some of the “big four” banks have introduced push notifications and email alerts to help customers stay informed, not all providers have followed suit. ING, despite having one of the most used in-app eligibility checkers, has chosen not to implement proactive alerts.
2. Banks Lack Motivation to Change
The absence of mandatory regulations gives banks little incentive to improve transparency. As long as customers unknowingly miss out on bonus rates, banks benefit by saving on interest payments. The current system, critics argue, is skewed in favor of financial institutions at the expense of their customers’ returns.
Conclusion: A Broken Promise in Plain Sight
Australia’s savings account system, once viewed as a safe and reliable way to grow personal wealth, is increasingly under fire for practices that disadvantage ordinary savers. ING, despite offering some of the highest promotional interest rates, is a prime example of how complexity and poor communication can lead customers to unknowingly miss out on significant earnings.
While government bodies, including the ACCC and the Albanese administration, have identified the issue and proposed reforms, real change remains slow. Until banks are compelled to issue real-time alerts and improve transparency around account conditions, millions of Australians risk earning a fraction of what they deserve—without ever realizing it.
It’s a system in desperate need of reform, where customers should be empowered with information, not left guessing in silence.
