This was posted 3 years 8 months 11 days ago, and might be an out-dated deal.

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Westpac up to 3% Interest on Savings (up to $30,000) for 18-29 Year Olds

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Just read about this on a news.com.au article - 3% savings rate is amazing but sadly im too old. Better then I am getting on ING though so thats fairly amazing even if it is only the 1st $30k. I copied the T&Cs below seems legit

3% p.a. variable interest: earn up to 3% p.a. variable interest each month when you meet the criteria for both Westpac Life variable interest and Spend&Save Bonus variable interest. For bonus interest qualification, a month is the period from close of business on the last business day of the prior month to close of business on the last business day of the current month.

  1. Westpac Life variable interest: to earn the variable interest, which currently includes a 0.40% standard variable base rate plus a 0.60% p.a. variable bonus rate, you must make a deposit to your Westpac Life account, ensure the account balance is higher at the end than the beginning of the month and keep the account balance above $0. Interest is calculated on the daily balance of your Westpac Life account and paid on the last business day of the month.

  2. Spend&Save bonus variable interest: to earn the bonus variable interest, you must make 5 eligible purchases with the debit card linked to your Choice account and have these settled (not pending) within a calendar month. The following transactions are ineligible: ATM transactions, BPAY, EFTPOS cash out
    only transactions and purchases settled to a credit card account. Interest is calculated on the daily balance of your Westpac Life account(s) up to $30,000 and paid by the 20th day of the next month.
    Available to individuals aged 18-29 on new and existing sets of Westpac Life and Choice accounts from 1/07/2020 and may be varied or withdrawn at anytime in accordance with the deposit account terms and conditions. Westpac Choice and Westpac Life sole or joint accounts must be opened in the same customer name(s). Eligible on a maximum of 3 sets of Choice and Westpac Life sole and/or joint accounts.

Referral Links

Westpac Choice Account: random (99)

Referrer & Referee get $50 after referee makes 5 card purchases & deposits $500+. Maximum of 5 referrals allowed per customer: bonus is not paid to either parties if the referral code has been used more than 5 times.

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closed Comments

  • +140

    Westpac 3% Interest on Savings for 18-29yrs

    I don't recommend locking in your savings for that long.

    Interest rates are bound to get higher after the economy recovers.

      • +54

        Whooooosh!

      • +4

        It is a vacuum! A trap and a lolly from a stranger. Enyoy the sweet while you can.

    • +1

      You beat me to the joke :P

    • +5

      Why are people downvoting this. This gave me a morning giggle.

      • +37

        Why are people downvoting this.

        It's all the people who hate their dads.

        • +1

          Wow, so you cop it from your kids and (insert integer here)% of Ozbargain?

      • +6

        Some people see "jv", they downvote first, read the comment second.

        • +22

          It's one thing that Dan Andrews and I have in common.

      • +1

        I think some people automatically downvote jv for some reason. I personally enjoy some of his posts, and I bet there are plenty of closet jv fans.

      • i would, have you seen the interest rate recently its horrendous, wasn't so spectacular and bright last in the years since gfc but this covid just smashed australia's kneecap with a baseball bat

    • +2

      What a turnaround. Wasn't this comment sitting on negative 5 this morning?

      • +6

        A bit like the last federal election…

    • 30c chupa chups here i come

      Westpac: hmmm this kid is screwing us

  • +4

    This is an insane rate given the current cash rate. Highest rate was the BOQ Fast Track Starter @ 2.85% from memory.

    I think I'll be opening an account, how does the Westpac app fair?

    • +1

      I've only ever used this app so can't really compare but I don't mind it. Definitely like the quick balance showing on an account of your choice and you can quick transfer between your accounts so you don't have to really go into the app and fill out the boxes.

      • for what transactions does app or online banking need sms pin,

    • +6

      I briefly switched to Westpac a year and a bit ago. The Android app was their website inside an app wrapper. It was one of the reasons I very rapidly backpedalled and closed my account.

      • Same with BOQ. Who gives a s though, I use a much friendlier app for my day to day and take advantage of the %.

    • It says 'up to' 3%. To me this implies a ceiling of 3%. Why would you want an upper limit on an investment?

      Looks like 0.4% is the actual base rate.

      *Op- you might want to change the title.

    • +7

      I've used all the Big 4's apps within the past year. Westpac's is the worst.

      • +8

        True although from the banks I've tested so far HSBC Australia takes the cake for uselessness. I'm only using it for the 2% discount on payWave payments and $100 signup bonus.

        • +1

          Take a look at BOQ's web app….

    • +6

      It’s rubbish and their password is limited to like 6 characters or some BS, it’s probably pretty easy to brute force into people’s accounts.

      • 6 characters case-insensitive. Ridiculous for a bank.

    • +2

      Just signed up and installed. Feels over engineered if you're just after an app that just shows your balance & allows you to manage your money. I prefer the ANZ & ING apps.

      Ancient password limitations also mean you can't properly secure your account.

    • +3

      No app can be worse than BOQ…

  • +3

    If I already have a Westpac Life account do I need to contact Westpac to get the bonus?

    • Try but I bet it's new customers only

    • I just gave them a ring, and they said it would be automatic if you already have these existing accounts.

  • +2

    This is a very good savings account but the transaction account you have to use is quite poor vs for example ING: there is a monthly fee (although most will get a waiver), overdrawn fee of $15, $5 charge for using some overseas ATMs, 3% charge on non-Australian foreign currency transactions and 2.2% on Australian foreign currency transactions.

    So this account is great if you are just spending in Australian dollars but not good internationally.

    • +2

      oh you need both life and choice

      • +2

        you need to Choose Life

      • +1

        Yeah usually the case with this type of savings account is that you need to use the transaction account as well.

    • +2

      You can use it as your savings account and then just make 5 transactions splitting a $.75 thing at woolies. Keep using your ing as transaction that is my plan anyway.

      • Yeah that makes sense but just a complete hassle for me.

  • It applies to existing life account also, as long as you meet the criteria.

    • +16

      targeting specific groups for a bonus is not discrimination. If they were refusing to have accounts for older people that would be discrimination. All sorts of groups, organisation affiliations etc can give you access to bonus rates or fee discounts.

      • +1

        Let's test that idea… how about a 'white person' bonus?

        • +4

          there are specific exclusions for age and organisation etc when it is a direct benefit to those groups. It aint my rules.

    • +11

      Definitely for this getting declared illegal if all the seniors' discounts are

    • +9

      Under the age discrimination act, there are excemptions, namely:

      • the act provides a bona fide benefit to persons of a particular age

      An example given of what is considered acceptable is:

      • a hairdresser giving a discount to a person holding a Seniors Card or a similar card, because giving the discount is an act that provides a bona fide benefit to older persons.
    • They have some old lawyers who know the judges, nuff said!

    • +14

      Come on now, you gonna whinge that young people, who have been dispraportionately impacted by COVID shutdowns, who have huge HECS debts with barely any prospect of a decent job, are getting some bonus interest and you aren't? Get a grip. Look at the mental health stats for this age group. Think about someone other than yourself, don't pull this bullshit human rights crap. It isn't your right to get bonus interest. Embarrassing.

      • There are BS advertisers who say up to and there are the quiet achievers. Maquarie so far actually paid what they advertised, even if it is for a limited time. Getting is what takes the mental stress away!

  • +4

    Hey, don't you guys know the rule? Discrimination is ok if it gets the tick from the virtue-signalling crowd :P. Banks have form, like paying more super if you're female.

    Either way, being a big bank I'm sure there are downsides I'm guessing I'd rather avoid.

    • +6

      You are correct.

  • +6

    People should be educated on financial management and about bonds, term deposits, ETFs, etc.

    • +3

      Stop talking, too much common sense thanks.

  • Wow would be good if it wasn't for all their scandals

  • Westpac's current home loan rate is 2.79% so it's bizarre that you'd be better off having $30k sitting in savings than in your home loan. What's the catch?

    • +8

      You pay tax on interest, savings on your mortgage are essentially tax free (assuming it's not an investment property).

      • -1

        Yep, I'm wondering what the bank's logic is though as it's not like they make money off our tax.

        • +4

          big 4 bank strategies are to get them using their services, especially while young, the default behaviour of a large segment when it comes time to take out a home loan or other loan product is to talk to the bank they are already dealing with. So they are in effect buying future business with a PR offer that will cost them very little and get them lots of press, smart move.

        • Sounds like Westpac need some cash on the books - are they having issues with their lenders?

      • +1

        first $18K income is tax free.

        • +2

          To benefit properly the 3% savings rates you most likely have to pay in $24K a year though to get a waiver for the $5/month account fees. So at that level of earnings you would start getting taxed on the interest.

          • @lukethefish: Uhh no you just have accounts with multiple banks and transfer in and out $2000 per month

        • +2

          I doubt many people with mortgages are in the tax free threshold.

          • @RCMD11: My wife is taking time off out of the workforce to raise our kids, our mortgage rate is lower than this, so I'm considering opening an account in her name to take advantage. Others might be in the same boat.

        • hey since you are associated, how do i set up 2 step verification, it says active on the security but it doesn't ask for a code when signing in

    • +1

      You pay tax on your interest earned so you may still be better off having the money in a home loan offset even at a lower rate. Calc may change again if your house is an investment property and will be dependent on your marginal tax rate.

    • +1

      The comparison rate (rate + fees) would be higher than 2.79%, and you'll be paying marginal tax on the interest rate anyway.

  • Good rate, although I think BOQ takes the cake still.

    Your savings have to grow every month with Westpac to get the bonus interest, and the transaction account incurs a fee unless you meet a waiver.

    That said, this applies up to $30k,and for a wider age bracket.

  • +7

    There appears to be a $50 offer with a new Westpac Choice everyday account listed on the Westpac page linked.
    Apply online by 6th October 2020, deposit $500 and make 5 eligible purchases within 30 days.

    Fees and charges apply. Read the terms and conditions available at westpac.com.au before making a decision and consider whether the product is right for you. To be eligible for the $50 offer you must: open a new Westpac Choice account online between 01/07/2020 and 06/10/2020, or in branch if you’re under 30 years old; and deposit $500 and make 5 eligible card purchases within 30 days of account opening. Eligible card purchases are purchases made using your Westpac debit card linked to your Choice account and excludes ATM transactions and EFTPOS cash out only transactions. If eligible you will receive $50 into your Choice account within 45 days of opening. All account holders on the new Choice account must not hold or have held a Westpac transaction account, or received this offer at any time to be eligible. Offer is limited to one eligible account and is not available in conjunction with any other offer. ​

  • I'm not a financial expert/advisor in any way, just a stranger on a website. But personally I'd recommend 18-29y olds to have a good look at ETF funds (CommSec Pocket offers an easy way). On average you will get much higher returns than 3% and you have the time to mitigate any bad years. Last financial year many funds performed over 10% returns. ETFs follow an index or collection of shares and as such are relatively safe.

    • +10

      Shares are doing wild things at the moment, so there is an increased element of risk in that.

      • +2

        It will never be risk-free, and it depends on your goals. If saving for the long term, I'd argue that now is actually a good time to buy. ETFs are usually following an index (Dow Jones for example). That means if a few companies go bust, it won't severely affect your portfolio. But yeah, don't take my financial advice as I'm not a pro - I just hope that young people educate themselves in the multiple options they have other than a savings account. I wish I had known about ETFs when I was younger! If someone reads this and reads up on, say, Vanguard - I'm happy :)

        • +4

          I’m quite young and lucky enough to have a decent job which allows me to put away a fair amount in savings. I’ve been looking at ways to invest (with ETFs being the most likely candidate) but I’m struggling to pull the trigger and my savings are currently just sitting in my ING account. I’m fairly risk averse so have been second guessing myself about taking the plunge. I’m unsure which ETFs I should be looking at (ASX200 v ASX50 v small cap v US/International shares v industry specific etc etc etc) and then how to allocate my savings amongst those. I’m the type of person that needs to have a concrete plan before committing to something but I think that’s holding me back in this instance.

          • +2

            @Pulseidon:

            unsure which ETF

            The only type of ETF worth looking at is one where you own the fund as an investor which removes the incentive to levy fees.

            Most ETFs exist to removes fees from the investor and even tiny fees have a devastating effect on long term returns.

            • +9

              @Diji1: Would love to see ETF as a discussion topic in forum here, would help a lot of younger Ozbargainers with their investments / savings plans.

              • @sistermay: Likewise, I might post something once I clock off from work tonight or over the weekend.

          • +5

            @Pulseidon: VDHG is the default answer for ETFs.

          • +4

            @Pulseidon: I'd check out r/AusFinance, the general sentiment there is pretty close to yours as far as risk.
            VDHG (Vanguard Diversified High Growth) is a popular choice for younger investors because of the low fees + highly diversified, but still weighted towards long term.

    • +1

      I'm wondering which brokers are good in terms of fees/ service/ features/ investment options etc when it comes to ETF investment

      • +8

        You basically have 3 main options
        1) Commsec Pocket, Spaceship etc.
        These basically exist as a "your first investment" service - they are good if you don't have a lot of spare cash (<$3k) and generally have the lowest fees (for small amounts!). They restrict you to certain ETFs though.

        2) Commsec
        Fully fledged stockbroker, best research services and I believe live price feeds everywhere. Expensive brokerage costs though ($20+) per transaction. (Note you can just make an account to use their research tools, and then actually purchase through a different stockbroker). CHESS sponsored (if they go under, your stocks are safe). Possibily a bit better for indivdual stock investing because it has T+2 settlement (can buy stocks with money technically tied up) and supports NPP so transfers are instant.

        3) Selfwealth. Personal recommendation, somewhat basic UI but pretty functional. Cheap brokerage ($9.50), CHESS sponsored. However, doesn't have T+2 settlement, and transferring money in can take a day or two. If you are just buying ETFs to set and forget, this is the choice. Check the OzB page for a referral code for some free trades.

        • What about CMC? I’ve heard decent things but have no real idea. I’m not into picking individual stocks (so probably don’t need research that much) and would prefer to just to put some money into a few ETFs each month or so.

          • +1

            @Pulseidon: I'd tread with care, they also offer other much more risky products like CFDs.

            ETfs can be traded like normal shares (they are listed) so you can find a good broker that you trust.
            I like CommSec but they are not the cheapest.

          • +3

            @Pulseidon: Not super familiar but from a quick google, it appears they are fine. That said SelfWealth is still probably your best bet since they're cheaper than CMC, and are otherwise also perfect for your usecase.

        • +1

          Selfwealth for sure. Cheap, easy to use and no recurring fees.

        • +1

          Thanks for the info smmoove.

  • With savings interest rates being at record lows, customers are taking their saving and putting into the stock market for better returns, hence the rebounds we are seeing defying the true state of the economy. Westpac need these deposits to continue to lend.

  • -1

    wow..better than my primary residence interest rate even.

  • Has anyone managed to get their westpac transaction account $5 monthly fee waived?

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