ING Direct has announced that it will raise the interest rates on its savings products, including Savings Maximiser, Term Deposits and Business Optimiser.

The rate on its high-interest, no-fees Savings Maximiser will increase by 0.25%, from 6.15% pa variable to 6.40% pa variable, effective from November 9, 2007. ING DIRECT has also re-priced its range of Term Deposit products. The rate of 30-day term deposit has increased to 6.50% pa from 6.30%. The rate of 90-day deposit has increased to 7% from 6.70%.

In addition to the moves on its personal savings products, ING Direct is also raising the interest rate on its business savings product, the Business Optimiser, by 0.25% pa from 6.10% pa variable to 6.35% pa variable.

Lisa Claes, executive director at ING Direct, said: The household budget is under an incredible amount of pressure and we expect that a higher interest rate may entice more families to start saving. A greater return on their savings dollar, combined with the benefit of no bank fees, may be just the incentive they need. Whilst the latest increase applies to our Savings Maximiser base rate, we are continuing to offer these clients a promotional variable interest rate of 7% pa for eligible deposits until the end of the year.