Westpac has raised its savings account rate for 18-29 year olds by 50 basis points, now sporting a maximum rate of 2.50% pa
Westpac’s 50 basis point increase to 2.50% pa comes after cutting the rate to 2.00% pa in February; when launched about two years ago, its maximum rate was 3.00% per annum despite a cash rate of only 0.25% at the time.
Full rate of 2.50% per annum applies to balances up to $30,000. Beyond that, a maximum rate of 0.85% pa applies.
To achieve the bonus rate, Westpac customers must increase the balance each month and make five debit card purchases with the linked transaction account.
Some customers are also hit with a $5 monthly account maintenance fee if they don’t deposit $2,000 per month into the trading account.
The big bank has one of the highest rates for ‘young people’, but the Bank of Queensland (BOQ) has recently emerged with a savings account rate of 3.00% per annum
Westpac’s decision to raise the savings rate on its Westpac Life product comes after the Big Four banks failed to move savings account rates north in line with the Bank’s recent cash rate hike. RBA for June.
Instead, the major bank announced from June 9 that it would introduce a 12 to 23 month term deposit rate of 2.25% per annum
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 June 28, 2022. See disclaimer.
Image by Harrison Astbury