Virgin Money has introduced an introductory interest rate offer on its existing Boost Saver account from 2 September, enabling new customers to get an additional 0.30 percentage points for the first three months after opening a Go Account and Boost Saver together.
The move takes the total rate on the Boost account to 1.50%, which is made up of 0.10% base interest, 1.10% conditional bonus interest (conditions vary by age) and the 0.30% three-month introductory interest offer. The offer is available for a limited time only – it is set to end on 30 November, 2021.
While customers can open up to nine Boost Saver accounts, only the first one will receive the introductory interest offer, while the others will get up to 1.20% if all bonus interest conditions are met.
Virgin Money’s introductory offer sees the Boost Saver rise to the top savings rate on Canstar’s database without age restrictions, beating the next highest rates by 0.15 percentage points.
Those next best savings rates come from Rabobank, where new customers can earn 1.35% over the first four months before the rate drops to 0.25%, and ING, which also has a rate of 1.35% on its Savings Maximiser but requires customers to meet a range of bonus criteria each month to earn the full rate.
Virgin Money is owned by the Bank of Queensland, which has a savings rate available of up to 2.50% for 14-24 year-olds with balances up to $10,000 who meet the bonus criteria.
Westpac has an even higher rate for young people aged 18-29 who can earn up to 3% if they meet the major bank’s bonus conditions each month.
Canstar’s database shows interest rates on savings accounts with introductory offers are paying 0.65% on average and bonus savings accounts 0.60%, with these average rates having fallen by 0.23 percentage points and 0.22 percentage points respectively so far this year.
The moves highlight the importance for savers of comparing regularly to find the best deal they can, in terms of a competitive interest rate, an account with low or zero fees, and features that suit their saving style.
Top savings interest rates on Canstar’s database
- 1.50% – Virgin Money Boost Saver (0.10% base rate + 0.30% three-month introductory rate + 1.10% conditional bonus rate)
- 1.35% – Rabobank Australia High Interest Savings Account (0.25% base rate + 1.10% four-month introductory offer)
- 1.35% – ING Savings Maximiser (0.05% base rate + 1.30% conditional bonus rate)
- 1.25% – AMP Bank Saver Account (0.10% base rate + 1.15% conditional bonus rate)
- 1.20% – Bank of China Online Saver (0.20% base rate + 1% four-month introductory rate)
- 1.20% – 86 400 Save Account (0.10% base rate + 1.10% conditional bonus rate)
- 1.20% – MyState Bank Bonus Saver (0.10% base rate + 1.10% conditional bonus rate)
Source: www.canstar.com.au – 2 September 2021. Savings account interest rates on Canstar’s database based on a deposit balance of $10,000. Total rate includes the base rate plus promotional and conditional bonus rate, where applicable. Top seven selected based on highest total rate, excluding age-restricted products. Table sorted in descending order by total rate, followed by base rate, followed by provider name alphabetically. Check with individual providers for more details on introductory and bonus rate conditions.