In the competition for customers, the direct bank ING is stepping up the pace: not only new customers, but also those who already have an overnight money account with the institute will now receive three percent interest on newly deposited funds for six months.
Since the interest rate turnaround by the European Central Bank (ECB) in July, banks no longer have to pay interest when they park money at the central bank, but instead make money from it. Therefore, money houses attract new customers, because money can be made with new deposits. Existing customers also get interest on call money again from many banks and savings banks, but usually less than new customers.
All in all, the ECB interest rate hikes are finally reaching savers, said Oliver Maier, the managing director of the comparison portal Verivox: “Depending on the term and market segment, savings interest rates have doubled or even tripled in a few weeks. The rally continues to pick up speed and classic savings investments are finally bringing more lucrative returns again.”
DKB boss: “Fair conditions for everyone”
A three before the decimal point – that hasn’t been the case with call money for a long time. The Spanish Suresse direct bank was recently the first financial institution to call up this brand, as reported by the consumer portal Biallo. There, the offer only applies to new customers and is limited to four months. From the fifth month there is “still above average” 1.75 percent per year, reported Biallo.
The same conditions for existing and new customers are also rarely found on the market. One exception: the direct bank DKB. All customers there have been receiving one percent interest on call money since April. The DKB made a “conscious decision against temporary lure offers, limited investment amounts and unequal treatment” of customers, explained DKB boss Stefan Unterlandstättner. “Instead, we offer fair conditions for everyone.”
When interest rates were low in recent years, excess deposits cost banks money. ING Germany, which had previously lured customers with relatively high savings interest under the name ING-Diba for years, therefore increasingly relied on house bank customers. In the best case, such customers not only park money, but also generate income through mortgage lending, consumer credit or securities savings.
There is an ambitious goal behind ING conditions
In October, ING Germany boss Nick Jue announced the turnaround in interest rates for his company: “We will be the first major bank in Germany to bring call money rates back for everyone.” On December 6, ING started with 0.3 percent interest on overnight money for existing customers, since March 8 it has been 0.6 percent. ING initially attracted new customers with one percent for four months, most recently it was two percent.
At ING Germany, there is three percent interest on new call money accounts for deposits of up to 50,000 euros from the time the money is received for six months. Existing customers get the higher interest rate for every euro of new deposit until April 25 – also up to a maximum of 50,000 euros.
There is also an ambitious goal behind the conditions published by ING Germany today: After a drop in profits last year, the direct bank is aiming for significantly stronger customer growth again. “At today’s interest rates, any growth is profitable,” CEO Jue said in early February. “That’s why an old goal is back: ten million private customers, but now for 2025.” Jue had already issued this target shortly after taking office on June 1, 2017, but later dropped it because of the low and negative interest rate environment. At the end of 2022, ING Germany had just over 9.1 million customers.
