Great video! But here is my experience: I am currently using this account at the moment, but not getting 3% rate. I have 25k in there and I get 15.96 (spending and save) + 9.06 (bonus)/ month. That is not even close to 0.25% (3%/12). I meet all the requirements. I've called them many times, they say that is correct. Clearly is not.
Thank you! The 3% is a yearly rate i.e. 3% per annum, so on your 25K balance you will accumulate 3% interest over the year, not over the month. Let me know if you need more help :)
I was on the phone with Westpac today and they said the 5 transactions does NOT include subscriptions like Spotify or Amazon. It includes every transactions like maccas, or Coles etc. There’s no set however though, so you could essentially buy 5 frozen cokes and that would satisfy the requirement, as long as you bought the cokes in 5 seperate transactions
Awesome video thank you! I will sign up and probably set up a monthly recurring payment of $2000 from my other bank so I don’t need to make too many changes
Great stuff! But I don't understand when the spend an save bonus is paid. Does this mean I get interest at two dates: the end of the month (the 0.85%), and then the spend and save bonus (the remaining 2.15%) on the 20th of the next month?
you'll need to deposit $2000 every month to avoid the $5 monthly fee unfortunately. I get my pay deposited in there from my company and that usually covers it off :)
Hi there . Im a bit confused about the $2k deposit every month into the accounts. Does this mean once deposited, maintaining the 2K deposited or just having a 2K deposit that can be used and it doesnt matter if it reduces from the compulsory 5 tramsactions? Sorry im very new to the concept of choosing the right bank
hey Shanela, the 2k deposit can be used, as long as it is deposited into the account. You can spend it, move it into savings, or transfer to another bank account. It doesn't affect the 5 transactions. That's from my knowledge and experience, best to check with Westpac for the most accurate info though!
I dont know if you are still looking at comments for this video, but I am going to ask anyway. If I was to reach $30,000 through earning interest, am I able to move that money somewhere else (like a different bank account of from a separate bank), leaving the amount that I originally invested (to start the process again)... is that like doable? in order to make as much money as possible.
hey mate, still reading them! :p yeah you can move your interest earned out to another account to earn interest on that as well, but you wouldn't move the entire 30K out as that doesn't make sense?
So just as example (my friend thought he was being smart for reading the fine print and tried to maximise his interest) if you make a new Westpac Life account and start off with a deposit of $30,000, and say the 27th day of month you transfer $1 into the account making it $30,001 (to increase value) at the end of the month interest is calculated at 0.85%? Also it is 3% interest per annum, so do we divide it by 12 to calculate the monthly interest that will be calculated on the savings? I think there has been a change, it is now 0.75pa variable interest + 2.25% spend&save. Doing the primarily school maths that is 3/12 = 0.25% interest monthly?
Hey Hussien! Thanks for watching! Q1: From what I was told from Westpac customer service, yes your final interest is 0.85% for the entire month. HOWEVER, another friend who works at Westpac has said this isn't true, and you can earn all the way up to 30,000 and any amount above is just at 0.85%. I am waiting for people to get back to me on it, I will give an update soon. Q2: You can calculate it monthly, but all interest rates are calculated daily and paid monthly. The correct daily rate is 3%/365, for annual interest on top of your principal this would be Principal*(1+0.03/365)^365 .
@@kaiserrr4024 Do you have any updates mate? Also it is really unfortunate the video failed to mention that this bonus 2.25% is only for the first 5 months from the account opening date, and, I don't quite understand the maths used in your response, applying that to 1000, it would be 1000*(1+0.03/365)^365? what is the 0.03 and how did you come to that please? your help is much appreciated, take care.
@@Krazy4K3vin I read it in the terms and conditions a couple weeks ago, it now looks like they have replaced it with a convoluted pdf. Don't take my word for it though, go to the bank yourself, if they know how do to do their job they'll know it as well (looks like there is a lot of misinformation out there about earning this interest). I went into my branch to confirm, and they confirmed. When I say first 5 months, that is for the extra 2.25% spend&save you get. The 0.75 stays the same.
We are running an experiment this month to see whether the 2.25% still works for balances over 30K. As for the math, it's basic compounding interest formula, 0.03 = 3% p.a., 365 days a year. Also I did not know about the 5 months at the time of the video. As stated in the video, please do your own research, the intention was to inform the viewer of the product. It should not be considered holistic in nature.
Quick question, so say I open the account and put $30k in the life account straight away. And each month I deposit $2k and then transfer that to my life account will I get 3% on the first 30k then lower rate for anything above 30k? Eg, account total is $35k so 3% on $30k and lower rate on remaining $5k? Also what if you withdraw from the life account on a given month, any penalities?
Thanks for watching first of all! Q1 - I have heard conflicting things on this. Westpac Call Centre said if you have an amount over 30K e.g. 35K, you get lower rate on the entire 35K. However, my mate who works at Westpac says you get 3% on 30K and lower rate on 5K - I will get back to you on this. Q2 - You can withdraw, but you forego the 0.45% if you don't increase your balance by the end of the month.
@@kaiserrr4024 Cheers for the reply. I had a chat to Westpac support and they said if the amount reaches over $30k then the spend and save bonus of 2.25% does not apply. But let me know what your friend says. Good to get a clear idea. Thanks.
In the choice account, when you mentioned to deposit $2000 to avoid the $5 fee. Does it mean you must deposit $2000 in the choice account every month? Or just that one time when you open that account?
Hey mate keep it up. I just turned 18 and I opened a commbank account, would you recommend switching to westpac
Thanks Mahde! I would definitely recommend switching to Westpac and making the most of that 3% p.a. interest
@@kaiserrr4024 Thanks! By the way, since I'm a student. Do you know if they charge when you take out cash? Also, do taxes apply to interest?
No problems - If you withdraw from a Westpac ATM or branch, no charges; for other ATMs I'm not too sure. Yes taxes apply to every interest account.
Great video!
But here is my experience:
I am currently using this account at the moment, but not getting 3% rate.
I have 25k in there and I get 15.96 (spending and save) + 9.06 (bonus)/ month. That is not even close to 0.25% (3%/12). I meet all the requirements. I've called them many times, they say that is correct. Clearly is not.
Thank you!
The 3% is a yearly rate i.e. 3% per annum, so on your 25K balance you will accumulate 3% interest over the year, not over the month.
Let me know if you need more help :)
Hey man. Great video. Quick question, is there a minimum $ for my five transactions per month??
Hey Anton, thanks mate! No minimum value, it can be as little as $1!
Super informative and great illustration!
thanks Laz! glad it helped :)
Great stuff! Super important info for us young people to know 🙂
thanks Nikhil! pass onto others so they can benefit too!
Hey mate great vid, would you know if the 5 transactions include monthly services like amazon prime and Spotify?
I was on the phone with Westpac today and they said the 5 transactions does NOT include subscriptions like Spotify or Amazon. It includes every transactions like maccas, or Coles etc. There’s no set however though, so you could essentially buy 5 frozen cokes and that would satisfy the requirement, as long as you bought the cokes in 5 seperate transactions
@@jordan.ybanez thanks for your answer! Couldn’t get anyone to tell me when I messaged their support. You’re a legend!
The interest rate has gone down to 2.5% now. Still competitive but not as good..
Light years ahead of the other products! Even at 2% p.a. which it is now...
@@kaiserrr4024 I’m assuming it’s gone down probably to do with international trade not being as strong as it was last month?
@@charlierank744 my thought is that the product is not profitable and there's probably a lot of uptake, so they have to lower the rate
Awesome video thank you! I will sign up and probably set up a monthly recurring payment of $2000 from my other bank so I don’t need to make too many changes
Good stuff, it's a great product and will save you more money for a rainy day!
@@kaiserrr4024 Yes! I get so excited every month receiving interest that is so much higher than CommBank lol
@@cocomidnight so much higher than everything else!
good job man, i will subscribe :D
Thanks Abrar, you're a legend!
Hey mate. Can you confirm the 5 purchases can be anything ? As in I can buy a cookie for 30 cents and it counts ?
yes that's right, it can be as little as 30 cents! as long as you see something like "Debit Card Purchase" it counts
@@kaiserrr4024 legend thank you !!
Great stuff! But I don't understand when the spend an save bonus is paid. Does this mean I get interest at two dates: the end of the month (the 0.85%), and then the spend and save bonus (the remaining 2.15%) on the 20th of the next month?
yes that's right, first 0.85% paid on the end of the month, remaining 2.15% paid by the 20th of the next month (usually comes in on the 15th ish)
@@kaiserrr4024 legend! Thank you! Saves me a call to Westpac 😂
Do you need to deposit $2000 every month to avoid the $5 monthly fee or do you only need to deposit that amount once? Thanks!
you'll need to deposit $2000 every month to avoid the $5 monthly fee unfortunately. I get my pay deposited in there from my company and that usually covers it off :)
Hi there . Im a bit confused about the $2k deposit every month into the accounts.
Does this mean once deposited, maintaining the 2K deposited or just having a 2K deposit that can be used and it doesnt matter if it reduces from the compulsory 5 tramsactions?
Sorry im very new to the concept of choosing the right bank
hey Shanela, the 2k deposit can be used, as long as it is deposited into the account. You can spend it, move it into savings, or transfer to another bank account. It doesn't affect the 5 transactions. That's from my knowledge and experience, best to check with Westpac for the most accurate info though!
@@kaiserrr4024 thanks kaiser! I think ill be making my switch😄
I dont know if you are still looking at comments for this video, but I am going to ask anyway. If I was to reach $30,000 through earning interest, am I able to move that money somewhere else (like a different bank account of from a separate bank), leaving the amount that I originally invested (to start the process again)... is that like doable? in order to make as much money as possible.
hey mate, still reading them! :p
yeah you can move your interest earned out to another account to earn interest on that as well, but you wouldn't move the entire 30K out as that doesn't make sense?
Awesome video thanks 👍🏻
Hope it was useful! Thanks for watching :)
In regards to the transactions, can it be something as small as a $1 purchase each time?
Absolutely, it can be $1 purchases, or even less, maybe a 50c soft serve from Maccas :p
@@kaiserrr4024 Thanks for sharing!
So just as example (my friend thought he was being smart for reading the fine print and tried to maximise his interest)
if you make a new Westpac Life account and start off with a deposit of $30,000, and say the 27th day of month you transfer $1 into the account making it $30,001 (to increase value) at the end of the month interest is calculated at 0.85%?
Also it is 3% interest per annum, so do we divide it by 12 to calculate the monthly interest that will be calculated on the savings?
I think there has been a change, it is now 0.75pa variable interest + 2.25% spend&save.
Doing the primarily school maths that is 3/12 = 0.25% interest monthly?
Hey Hussien! Thanks for watching!
Q1: From what I was told from Westpac customer service, yes your final interest is 0.85% for the entire month. HOWEVER, another friend who works at Westpac has said this isn't true, and you can earn all the way up to 30,000 and any amount above is just at 0.85%. I am waiting for people to get back to me on it, I will give an update soon.
Q2: You can calculate it monthly, but all interest rates are calculated daily and paid monthly. The correct daily rate is 3%/365, for annual interest on top of your principal this would be Principal*(1+0.03/365)^365 .
@@kaiserrr4024 Do you have any updates mate?
Also it is really unfortunate the video failed to mention that this bonus 2.25% is only for the first 5 months from the account opening date, and, I don't quite understand the maths used in your response, applying that to 1000, it would be 1000*(1+0.03/365)^365? what is the 0.03 and how did you come to that please?
your help is much appreciated, take care.
@@grasshopper4033 where is it mentioned that the 2.25% is only for the first 5months?
@@Krazy4K3vin I read it in the terms and conditions a couple weeks ago, it now looks like they have replaced it with a convoluted pdf. Don't take my word for it though, go to the bank yourself, if they know how do to do their job they'll know it as well (looks like there is a lot of misinformation out there about earning this interest).
I went into my branch to confirm, and they confirmed.
When I say first 5 months, that is for the extra 2.25% spend&save you get.
The 0.75 stays the same.
We are running an experiment this month to see whether the 2.25% still works for balances over 30K.
As for the math, it's basic compounding interest formula, 0.03 = 3% p.a., 365 days a year.
Also I did not know about the 5 months at the time of the video. As stated in the video, please do your own research, the intention was to inform the viewer of the product. It should not be considered holistic in nature.
So if you have more then 30k, you don’t get the 3% interest?
that's right, only on the first 30k!
@@kaiserrr4024 so i would need to reduce the money on the account to 30k if i have more to get the 3%. got it thanks
Quick question, so say I open the account and put $30k in the life account straight away. And each month I deposit $2k and then transfer that to my life account will I get 3% on the first 30k then lower rate for anything above 30k? Eg, account total is $35k so 3% on $30k and lower rate on remaining $5k? Also what if you withdraw from the life account on a given month, any penalities?
Thanks for watching first of all!
Q1 - I have heard conflicting things on this. Westpac Call Centre said if you have an amount over 30K e.g. 35K, you get lower rate on the entire 35K. However, my mate who works at Westpac says you get 3% on 30K and lower rate on 5K - I will get back to you on this.
Q2 - You can withdraw, but you forego the 0.45% if you don't increase your balance by the end of the month.
@@kaiserrr4024 Cheers for the reply. I had a chat to Westpac support and they said if the amount reaches over $30k then the spend and save bonus of 2.25% does not apply. But let me know what your friend says. Good to get a clear idea. Thanks.
Hey @@kaiserrr4024! I was wondering if you have a definitive answer for Q1?
@@christinavuong491 Hi Christina, Westpac friend is correct, 3% on the 30K then normal rate on any balance above 30K
@@kaiserrr4024 thank you! :)
In the choice account, when you mentioned to deposit $2000 to avoid the $5 fee. Does it mean you must deposit $2000 in the choice account every month? Or just that one time when you open that account?
Has to be every month
Yep, like Krazy4K3vin said, 2000 needs to be deposited every month
Awesome video!!
Thank you Radoya!
"limited time only" then they shaft you :D
This will apply to me in a couple of months 😁😂
haha that's the way DV!