ING Direct has launched Savings Accelerator (SA) - a new, high-interest savings account.
As of last Friday, SA is offering yearly returns of 7.25 per cent for accounts over $50,000 and 6.50 per cent for those under.
The product does not have a fixed term, so money can be shifted between SA and a linked account of an Australian financial institution at any time.
Salaries, dividends, tax refunds and rental income can be swept into the product automatically, with interest being calculated daily.
Clients can choose to set up an automatic savings plan, where a certain amount of money is transferred to SA on a weekly, fortnightly or monthly basis from a linked bank account.
SA interest rates are aligned with those in professional money markets and may be subject to change more frequently, according to ING Direct.
The firm, along with wealth management firm and dealer group giant ING Australia, are owned by Netherlands-based ING Group, the world's ninth-biggest company.
Banks are increasingly looking to attract more clients to saving accounts to help them cope with a global cash crunch, which has cost the independence of firms from Belgium's Fortis to United Kingdom's Bradford and Bingley.
On October 1, National Australia Bank (NAB) launched UBank, which offers a three-month term deposit at 8.50 per cent per annum.
