Australia: Bonus savings rates on offer for first home buyers

Despite the RBA holding the cash rate at 1.50% for the 6th meeting this year and 21st meeting consecutively, Westpac has announced a new bonus savings rate exclusively for first home buyers.

The ‘Saving for a Home’ bonus interest rate is available to Westpac customers who hold a Westpac Life savings account. A function within this account is the ability to allocate up to 6 trackable goals to the one account via Westpac’s online banking platforms.

Savers who add a new ‘home and property’ savings goal during the offer period with have access to an extra bonus rate of 0.20% p.a. fixed interest for 6 months. With an existing variable bonus rate of 0.80% p.a. for monthly account growth, first home buyers can potentially earn up to 2.50% p.a.

RFi Group data indicates that Millennials are likely to have a shift in their priorities for savings between 18-24 and 25-34 years of age. Savers, who identify that they have a specific savings goal, shift from holiday and travel based goals to a house deposit, making Westpac’s bonus rate potentially very appealing to a key market segments wich are savers aged 25-34 years.


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