World News – AU – Young Aussies offered the highest savings rates in 2020

Most Australians don’t enjoy their savings accounts very much right now. In our snapshot of the savings rate landscape in December, we saw that the average ongoing savings rate in Mozo’s database has fallen to less than half a percent. But there is some hope and it is being held in the hot little hands of young savers. Specialized savings accounts for children and young adults really lead the way, with interest rates up to 3. 00%. If they have been educated well, everyone who sits in the appropriate age group should save, while the variable saving rates are good. Check the fine print of the market leading accounts listed below for all of the conditions you need to meet in order to receive bonus interest.

The Bank of Queensland raised interest rates on this account by 50 basis points (bp) in November. This was in the midst of a barrage of cuts, so it’s a good time to jump on board, especially since the account won the Mozo Experts Choice Award for student savings. When you are on a savings train and your account balance exceeds the ten-grand limit for the 3. 00% interest you can earn 1 more. 05% bonus interest on every dollar between 10. 000 and 250. $ 000. Bonus Interest Criteria: You need a linked Day2Day Plus account where you deposit $ 200 or more every month. You must also complete five eligible transactions during the month to get the maximum rate (the base rate is a miserable 0). 05% so make sure you meet the criteria).

If you open a Westpac Life account and are in the magical 18-29 age bracket, 3 will automatically be displayed. 00% interest on up to 30. $ 000 savings (as long as you meet the criteria). Remember, any amount above this can only earn 0. 55%, and if you don’t meet any of the savings conditions, the base rate is only 0. 20%. Bonus Interest Criteria: You must complete five cleared transactions during the month using a linked Westpac Choice account and increase your savings to receive this premium price. There is a monthly fee of $ 5 for the transaction account. However, you can avoid this by doing 2 every month. Deposit $ 000 (so maybe put your salary in there). .

While Newcastle Permanent cut its Smart Saver account by 25 basis points in November, this is still a competitive rate compared to bonus interest options available for all ages. Bonus Interest Criteria: Simply add at least $ 10 per month to your balance (excluding your interest income as always) and make no more than two withdrawals and you’ll get the maximum rate. However, here’s your official base rate warning: if you don’t meet these conditions, you won’t get any interest on your savings at all (yup, 0). 00%).

Real young people can start their savings journey (with the permission and assistance of a wise supervisor) at this fabulous interest rate. Bonus Interest Criteria: Proactive savers and their parents must make at least one deposit per month and withhold withdrawals in order to receive the bonus. Otherwise, the child credit only receives the tiny base rate of 0. 01%.

This is easy to use for both children and parents. You can link the account to a free transaction account or simply deposit savings from another location. Bonus Interest Criteria: The balance must increase by at least $ 5 each month and no withdrawals can be made. Children continue to receive a decent 1. 00% interest rate if you forget these conditions.

This is another savings account that can be withdrawn on its own so children and their parents can focus on building savings rather than spending pocket money. Bonus Interest Criteria: Bonus Interest is available when depositing $ 20 each month and not making any withdrawals. The 1. The 80% rate applies to balances between 500 and 50. $ 000. For children just starting with $ 0 to $ 499, the maximum rate is 1. 55%. Base rates also change based on the balance amount, with savings over $ 500 earning 0. Collect 50% and those under 0. 25% if the bonus conditions are not met.

The only catch with all of these savings accounts is the age-based timeline. If you do not discover the elixir of youth, then you are not always entitled to use it. So what happens when you leave your savings account?

Many banks have a policy to switch your account from a child or youth option to their standard savings account once you are no longer in the appropriate age group. For others with built-in savings rates for different age groups, just get the standard rate instead of the higher age-specific option.

The regular savings rate at your current bank may not be as high even if the youth account was there. So treat yourself to a top savings rate when your birthday approaches the age limit by comparing your options.

Visit Mozo’s savings accounts comparison page to find an account that will serve you well in the next stage of life.

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As one of Mozo’s money writers, Olivia Gee shares her research and insights into banking, insurance, and real estate to help readers save money. She loves being in a story, revealing all the facts, breaking down statistics and drawing on personal experiences – that’s what drives her as a journalist. She holds a double degree from the University of Wollongong with a BA in Journalism and Media and Communication.

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