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

Kelly Emmerton

05 Oct 2017

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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 - rates updated daily

  • Promoted

    AMP

    AMP

    Saver Account

    2.65% p.a. (for $0 to $500,000)

    1.05% p.a.(for $0 to $5,000,000)

    $0.00

    *Bonus rate for the first 6 months from account opening on the first $500,000 deposited. For new Saver customers only.

  • Promoted

    Macquarie

    Macquarie

    Savings Account

    2.65% p.a. (for $0 to $250,000)

    1.35% p.a.(for $0 to $25,000)

    $0.00

    *Bonus variable rate is available for the first four months.

  • Promoted

    MyState Bank

    MyState Bank

    Bonus Saver Account

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

    0.30% p.a.(for $0 and over)

    $0.00

    *Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.

  • Promoted

    Bank of Queensland

    Bank of Queensland

    Fast Track Saver Account

    2.00% p.a. (for $1 to $250,000)

    0.20% p.a.(for $1 and over)

    $0.00

    *Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account. (Requirement temporarily waived due to crisis).

  • Promoted

    IMB Bank

    IMB Bank

    Reward Saver Account

    1.75% p.a. (for $5,000 and over)

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

    $0.00

    *Minimum deposit of $50 and no withdrawals. Reverts to bonus rate of 0.90% after the first 4 months.

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.

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