Smart eSaver account competing with term deposits
BankWest has launched a new account with a bonus for making no transactions. The Smart eSaver has a base rate of 3.25 per cent. The bank has said it will maintain the base rate at or above the official cash rate. Depositors will earn the "smart rate" of five per cent in any month they make no withdrawals.
The account has no account maintenance or access fees. The customer must have a linked transaction account for transfers. The bank is hoping to pick up deposits from retail investors whose term deposits are maturing.
Anyone who went into a 12-month term deposit this time last year would have got eight per cent or better and is now faced with rates half that or less if they roll into a new term. 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.
Source: The Sheet