Key points:
- 2% up to $10k. Can open up to 3 accounts for up to $30k, all earning 2% interest.
- Only for 18-29 year olds.
- Must credit "your whole salary" into this account. How they determine this is unknown. Nothing about increasing balance, so presumably you can immediately transfer what you need to your spending accounts (like Hiver's 5% cashback or HSBC 2%).
Once you turn 30, the account is converted to their regular "savings" account. This is completely worthless (0.01%).
Most of their other products for savers are also uncompetitive, even in this low interest environment.
My guess is that they are trying to draw in younger people with their higher interest rate products (1.3% for their kids savings account, 2% for this) and hoping they stick around and use their other uncompetitive products to make it back.
E.g.
- Parents trying to teach their kids about finance might see the interest rates for youngsters.
- Set up accounts for them.
- Kids eventually take over control of their accounts into young adulthood but aren't that knowledgeable about what competitive interest rates look like.
- Kids eventually turn 30 and decide to continue with Police Bank for all financial services because that's all they've known.
- Police Bank get customers for life.
- $$$.
Either way, the 2% interest for relatively easy conditions is great.
Westpac has the same deal without the "your whole salary" concept
https://www.westpac.com.au/personal-banking/bank-accounts/sa…
edit: westpac offers 2% up to $30,000