Virgin Money launches ‘market-leading’ 1.5% pa savings account
The Virgin Money Booster account offers a variable rate of 1.5% pa to all ages, and has been dubbed the “market leader” for savers aged 30 and over.
Virgin Money Australia has launched a new high interest savings account – the Virgin Money Booster account – to help customers increase their savings.
The digital bank says the 1.5% pa rate is the highest introductory variable rate currently available for savers aged 30 and over.
For those under 30, Westpac currently has a savings account of 3% per annum on balances of up to $ 30,000.
By comparison, Virgin Money’s new offer applies to balances up to $ 250,000.
New customers who open a Virgin Money Booster account will receive a variable interest rate of 1.5% per annum for the first three months.
After that, it reverts to 1.2% pa if the bonus interest criteria are met, which differs by age group:
- 14-17 years old: No criteria
- 18-24 years old: Deposit $ 1,000 or more each month with the linked “Go” transaction account and make at least 5 purchases (Paid Direct Debit or BPAY)
- Over 25 years: Deposit of $ 2,000 and as above.
Johnny Lockwood, general manager of loans, cards and deposits at Virgin Money Australia, said this new high interest rate is available to all age groups as people look for more ways to take control of their finances and to save.
“Particularly with the unique financial challenges they currently face as they enter and exit blockages,” Mr. Lockwood said.
“The Boost Saver account comes with an Everyday Go account, which means customers who want to take advantage of our 1.5% per annum interest rate will also be able to earn Virgin Money points through our Virgin Money Rewards program with every purchases they make on their debit card, as well as on direct debits and BPAY transactions. “
The new savings account comes shortly after Virgin Money announced its digital banking and rewards program in April.
Notable features of the rewards program include an in-app hotel reservation system and partnerships with HelloFresh, Menulog, and The Iconic to earn points and save money.
Boost Saver – Savings Account
variable rate pa
BOOST YOUR SAVINGS up to 1.5% during the first 3 months
- Red Hot Intro Rate up to 1.5% for the first 3 months
- Enjoy up to 1.2% thereafter
- Bundled with Virgin Money Go transaction account
Bad luck for savers as CommBank cuts rates again
On Tuesday, the Commonwealth Bank cut interest rates on its “NetBank Saver”.
It would be the 13th time that the big bank has reduced the interest rate on this product since the start of the pandemic, from 1.3% to 0.33%.
CommBank recently announced interest rate cuts on the following savings account products of 5 to 7 basis points:
- NetBank Saver: reduced by 7 basis points to 0.33% pa (base rate of 0.05% plus an introductory rate of 0.28% for the first five months)
- Goal saver: reduced by 5 basis points to 0.3% pa (0.05% base rate plus 0.25% bonus rate if certain conditions are met)
- Youth Saver: reduced by 5 basis points to 0.55% per annum (base rate of 0.05% plus bonus rate of 0.50% for balances up to $ 50,000)
- Retiree security: reduced by 5 basis points to 0.2% per annum (for balances of $ 250,000 and over)
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