From 12 May, Westpac customers aged between 18-29 will be able to earn up to 5.00% p.a with the 'Spend and Save' bonus savings offer.

This is a 30 basis point jump, and comes in response to the RBA's decision earlier this week to increase the cash rate by 25 basis points.

Westpac passed on the heightened rates to its other savings accounts, which moved up by 25 basis points.

The likes of ING and BOQ have already breached the 5% mark for high earning savings accounts, but Westpac will be the first of the big four to do so.

The highest bonus rate at CBA is currently 4.15% p.a, while the highest rate on bonus accounts offered by both NAB and ANZ is 4.25% p.a.

@savings.com.au Westpac is the first big-four bank to offer a savings account rate of 5% p.a. Westpac’s Spend&Save account for 18-29 year olds will increase by 0.30% offering eligible customers a total variable rate of 5% from 12 May. #fintok #fintokaustralia #ausfinance #savingscomau #savingsaccount #westpac #moneytok #money #banking #bankingnews ♬ original sound - Savings.com.au

How 'Spend and save' works

The base rate for a Life savings account with Westpac is 1.60% p.a.

Each month the amount in the account grows, an additional bonus rate of 2.65% p.a. applies.

With the spend and save offer, only available to customers aged between 18 and 29, if the debit card on the linked transaction account is used more than five times in a month, there is also an extra interest payment.

Prior to today's announcement, this was 0.45% p.a, pushing the overall rate if all criteria are fulfilled to 4.70%.

Today's increase is likely to apply to the spend and save bonus, which would now be worth 0.75% p.a.

The maximum balance this applies to is $30,000.

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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.

Rates
Features
Conditions
Other
Provider
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
More details
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Saver Account (<$250k)

    More details
    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
    • No withdrawal notice periods or interest rate penalties
    • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace

    Savings Account (Amounts < $250k)

    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
    • No withdrawal notice periods or interest rate penalties
    • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
    More details
    000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    *Rate varies on savings amount
    • Deposit $500 per month to get bonus interest
    • 5.50% p.a. available on total savings up to $100k.
    • 5.00% p.a. applies to savings between $100k-250K.
    • Tiered bonus rates apply. (TMDs at ubank.com.au)
    *Rate varies on savings amount

    Save Account (<$100,000)

    • Deposit $500 per month to get bonus interest
    • 5.50% p.a. available on total savings up to $100k.
    • 5.00% p.a. applies to savings between $100k-250K.
    • Tiered bonus rates apply. (TMDs at ubank.com.au)
    More details
    Important Information and Comparison Rate Warning

    All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of July 27, 2024. View disclaimer.