BankWest Launches Innovative High Interest Online eSaver Account
BankWest has launched an innovate new online savings account that pays a bonus rate of interest every month so long as the account holder does not run any transactions. The account known as Bankwest Smart eSaver pays a base interest rate of 3.25 per cent, with BankWest committing to pay an interest either in line or above the official cash interest rate.Depositors will be able to earn the bonus or “smart rate” of 5 per cent during any month the account holder make no withdrawals (all rates correct at time of posting).
Though BankWest has said the base rate for its eSaver account will move in tandem with Reserve Bank monetary policy, it has remained non committal on the spread it pays on its “smart rate” which is currently 1.5 per cent.
BankWest already offers one of the most popular high interest online savings accounts known as Telenet Saver. That account which pays an introductory first year interest rate of 4.25 per cent and a base rate of 3.45 per cent allows for an unlimited number of transactions and “serves a different function” according to BankWest head of retail deposits Paul Vivian .
BankWest through the new account is targeting depositors, with maturing term deposits. Depositors that invested in a term deposit a year ago would have locked in an interest rate of eight per cent or higher, which compared with today’s official cash rate looks is spectacular. Thos deposits which are maturing are faced with interest rates which are half that or even less if they roll over.
Top rates on term deposits are up to 4.5 per cent for three month terms and around four per cent for six and 12 month terms.
The eSaver account has no account maintenance or access fees. The customer must have a linked transaction account for transfers.
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SmartyPig An Online Savings Account For Australia’s Generation Y
Australian Banking Major ANZ has teamed up with US based company SmartyPig to launch an online savings product with a difference. According to the website, ANZ SmartyPig “is a unique savings program designed to make saving social, goal-oriented and fun. SmartyPig uses the power of social networking and retailer value boosts to help people reach their savings goals faster.”
At time of publishing the interest rate that SmartyPig accounts pay is an extremely competitive 4.5 per cent which is paid once a quarter with no fees. The idea behind the account is relatively simple. Individuals set savings goals with a specific purchase decision in mind, which can be as little as $500 for a Blue Ray DVD player, or $5000 for a holiday to Bali.
The savings decision is purely up to the individual with the minimum amount being $250. Once the information is supplied to SmartyPig, it will then calculate the exact amount the individual needs to save each month to reach their goal and deduct the amount automatically from the individual’s current account, with the individual being able to track their own progress.
The most unique feature of SmartyPig is its web 2.0 compatibility. Individuals can make their savings goals public through social networking sites such as Facebook and MySpace, and if family or friends want to contribute to the goal, they can either do so through SmartyPig or through the social networking sites themselves.
SmartyPig also allows savings to be converted in gift certificates of leading retailers such as David Jones, Virgin Blue Holidays and Bunnings. Savings converted into gift certificates get a value boost of anywhere between 4 to 8 per cent.
SmartyPig is an attractive way to start teaching children the value of savings. To open an account one needs to be over 16, but parents wanting to teach their children how to save can open an account in their own name.
Co-founder Jon Gaskell said the technology would improve the spending habits of young Australians, who have a “buy now, pay later” attitude. “Because of the viral and social nature of it we see kids getting involved,” he said.
“We need to rethink how we use credit cards. We need to be socially responsible with finances more than ever. Generation Y are plugged in 24/7. It is the new nuclear family, and we want you to take up saving before you buy into the social space.”
SmartyPig’s deposits are managed by ANZ but customers of any other bank can sign up.