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Westpac Life 3.25% p.a. Interest on Balance up to $30,000 for 18-29 Years Old (Growing Balance & Spend Requirements) @ Westpac


From August 18, Westpac Life Spend & Save will be increased from 2.75% to 3.25%.

Earn up to 3.25% p.a. on your savings

How your interest adds up Percentage
Standard + Bonus interest on your Life account savings 1.85% p.a.
Spend&Save bonus interest each month debit card is used 5+ times 1.40% p.a.
Total interest including bonuses 3.25% p.a.

All rates are variable and subject to change. The Spend&Save bonus applies to eligible card purchases only and to balances held in Life accounts up to $30,000. The 1.40% bonus does not apply to savings above that balance.

Monthly fees & rates

Westpac Life savings account: $0

Westpac Choice bank account: $5 (criteria for fee waiver below)

This fee is waived for:

  • Customers that deposit at least $2,000 each month
  • Customer under the age of 30 or full-time tertiary students
  • Australian Pensioner Concession or Health Care Card holders
  • New to Australia or expatriate customers (for the first 12 months).

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  • -2

    Probably not the best rate once you factor in the fact that all the interest isn’t paid on the first of the month.

    • +2

      Really? Will it actually make that much of a difference? It is currently the highest rate as well, no?
      I saw Macquaries 3.1 and was about to swap, but then I saw this so I might just stay. What do you think?

        • +8

          You get paid every ~30 days. This doesn't apply.

        • +4

          But the "missed" interest on, say $10 that you earned, is probably in the cents. I'm not sure that's worth fussing over. Also if it is still

        • +1

          Could you explain what the downsides of being paid in the middle of the month? I don't understand from the wikipedia.

              • +5

                @basuracan: Lets calculate the absolute max that you may lose with some slight simplifications

                $30,000 Balance * 1.40% = $35 per month in Spend and Save bonus interest

                Assuming that it takes two weeks to arrive you lose out on ($35 * 3.25%) * (2/52) = $0.04375

                So you lose roughly 4 cents a month…

                This works out to 53 cents a year out of $975 in interest, or effectively losing 0.054%

    • I am a bit confused but doesn't it actually work out better than others. With my Westpac I get my base interest paid at the end of the month and the spend & save interest paid on the 15th, whereas ING pay me both base and bonus on the last day of the month. So wouldn't the interest paid on the 15th actually be compounding towards the next month for an extra two weeks? Not sure if I've got it wrong so please correct me if so

      • +1

        The spend and save is for the last month not the current month, so it’s delayed by 15 days extra.

        • +4

          Yep you're right, just checked. The spend & save bonus is sticking at 1.4% p.a, and with a balance of $30k, you'd get $35 for your mid month bonus. Interest foregone on the two weeks of $35 compared to ING's 3.1% would still make Westpac still better off

      • +1

        it is currently 0.15 better than the other best rates right now. Wouldnt that offset the 15 days "missed" interest? Which I believe would be in the cents anyway

        • +2

          Yes, but at what point would it not be worth it :) I just hate Westpac’s way of dealing with this crap.

          • @NoGiveJustTake: If Westpac was also 3%, maybe it WOULD be worth it to switch, but it remains the highest so it offsets anything I think. Also what do you mean by "I just hate Westpac’s way of dealing with this crap."? What is the crap and how id Westpac dealing with it?

            • -2

              @basuracan: Wow lower rate pays lower?? (3% vs 3.1%) I don’t think you know what I’m saying here.

              You don’t know crap.

              • @NoGiveJustTake: I meant 3.1% I used 3% as an exaggeration. I have no idea for why the aggression. What I meant was yes, I would switch if both were 3.1%, and since Macquarie pays monthly, there are no "lost" gains. Ohhh now I see what you are talking about lol.

                Well there is nothing new here. Very unlikely they will just increase it to "clearly" be higher than Macquaries 3.1

    • Pretty sure base interest (think 1%) is paid at first of the month, and bonus interest if you meet the criteria (i.e. 2.25%) is paid in the middle of the month.

      • It’s in the middle of the next month.

  • +1

    ING 3.1 internet rate

    • +5

      From 9 August, yes. And unlike Westpac, they don't discriminate based on age.

  • Thanks for posting this. I was wondering when it would finally go back to 3, and it actually exceeded it to 3.25 which is very nice

  • Too many hoops anyway

    • -2

      Disagree. Make 5 transactions is easy per month is easy enough (link subscriptions services to account). If you need to deposit $2000 per month for fee waiver send your income there.

      • I find it incredibly easy to make the transactions. Each month I try to buy something using afterpay and manually process transactions of $0.01, 5 times

        Alternatively, go to woolies/coles and buy anythung and just split the transaction into $0.01 lots to make your 5 transaction

        • Lol yeah seems liek a great tip I will use this in the future. But I am confused - are the people who are doing this not actually spending anything? I buy stuff with the card more than 5 times a month ANYWAY so I don't need to worry about this.

          • @basuracan: I have both an ING and Westpac account but I don't use them for spending. I use my ANZ credit card as I earn Qantas points on it. But I didn't have that then I would easily do the 5 transactions each month.

            I also do the 5 transactions on afterpay for my sister who lives abroad, so she can still take advantage of the free international transactions

            • @nicholasv: Sorry, which one has free international transactions? Even though the transaction is free, is the exchange rate good though?

              • @basuracan: ING does (or used to at least). They use VISAs exchange rates which can be found online somewhere. Not amazing, but not terrible

          • @basuracan: I use Hiver and HSBC for spending due to their cashback promos. Westpac counts beemit transfers towards the 5 unlike ING.

        • Every month on the 1st I use beam back and forth to transfer between two of my accounts that require 5 transactions.

    • Takes an extra 2 mins at checkout to do it all at once. Just split payment twice on 2 trips over a month. The $2k deposit is easily done passively from auto transaction or having your salary paid into it.

    • +12

      Not ageism, they're just encouraging a younger demographic to save, and generally those aged between 18-29 don't have a great deal of savings. It's no different to how seniors get cheaper public transport

      • i guess in 25 years when i get my seniors discount card i wont complain

      • It is ageism. The people that get cheaper public transport do so because they are disadvantaged or have a reduced income or have contributed to society.

        • +1

          18-29 year olds get the bonus interest rate because housing prices are cooked. Ageism is discrimination due to age, and people outside the age bracket aren't being discriminated against. It is just that 18-29 YOs get a bonus, not that older people get less

          • -1

            @nicholasv: It is ageism because the only thing that qualifies someone for this service is their age.

            It doesn’t take into consideration previously spending habits or net worth so the reasons you are making don’t make sense.

            The reality is there is some internal metric that they have that they need to meet but instead of providing a service that it tailored to the group they are wishing to target and marketing it toward them they have chosen to exclude potential customers from their service on the basis of age.

            • +1

              @TightLikeThisx: Wrong but it's OK to be salty that you don't qualify for this offer. I'm going to enjoy the extra interest that I am entitled

              • @nicholasv: Enjoy your interest. Not salty. It’s just BS and needs to be called out.

      • It's not really 'encouraging us to save' as much as buying our business for a lifetime. The only reason they are doing this is so that young people switch banks to Westpac and then stay with them once their savings get bigger.

        They can afford to give the higher interest rates because young people don't have much money anyway.

        This is also why there is the 5 transactions thing, as it means it's impractical if you don't just switch to Westpac as your primary bank.

  • Don’t need to do anything if you’re already on this plan as a student I assume?

    • +3

      If your a student like me you just need to use your debit card 5 times a month to get the bonus interest

  • Not negging but worth considering if this is neg worthy or not.

    • Cap of $30K
    • For Youths
    • Increase of interest rate 0.5% p.a. (from 2.75% to 3.25%)

    This would really equate to gain of $150 p.a. or $12.5 per month (around $12.53 if accumulative).

    Seems more of 'trying to be in good book' from westpac than actually thinking about customer.

    • +1

      It's buying young customers in the hope that they stay with Westpac for life. Nothing to do with being in the good book.

      That doesn't mean it's bad, it's just a business decision like any.

  • If there's $35k in an saver, would it be 3.25% on 30K and 1.85% for the remaining $5k?

    • +1

      Correct. At that stage just add 1c to your savings and move all incoming funds to another account.

  • -2

    up to $30k kills it for me.

  • -1

    Isn’t it much better to put your savings into the redraw/offset of an owner occupied loan if you have one, to reduce the interest paid to the bank?
    You need to pay tax on any income earned, so you could possibly be 20-30% better off (or more or less, depending on individual tax situation), also savings rates are generally lower than loan rates, making it an even better outcome to have $ in the redraw.

    • +3

      It would make sense to do that if you actually have a mortgage.

  • +2

    Also just tried to sign up for a westpac credit card,
    Absolutely useless customer service.
    Had to call them to grant them permission to send an email!?
    Then go to upload documets and the service fails to upload at every step.

    What a shambles.

    • +2

      The security is terrible as well, what kind of bank restricts your password to six characters exactly? You're not even allowed to use special characters either.

  • still waiting for the $50 cashback promo on my account.

  • -3

    i want to know how they can discriminate against age. do they have a waver for it ?

    or is something to do with they are your creditor when you give them your money? eg. they will only accept your credit at a higher percentage if you're younger?

    i actually don't understand how they can do this.

    • +3

      Because offering incentives to specific age groups isn’t illegal, boss. In fact, it is specifically called out in the act.

      Hilariously, it was mostly carved out because of oldies whinging about their seniors discounts.

    • +3

      is a happy meal discriminate against age?

      • Emotional discrimination

  • Interesting

  • -2

    Its too little too late for me, I'd stick with ING

  • Does anybody know if there is a way too see if you have met bonus criteria in the app or anywhere like there is in ING app?

    • unfortunately not but I've never had issues

    • +1

      Or lose half even all?

  • typical bank, dangle the carrot for 2 weeks on higher savings rate while putting up loan rates within seconds of RBA.

    • Got to fund somewhere to funnel the money from.

  • +9


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