Kids savings accounts: The Westpac Bump Savings Account is finally here
Thousands of proud parents will be happy to hear that the Westpac kids savings account dubbed “Bump” has finally arrived - the highly anticipated initiative that comes with a $200 incentive.
The big launch coincided with Westpac’s extended 200th birthday celebrations on Saturday, meaning all eligible parents, including those who submitted an expression of interest, can now open a Bump Account for their offspring born this year.
Westpac has been promoting its initiative since January in a bid to educate Aussie mums and dads on the importance of helping their kids save early in life. For instance, the voiceover in its ad doing the rounds on TV reminds viewers that life isn’t all sunshine and rainbows, adding:
“People worry. Your parents worry. Will they be able to give you the best education? Will you be able to buy your own home? Only time will tell.”
Here’s what the Bump Account offers babies born in 2017:
- Free* $200 deposit from Westpac in the first three days of the account opening
- Standard variable base rate of 1.50% (standard variable bonus** rate of 0.80%)
- Zero account keeping fees
*The money will be voided if you or your child withdraws funds from the savings account before he or she turns 16 years old.
**To qualify for the bonus rate, you must make a deposit, ensure the account balance is higher after 16 years than it was at the start and keep it over $0 at all times.
While the Westpac Bump Account is the only kids savings account in the market that comes with a cash treat, Mozo’s database shows that some providers offer higher interest rates which can generate more savings in the long run.
Westpac’s Bump Account vs the top 6 kids savings accounts:
*These calculations are based on $20 weekly deposits over 16 years, with no withdraws. And for scenario’s sake, the interest rates are not increased or decreased over the period.
As the results show, Westpac’s cash freebie isn’t the most competitive deal in the market. With BCU offering a 3.25% interest rate, your child’s money will grow $1900 more than if you went with its big four bank competitor. To compare kids bank accounts, head to Mozo’s hub.