Westpac to offer 3% savings rate to under-30s

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on July 08, 2020
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Westpac to offer 3% savings rate to under-30s

Photo by Finn Whelen on Unsplash

From today, Westpac is offering a 3.00% p.a. savings account rate for people aged under 30 with a maximum account balance of $30,000.

Westpac Life account holders under 30 will be able to access the higher interest rate if they increase their monthly balance and make five debit transactions with a linked Westpac spending account.

If customers are unable to grow their monthly balance, a base rate of 2.40% p.a. will apply, which is still ahead of many competitors' rates.

The special interest rate will apply to balances up to $30,000.

The linked transaction account attracts a $5 monthly fee if customers do not deposit at least $2,000 a month (e.g. their pay), but that fee is waived if they are under 21 or a full-time tertiary student, a pensioner or Commonwealth health care card holder.

Currently, the Westpac Life interest rate sits at 1.00% - a 0.40% standard variable rate, and a 0.60% bonus rate if customers grow their account balance every month.

Compared to other banks, the 3.00% rate would make Westpac notably higher than even introductory rates, as seen in the table below.

Lender

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Online Saver (Amounts < $499999)

    02000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    PremiumSaver (Amounts < $250k)

      3000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Serious Saver (<$1m)

        0100$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        mySaver < $50k

          4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          WebSavings Account (New Customer) ($2,000+)

            Rates based on a savings balance of $10,000. Sorted by total interest rate. Refer to providers' websites for bonus rate conditions. Note that the base rate will apply once the introductory term has passed. Rates correct as of June 28, 2022. View disclaimer.

            Westpac's head of savings and investments Kathryn Carpenter said COVID-19 has encouraged many young Australians to reassess their finances.

            “Building savings can already be challenging for young adults who are only just starting their
            financial journey, particularly in an environment like this where many are also now navigating
            changes to their income or employment," she said.

            "It’s clear this has been a turning point for many younger Australians, who are thinking more about owning a space of their own in the future and prioritising saving for a deposit."

            Research commissioned by Westpac also found COVID-19 has made two thirds of young Australians motivated to save for their first home.

            The research also found nearly half are planning to save more than they did before the pandemic hit, and 85% have chosen to cut back spending or hold off on large purchases.

            The survey attracted a total of 2,376 responses from 23 March to 4 June, and an additional survey attracted 1,176 responses from 18 May to 22 May.

            See how Westpac stacks up to the other big four banks in the table below - note Westpac's rate below is the standard Westpac Life product.

            Lender

            000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            Life

              01010$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              Progress Saver

                010$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                Reward Saver

                  5000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

                  NetBank Saver

                    Rates based on a savings balance of $10,000. Introductory bonus interest rate products not included. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions. Rates correct as of June 28, 2022. View disclaimer.


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                    author-avatar
                    Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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