ING Direct introduces mortgage cash-back offer

ING Direct has made another move in its bid to increase the number of customers who use the bank as their main financial institution, with the launch of a cash-back offer for mortgage customers.

From May 1, Orange Advantage Offset Home Loan customers will receive a one per cent rebate on their monthly repayments (up to A$3000).

The standard variable rate on the loan is 5.09 per cent.

To be eligible for the rebate, customers must also have an Orange Everyday transaction account and deposit salary of at least $1000 into it each month. The rebate will be paid into the transaction account.

ING Direct has made a couple of similar moves to try and increase customer loyalty and increase cross-sell. Last year it changed its ATM fee rebate scheme so that it was available only to customers who deposit a minimum of $1000 a month into their Orange Everyday transaction account.

Also last year, it dropped a 125 basis point bonus intro rate on its Savings Maximiser product and replaced it with a 125 bps bonus for customers who also have an Orange Everyday account and deposit a minimum $1000 a month.

The bank has reported good results from these programs. Orange Everyday account numbers grew 34 per cent in 2013 and 40 per cent last year to 270,000.

The number of customers with more than one ING Direct product also grew 40 per cent last year.