Westpac offers young Aussie savers a new market-leading interest rate

Olivia Gee

09 Jul 2020

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Westpac today announced a new interest rate for young savers that’s leading the competition by strides.

From July 8, the new Westpac Life account will offer up to 3.00% in bonus interest for customers aged 18-29. 

It’s 1.15% higher than the nearest competition in ongoing savings, and is well beyond the sluggish 0.70% average savings account rate, according to the Mozo database. 

It’s also a nose ahead of the highest youth saver option, Bank of Queensland’s Fast Track Starter Account, which offers 2.85% interest on up to $10,000 for people under 24. 

There are a few conditions you’ll need to meet to access this top rate from Westpac. The 3.00% can only be earned on amounts up to $30,000, five transactions via a linked Westpac Choice account must be made each month, and the balance must increase by the end of the month. 

However, savers who can’t meet this last criteria will still get a decent 2.40% interest rate.

Westpac has launched this new offering to attract young Australians trying to save a deposit to buy a home. 

Recent research from the major bank shows two-thirds of young Aussies are more motivated to save for their first home in light of the economic impacts of Covid-19. This is despite the report revealing younger people are three times more likely to have lost their jobs as a result of the pandemic compared to older generations.

Incidentally, Mozo’s data indicates this is the first time since 2011 that an ongoing savings rate (on more than $10,000) has been greater than the same bank’s lowest non-intro variable home loan rate (in this case the Westpac Flexi First Option Home Loan).

Promoted

Westpac Life
  • 3.00% p.a. interest rate (when criteria is met)

  • Available on up to $30,000

  • Dedicated savings buckets via Savings Goal feature

Beyond the market-leading interest rate of 3.00% p.a. for customers aged 18-29, this account offers numerous features for young, goal-oriented savers. You’ll be able to nab the rate on up to $30,000 if you meet the criteria – make five transactions via a linked Westpac Choice account and increase your balance each month – and use handy mobile wallets including Apple Pay, Google Pay and Samsung Pay. Need a hand prioritising your savings? The Savings Goal Westpac Life feature lets you create savings buckets, so you can make automatic transfers to dedicated savings aspirations, like a home deposit or car fund.

Other top savings accounts

Promoted

Up Saver Account
  • 1.85% p.a. interest rate (when criteria is met)

  • Optional round-up feature

  • No account fees

Keen savers who love the convenience of mobile banking should consider the Up Saver Account. This tech-savvy digital bank will provide a solid 1.85% p.a. interest return on your savings bundle for the first 4 months if it's under $50,000. All you need to do is make five successful card purchases each month through a linked Up Bank Everyday Account to keep earning the bonus interest. To help you save quicker, there's also the option to round up any transaction you make to the nearest whole dollar and automatically transfer the extra cents to your savings. And best of all, there are no account keeping fees to hamper your savings goals.

Promoted

Bank of Queensland Fast Track Saver Account
  • 2.85% p.a. interest rate (when conditions are met)

  • 2020 Mozo Experts Choice Award winner*

  • Unlimited transactions and deposits

The BOQ Fast Track Saver Account took out the 2020 Mozo Experts Choice Award for best Student Savings, so it's clearly another hot competitor for young Aussie savers. Customers aged 14-24 can earn the 2.85% p.a. interest rate by depositing $200 or more to a linked Day2Day Plus account and making 5 eligible transactions throughout the month. However, in response to the Covid-induced economic conditions, the deposit requirements have been paused until August 31, 2020. If you are able to add to your savings, unlimited deposits can be made into the account, which also has no maintenance fees.

*The Mozo Experts Choice Awards highlights products our experts believe offer great value to Australians. The award for Student Savings in the 2020 Mozo Experts Choice Savings Account Awards assessed accounts specially for students aged 24 years and younger.

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