Intro bonus rates get bigger

At-call online savings accounts are increasingly offering bonus or introductory rates that are much higher than their base rate. The gap between their bonus rate and the base rate is also increasing. Virgin Money’s attention grabbing headline rate of 6.75 per cent lasts only for four months before reverting to 5.35 per cent.

Last month CUA introduced a bonus rate of 6.3 per cent to its at-call online savings account rate of 4.9 per cent. UBank’s bonus rate applies if there is an automatic savings plan in place. General Manager Alex Twigg said the bonus rate rewards good savings habits.

Source: The Age