Virgin Money makes it easier for Aussies to save with new feature

Virgin Money has introduced a new mobile app feature to help Australians reach their savings goal quicker.

The Lock Saver Feature on the Virgin Money app, allows customers to lock funds away in their savings accounts in a similar fashion to a term deposit. 

Unlike a term deposit though, your money is not locked away for a period of time, nor does it need a minimum balance. The feature offers the freedom to regularly add extra funds while it’s locked–typically something you can’t do with term deposits. To access the money again customers will need to give 32 days’ notice which starts when they select to unlock the account in the app.

“We know it’ll be extra appealing to millennials and Gen X who are not typically drawn to traditional term deposits, but instead want a simple, fast and flexible way to put money safely aside to save for something special,” says Virgin Money Australia’s chief executive officer, Greg Boyle.

The idea for the feature came after a Virgin Money study showed that 70% of Australian households saved towards a medium to long-term goal in the last 6 months, but less than one-third of them actually stayed within their budget or spending allowance–making them dip into their savings. 

Raise your hand if you are guilty of this? (I know I am).

Boyle says that many Virgin Money customers have savings goals and he wants to make reaching them easier.

“Saving for a big goal like a house can be a hard slog, so we wanted to design a feature that helps keep you on track, rewards you for your efforts and stops you from making impulse purchases that slow you down,” he said.

Currently, Virgin Money’s Boost Saver with Go Account (Lock Saver Feature) has a maximum rate of up to 1.35% p.a. for customers who meet the requirements.

If you’re looking for a new savings account, check out the crowned winners of the Mozo Experts Choice Saving Awards. Alternatively, you can compare savings accounts below.