The Police Bank has launched a 2% savings account for young Australians aged 18-29, provided certain criteria are met.
Nicknamed ‘U30 Super Charge’ savings account offers 2.00% interest per annum on balances up to $10,000.
To earn the interest rate of 2% per annum, Police Bank members simply need to have their salary paid directly to the Police Bank each pay cycle.
At the time of this writing, the definition of “salary” is unclear.
The savings account can be linked to a total of two other sub-accounts, meaning Police Bank members can earn interest up to a combined balance of $30,000.
The savings account has no minimum monthly transactions, no account maintenance fees or ATM/Eftpos fees, and a daily transaction account with a Visa debit card.
Transactions are also supported by the new payment platform, which means transfers can be made almost instantly.
The Police Bank notes that interest of 2% per annum paid is calculated daily and paid monthly for balances up to $10,000 in transactions and sub-accounts.
It is also important to note that if savers have more than $10,000 in an account or sub-account linked to the U30 Super Charge product, they will not receive any interest on amounts over the threshold.
Police Bank CEO Greg McKenna said the product offers young members a great opportunity to get ahead and save faster for things like travel, a new car or home deposits, at a time in their life when they are still studying or just starting out in their careers and need a boost.
“When I talk to members, of all ages, they ask questions about their financial well-being and about building for the future,” McKenna said.
“This product is a tangible offering in that regard and underscores that Police Bank is here to support our young members with targeted financial products to help them with their savings ambitions.”
To open a U30 Super Charge account, you must be:
- A citizen or permanent resident of Australia
- Between 18 and 29 years old
- Accept to become a member of Police Bank or are already a member of Police Bank
- Agree to have your salary deposited into the Police Bank each pay cycle.
Other popular youth savings accounts include:
Need a place to store cash and earn interest? The table below shows savings accounts with some of the highest interest rates on the market.
Rates based on a savings balance of $10,000. Sorted by total interest rates. Check the providers’ websites for terms of bonus rates and applicable fees and charges. Rates correct as of May 5, 2022. See disclaimer.
Image by Mike Stevens via Unsplash