Westpac Bump Account takes out a Shonky Award for poor value and "creepiness"

The 12th Annual Choice Shonky Awards were held today, naming and shaming the biggest lemons from 2017. Among the “winners” was big bank Westpac, for it’s much-hyped Bump Account.

Citing a below average interest rate, a list of conditions to snag bonus interest and the “creepiness” of signing an unborn baby up to a bank, Choice awarded Westpac a Shonky “for this downright creepy, poor-value bank account.”

Back in January, Mozo crunched the numbers on the Bump Account, and found that with $20 weekly deposits over 16 years, the 1.50% interest rate originally advertised with the account could leave savers out of pocket by over $3,000 when compared to other leading accounts.

Taking into account the bonus rate of 2.30% available when you make a monthly deposit and keep the account balance higher at the end of the month than at the beginning, Choice calculated that with a $200 per month deposit, 16 years would leave a tiny saver with a balance of $46,654.

RELATED: Will your savings plan let meet your money goals? Check out our Savings Goal calculator to find out!

While that’s better than the conservative $19,054 originally advertised by Westpac, snagging a higher interest rate can mean a plumper balance in the long run - even if it doesn’t come with a $200 bonus.

For example, the highest ongoing bonus rate in Mozo’s database (excluding introductory offers) at the moment is 3.00%. With a starting balance of $0 and $200 deposits each month, one of the accounts offering this rate could bag savers a total balance of $49,209 over 16 years.

“This just goes to show how careful you need to be about not getting drawn in by promotions and bonuses, without considering the long term value of a financial products,” said Mozo Director Kirsty Lamont.

“When choosing a savings account to set up a nest egg for your child, it’s well worth your time to compare your options and make sure you’re getting the best deal. And interest rates are changing all the time, so you really should also be reviewing it every few years in case a better offer crops up.”

Check out some of the top savings rates today - last updated 23 April 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

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  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

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  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

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  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

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    Details

Also entered into the Shonkys Hall of Shame were products like Cuddly fabric softener, which Choice said was “worse than water and costs 3,000 times as much” and a Samsung washer and dryer with a $2,999 price tag, that takes 6.5 hours to dry a load of clothes.

Viagogo also joined the ranks of lemons, for its dodgy pricing practices that saw some Aussies pay as much as a 771% markup on tickets to see popular artists like Adele, Ed Sheeran and Justin Bieber.

^See information about the Mozo Experts Choice Savings Account Awards

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