20 transactions for bonus interest: New Westpac savings hoop
Westpac Life savings account customers, aged 18-29, have received notification that bonus interest conditions will change from 1 November.
Account holders will now need to make 20 or more transactions a month to qualify for the top Spend&Save bonus interest rate, totaling 5.00% p.a.
That's up from the current monthly requirement of five transactions, the standard for many transaction-linked bonus savings products.
The Spend&Save bonus interest rate of 0.75% p.a. is paid on balance amounts up to $30,000.
See also: The different types of savings account interest rates
But that's not all
As well as the new transaction target, account holders will still need to meet the Life account's current bonus conditions:
- keeping the account balance above $0 at all times
- making a monthly deposit into the account (interest paid doesn't count)
- the balance must be higher at the end of the month than the beginning
They will also need to hold Westpac Life and Westpac Choice accounts in their own names, as joint accounts are not eligible and only one Spend&Save offer applies per customer.
If the conditions aren't met, customers will receive the base rate of 0.25% p.a.
If they meet the dot point conditions but not the transaction target, they will still receive the additional bonus rate of 4.00% p.a. but not the top rate of 5.00%.
As part of the changes, Westpac has informed customers it is also extending the eligibility age for Life accounts to 18-34-years-old - five additional years than the current 18-29-years.
Online reaction
Consumer finance forums have reacted to the news with one user on Whirlpool labelling the new 20 transaction requirement "disgusting".
InfoChoice financial product analyst Harrison Astbury said the ongoing conditions attached to receiving bonus savings interest show no sign of letting up.
"Ever since the ACCC found upwards of 7-in-10 savers don't meet their bonus interest criteria, the instance of hoops on savings accounts only seems to have increased - first Ubank, then Up, now Westpac Life," he said.
"It's not wholly surprising, given retention of customers in this environment is paramount for banks - but for customers, it's disappointing, and if they are outraged, I'd encourage them to find banks with a more hoop-free approach to getting interest on their savings."
See also: Are you missing out on bonus interest?
What are eligible transactions?
Eligible transactions to achieve the Spend&Save bonus include using a physical debit card, PayPass, Apple Pay, Samsung Pay, Google Pay, Garmin Pay, and Fitbit Pay.
Online debit card purchases also count.
However, ATM transactions are not eligible nor are those using PayID, BPAY, EFTPOS cash-out transactions, direct debits, or transactions to pay off a credit card.
For customers who have multiple Westpac Life accounts, only the earliest opened account is eligible for bonus interest.
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| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
0.05% p.a. Bonus rate of 5.30% Rate varies on savings amount. | 5.35% p.a. | $1,097 | – | $0 | $249,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
2.25% p.a. Bonus rate of 3.15% Rate varies on savings amount. | 6.00% p.a. Intro rate for 4 months then 5.40% p.a. | $1,134 | 4 months | $0 | $499,999 | $0 | $0 | $0 | Promoted | Disclosure | |||||||||
4.00% p.a. | 5.90% p.a. Intro rate for 4 months then 4.00% p.a. | $936 | 4 months | $0 | $249,999 | $0 | $1 | $0 | Disclosure |
