Westpac offers three percent interest per year for customers under 30 with savings of up to $ 30,000
Millennial Bonus: How To Get TRIPLE Interest Rates On Your Savings But Only If You Are Under 30
- Westpac offers three percent savings rates for customers ages 18 to 30
- The more generous Westpac Life rate applies to those with savings of up to $ 30,000
- The same bank pays only one percent interest per year for customers over 30
- Finder said Westpac was best for young people, but not older and wealthier savers
Westpac offers more generous interest rates for savers, provided they are under 30 years old.
Australians between the ages of 18 and 29 can get an interest rate of three percent per year with the new Westpac Life product – a rate three times that of other older customers.
Alison Banney, the banking and investment editor at financial comparison website Finder, said Westpac Life was great for people under 30 – to some degree.
“If you are under 30 and have a balance of less than $ 30,000, you will struggle to find a better running variable rate than the three percent per year that Westpac Life offers,” she told Daily Mail Australia.
“A maximum bonus percentage of three percent is fantastic in the current low-rate environment, even though there are a few conditions you have to meet to get it.”
Westpac offers more generous interest rates for savers, provided they are under 30 years old. Australians between the ages of 18 and 29 can get an interest rate of three percent per year with the new Westpac Life product – a rate three times that of other older customers. Depicted is a stock image
A $ 20,000 youngster earning three percent a year would earn $ 608 in interest, even if they only deposit $ 1 a month, Finder calculated.
New customers must open a linked Westpac Choice account to receive the three percent interest rate on deposits up to $ 30,000, and it costs $ 5 in monthly account holding fees.
These fees will be waived if a customer is a student, under the age of 21, or meets the minimum down payment requirement of $ 2,000 per month.
A less generous 2.4 percent rate applies to youthful customers who don’t increase their savings.
Ms. Banney said that Australians over 30 with more than $ 30,000 in savings could get better savings rates elsewhere.
The standard Westpac Life accounts offer only one percent interest per year, meaning someone with $ 20,000 in the bank would deposit only $ 201 per year in interest with monthly deposits of $ 1.
Alison Banney, the banking and investment editor of the financial comparison website Finder, said Westpac Life was great for those under 30 with savings of up to $ 30,000. Older customers with more money were advised to look elsewhere
By comparison, HSBC offers 2.1 percent per year compared to 1.85 percent at the Bank of Queensland and 1.8 percent for both ING and ME.
Westpac’s special offer for those under 30
A three percent per year rate for Westpac Life savings accounts applies to those under 30 with up to $ 30,000 in the bank
That’s the triple rate for older customers
There is a $ 5 per month account fee that is waived for students, under-21s, and customers who deposit at least $ 2,000 per month
Finder, a financial comparison website, said it was the best product for people ages 18 to 29
Older customers with more than $ 30,000 receive only one percent interest per year at Westpac Life
HSBC offers 2.1 percent per year, while Bank of Queensland pays 1.85 percent interest
The Reserve Bank of Australia cut interest rates to a record low of 0.25 percent in March, the same month the World Health Organization declared a COVID-19 pandemic.
That has brought little reward to bank customers.
Nevertheless, Kathryn Carpenter, head of Westpac’s Savings and Investments, said that the pandemic of COVID-19 had motivated young people to save for a home deposit.
Obviously, this was a turning point for many younger Australians, who are thinking more about owning their own space in the future and prioritizing saving for a down payment, she said.
The coronavirus pandemic has hit the housing market, and the value of new home loans plummeted in May by a record 11.6 percent – the worst monthly decline in the Australian Bureau of Statistics records dating back to 2002.
Homeowners’ loans declined by 10.2 percent and investor loans plummeted by 15.6 percent.
First home buyers living in their own home accounted for 37.4 percent of home loan obligations in April, a decade high, but declined to 36.7 percent in May.
CommSec chief economist Craig James said that record low interest rates would cause the housing market to rise little if potential borrowers were concerned about job losses.
“Interest rates remain super low, but the main problem remains the labor market,” he said.
“If people get more confident in their jobs, they will obviously build or buy houses more often.”