Westpac slashes interest rates: What's out there for savers?

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on September 20, 2021
Westpac slashes interest rates: What's out there for savers?

Off the back of Westpac's recent interest rate cut, are there any other high interest savings accounts on the market?

Westpac recently slashed interest rates on its Westpac Life savings account by 50 basis points, down from 3.00% p.a. to 2.50% p.a.

Moving forward, under 30s can access the 2.50% p.a. interest rate on their Westpac savings account if they meet the same criteria as before.

This latest interest rate cut has prompted many savers - particularly young ones - to ask: What else is there for savers looking to make a return?

Westpac and BOQ targeting young savers

Westpac's latest interest rate drop means it's tied with Bank of Queensland (BOQ), a bank also offering a 2.50% p.a. interest rate for young savers.

BOQ's Fast Track Starter Account is a youth savings account for young people aged from 14 to 24 years old.

The bonus 2.45% p.a. interest rate applies to balances up to $10,000 when certain criteria is met.

This criteria includes making a minimum $200 deposit each month and five transactions from a linked Day2Day Plus Account.

There are some slight differences between Westpac and BOQ's high interest savings accounts.

Westpac's 2.50% p.a. interest rate applies to people aged 18 to 29 years old, whereas BOQ's offering is for people up to 24 years old.

Additionally, Westpac's interest rate applies to balances up to $30,000, while BOQ's 2.50% p.a. interest rate applies for up to $10,000.

Westpac's interest rate is made up of a 0.15% variable base rate, a 0.15% p.a. variable bonus for saving each month, and a 2.20% p.a. Spend&Save bonus for spending five times.

BOQ's interest rate is made up of a 0.5% base rate plus a 2.45% bonus interest variable rate for meeting set criteria.

What about over 30s looking to save?

If you're over 30, you're unable to grab the 2.50% p.a. interest rates mentioned above.

However, findings from Savings.com.au's research revealed the highest interest rate for savers over 30 is currently offered by Virgin Money with their Virgin Money Boost Saver account.

This account boasts a 1.50% p.a. interest rate for the first three months on balances up to $250,000 for over 25s, given certain criteria is met.

After the introductory period ends, the interest rate reverts to 1.2% p.a. if the same criteria is met.

This criteria includes depositing $2,000 each month and making at least five purchases with a linked 'Go' transaction account. 

Additionally, ING offers a 1.35% p.a. interest rate on its Savings Maximiser account for balances up to $100,000.

Customers that deposit at least $1,000 monthly and settle five purchases using a linked ING debit card can access the 1.30% p.a. additional variable rate.

Rabobank offers a similar 1.35% p.a. interest rate on its High Interest Savings Account for the first four months.

After this introductory period ends, it reverts back to a 0.25% p.a. standard interest rate.


Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.


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Savings Account (Amounts < $24k)

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    High Interest Savings Account (< $250k)

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      Online Saver ($1-$100k)

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        Reward Saver

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          BU Savings Account

            Rates based on a savings balance of $10,000. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions and for any applicable fees and charges. Rates correct as of May 29, 2022. View disclaimer.

            Image by Nattanan23 on Pixabay

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            Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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