- Bank of Queensland has upped the top interest rate on its Future Saver Account to 5.80% p.a.
- Future Saver is available to 14-35-year-olds although 14-17-year-olds will receive the rate without having to meet bonus conditions
- It is now the highest youth account rate on the market
Effective Tuesday, the bank lifted the bonus rate on its Future Saver Account for 14-35-year-olds by 20 basis points.
It takes the highest rate to 5.80% p.a. on balances up to $50,000 when bonus conditions are met.
To achieve the rate, account holders must transfer a minimum of $1,000 a month from another Australian bank (including salary or wages payments) and make at least five transactions via a linked transaction account.
Bonus conditions are waived for 14-17-year-olds who'll receive the following interest rates regardless:
| Balance | Base rate | Bonus rate | Total rate (when conditions are met) |
| $0-$50,000 | 0.05% p.a. | 5.75% p.a. | 5.80% p.a. |
| $50,000-$250,000 | 0.05% p.a. | 3.05% p.a. | 3.10% p.a. |
| $250,000-$5m | 0.05% p.a. | 0.00% p.a. | 0.05% p.a. |
The Future Saver account does not charge account keeping or transaction fees within Australia.
It automatically converts to a BoQ Smart Saver account in the month an account holder turns 36 (currently paying 5.40% p.a. on balances up to $250,000 when bonus conditions are met).
BoQ joins market's highest rates
Bank of Queensland leapfrogs the market-leading youth account rate of 5.75% p.a., currently offered by Westpac Life for savers aged 18-40 and Newcastle Permanent's Smart Saver account for customers aged up to 24.
Both accounts have conditions attached to achieving their top rates.
However, BoQ's 5.80% comes in under the top savings rate on the market, available to new ING customers who'll receive 6.00% p.a. for the first four months of opening a new Savings Booster account.
The rate applies to balances of up to $500,000 and reverts to an ongoing rate of 5.40% p.a. provided customers grow their account balances by at least $100 a month, excluding interest.
Why are some banks lifting savings rates?
Out-of-cycle lifts in savings account interest rates indicates banks are competing for new deposits.
It's no coincidence it's occurring at a time when new home lending is floundering.
The big four banks revealed in their financial results this month that new home loan applications have plunged between 12-20% since the May federal budget, depending on the metrics used.
Increasing deposit rates is one way to get more money in the door to support bank operations and maintain regulatory funding requirements.
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Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
| 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 | |||||||||||
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 |
