Westpac increases under-30s savings account rate to 2.50% p.a.
Westpac's 50 basis point increase to 2.50% p.a. comes after it cut the rate to 2.00% p.a. back in February; on launch around two years ago its maximum rate was 3.00% p.a. despite a cash rate of only 0.25% at the time.
The 2.50% p.a. total rate applies on balances up to $30,000. After that, a maximum 0.85% p.a. rate applies.
To attain the bonus rate, Westpac customers must grow the balance every month, and make five settled debit card purchases with the linked transaction account.
Some customers are also hit with a $5 monthly account keeping fee if they do not deposit $2,000 a month into the transaction account.
The major bank has one of the highest rates for 'youths', however Bank of Queensland (BOQ) has recently emerged with a savings account rate of 3.00% p.a.
Westpac's decision to increase the savings rate on its Westpac Life product comes after the big-four bank did not move savings account rates north in line with the recent RBA cash rate increase for June.
Instead, the major bank announced from 9 June it will introduce a 12 to 23 month term deposit rate of 2.25% p.a.
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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 |
| 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 |
