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

author-avatar By 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.

Provider
Total
interest
rate p.a.
Intro
interest
rate p.a.
Intro
term
Base
interest
rate p.a.
 
Online Saver
1.55% 1.20% 4 months 0.35% Go to site
2.10% 2.10% 4 months 0.00% Go to site
2.20% 1.40% 4 months 0.80% More details
2.00% 1.45% 4 months 0.55% More details
2.00% 0.65% 4 months 1.35% More details

*Data accurate as at 04 August 2020. 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.

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.

Provider
Total interest
rate p.a.
Base interest
rate p.a.
Bonus interest
rate p.a.
 
1.00% 0.40% 0.60% More details
0.90% 0.05% 0.85% More details
0.85% 0.01% 0.84% More details
0.50% 0.10% 0.40% More details

*Data accurate as at 01 August 2020. Rates based on a savings balance of $10,000. Introductory bonus interest rates not included. Sorted by total interest rate, then by provider name (A-Z). Refer to providers' websites for bonus rate conditions.


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author-avatar
Harrison joined Savings in 2020. He is a journalist with more than four years of experience, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

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