• expired

Up to 2.5% p.a. High Interest Savings Account (Ages 18-29 Only, up to $30,000) @ Westpac

190

I was just chatting to my younger brother and he let me know he was getting 2.5% pa on his savings. It seemed unbelievable but it's true! The 'catch' is that you must be 18-29 and it's only for balances up to $30k (plus you have to do some other bits and pieces, ie, grow your savings account balance each month and make 5+ transactions on the card).

But at the end of the day, 2.5% is a cracking savings rate. For comparison, if you had $20k in savings, compared to 1.5%, you'll make an extra $200 a year, which isn't too shabby.

On the other hand, Westpac funds polluting fossil fuels, so that's another thing to take into account.

EDIT: monthly fee of $5 on the "choice" bank account unless you meet certain criteria (explained in the link).


Mod: Previous deal. Duplicate exception: “The original deal is active but older than 6 months.” Guidelines

Mod2: As of 2021-09-18, the interest rate has dropped from 3% to 2.5%.

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  • +2

    N.B. $5/mo account keeping fee
    This fee is waived for:
    Customers that deposit at least $2,000 each month (other fees apply)
    Customer under the age of 21 or a full-time tertiary students

    • Do they start auto charging after ur 21st birthday?

  • +3

    There's also a 50 dollar bonus if you sign up and deposit 500 in a month. At least there was when I signed up on the start of April

  • +3

    This is age discrimination

    • +1

      Why?

        • Yeah nah. Providing a benefit to a subset of people based on their age is entirely legal.

          Good luck next time, tho.

            • +12

              @Almost Banned:

              The ADA also says that it is not against the law to provide a genuine benefit to people of a particular age group or to do something that helps meet an identified need for people of a certain age group.

              For example, ‘positive discrimination’ may include discounts and concessions provided to older Australians using a Seniors Card and special accommodation assistance provided to homeless teenagers.

              Well done.

            • -2

              @Almost Banned: I know there are plenty of asshats on this site but can someone explain to me why I would get two down votes for a link to the HRC's site on Age Discrimination?

              • @Almost Banned: For starters, they've probably negged you for not reading the website properly. And the second round was because you're now whining about it when you simply have not read it properly.

                • @KangaDrew: Forgive me for providing official information on the subject of the thread.
                  Like I said, this site is filled with asshats.

          • @jjcf: prejudice or discrimination on the grounds of a person's age.

            Definition from oxford. Seems to fit. It is discrimination.

            • @quog: Yes, the dictionary definition overrules what the actual law says.

              Congrats on the internet law degree, champ.

  • +5

    It seemed unbelievable but it's true!

    What an age to be alive, where 3% interest is unheard of - for all the wrong reasons.

    • -2

      Low interest. Less than CPI = losing money by depositing into these accounts

      Multiple strict hurdles to qualify for fractions of a percentage "bonus" interest, including spending criteria. Spending when you open a savings account

      Take a look at some ETFs and index funds, people!

      • +1

        Yes, because taking on equity market risk is the exact same thing as a savings account.

        Fascinated to find out what you think CPI is though.

        • I look to CPI as a common measure of a country's rate of inflation on consumer goods/services.

          I think of risk on savings deposits as negligible (nil for <$250,000).

          I think of risk on index funds and ETFs as low.

          Most people need to make decisions about where to deposit savings, and how to structure their assets.

          Except for the infrequent need for a deposit and tax/fee payments on property purchases, I need to keep large sum deposits somewhere. My first use is in an offset account against my home loan for my principal place of residence. My second use is a conservative cash deposit in savings as an emergency fund. My third use is in ETFs that are diversified and balanced, which I intend to maintain long-term and consider the yield to be much greater than a cash deposit at relatively low risk.

          • @muwu: but as JJCF said, what do you think inflation is, and how are you loosing money at 3%

            • @punkman: How about…

              Not "losing money"

              But

              Losing purchasing power?

              • @muwu: So 3% - 1.1% is a 1.9% gain generally speaking
                https://www.rba.gov.au/

                Even your relatively safer ETF's come with risk, the next few years given the RBA and fiscal stimulus taps will slowley be turned off.

                1.9% is great for those who are conservative and not ready to take risk in the stock market.

                • @punkman: For this savings account based on young age eligibility, I agree in thinking that 3% interest should be greater than CPI.

                  That might depend on your marginal tax rate. Someone on the top 47% rate (presuming one has PHI in this case) will realise 1.59% post-tax effective interest, and someone on a closer to median income with a 34.5% rate will realise 1.965% post-tax effective interest. Those numbers should be getting closer to CPI for many financial years.

                  And then everyone else outside this niche financial product is likely realising interest somewhere between 0.4% - 1.2% (before tax), which will definitely be below CPI.

                  I consider the risk index funds and ETFs come with as low (as above). Compared to many financial products that buy-in to stocks, they are conservative. My funds in these accounts are long-term, at least 10-15 years if not several decades, and I don't sink any time or energy into the short or medium term prospecting that any commentator or expert is to attempt to predict the market.

  • +2

    The banks interest rates are a joke… if you want to live on the side of caution I'd say look at some investment options to maximize your return ;)

    • +2

      3% is better than putting it in an offset account, and at least its better than inflation. Very good for liquid asset holding.

      • +1

        Not if your home loan is more than 3%

        • Well, I guess it’s time to refinance!

      • +2

        It’s probably not, given you pay your marginal rate on interest and zero on an offset. At best it’s borderline and you have to jump through a bunch of hoops.

      • +3

        Not when you pay tax on the interest earned.
        Remember offset account is tax free savings, depending on you mortgage rate and taxable income you'll likely be better in offset still.

  • -1

    oh no, westpac funds fossil fuels!

    the horror, the horror.

    • +4

      I sense sarcasm, but then I'm conflicted with your neg 🤔

  • +1

    A free $75 a month on 30k, not bad if you want to keep emergency savings rather than tie your money up in the share market. But I guess only a small percentage of under 30's would have 30k in cash laying around.

    • or a large percentage who has bank of mum and dad and can access some funds

  • If you earn a fair few pretty pennies dont forget the tax on the interest later so it kinda evens out a bit

  • +4

    3% to the moon

  • if you are 14-24 you can also get the same at BOQ for 10000

  • +5

    perfect for saving a deposit on your deposit for a house

  • Shoulda dropped it on Doge a few weeks back.

    • Or even Safemoon for that matter

  • What can you do if you are over 29😤

  • Confirmed that beem it no longer works?

    • +1

      Worked for me last month. I guess we'll find out in a couple of days.

      • pLZ REPLY BACK THEN OK :d

        • +1

          Can confirm still working. Received my bonus interest for this month by only using only beem it.

  • +1

    This was sadly slashed by 0.5% to 2.5% on September 13th

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