Virgin Money Australia has launched a new high-interest savings account - the Virgin Money Booster Account - to help customers boost their savings.
The digital bank claims that the 1.5% p.a. rate is the highest introductory variable rate currently available to savers aged 30 years and older.
For under-30s, Westpac currently has a 3% p.a. savings account on balances up to $30,000.
By comparison, Virgin Money's new offer applies to balances up to $250,000.
New customers who open a Virgin Money Booster Account will get a 1.5% p.a. variable interest rate for the first three months.
After that it reverts to 1.2% p.a. if bonus interest criteria is met, which differs by age group:
- 14-17 years: No criteria
- 18-24 years: Deposit $1,000 or more every month with linked 'Go' transaction account and make at least 5 purchases (settled direct debits or BPAY)
- Over 25 years: Deposit $2,000 and as above.
Johnny Lockwood, Virgin Money Australia General Manager Lending, Cards and Deposits, said that this new high-interest rate is available to all age groups as people are looking for more ways to get on top of their finances and save.
"Particularly with the current unique financial challenges they face when going in and out of lockdowns," Mr Lockwood said.
"The Boost Saver account comes bundled with an Everyday Go Account, which means that customers who want to take advantage of our 1.5% p.a. interest rate will also be able to earn Virgin Money points through our Virgin Money Rewards program with every purchase they make on their debit card, and on direct debit and BPAY transactions."
This new savings account comes shortly after Virgin Money announced its digital bank and rewards program in April.
Notable features of the rewards program include an in-app hotel booking system and partnerships with HelloFresh, Menulog and The Iconic to earn points and save money.
Tough luck for savers as CommBank cuts rates again
On Tuesday, Commonwealth Bank cut interest rates on its 'NetBank Saver'.
This is reportedly the 13th time the big bank has slashed this product's interest rate since the pandemic began, from 1.3% down to 0.33%.
CommBank recently announced interest rate cuts on the following savings account products by 5 to 7 basis points:
- NetBank Saver: cut by 7 basis points to 0.33% p.a. (0.05% base rate plus a 0.28% introductory rate for the first five months)
- Goal Saver: cut by 5 basis points to 0.3% p.a. (0.05% base rate plus 0.25% bonus rate if certain conditions are met)
- YouthSaver: cut by 5 basis points to 0.55% p.a. (0.05% base rate plus 0.50% bonus rate for balances up to $50,000)
- Pensioner Security: cut by 5 basis points to 0.2% p.a. (for balances $250,000 and over)
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