BankWest has continued its onslaught in the Australian banking market with the launch of a transaction account for everyday use offering a high interest rate from the first dollar- the new BankWest Hero Transaction Account, paying 500 times more interest than transaction accounts offered by the Big Four.
This ground-breaking banking account has no monthly maintenance fees and pays 5.00% pa interest on balances of up to $5,000, compared to most transaction account interest rates of just 0.01% pa, provided customers deposit $2,000 per month (for example a regular salary deposit).
BankWest Retail Chief Executive Ian Corfield said the new product was another example of how BankWest's promise to challenge the Big Four was increasing competition and benefitting customers.
"When we announced the rollout of our east coast branch network, we promised Australians would continue to see new market-leading products offering real alternatives to the Big Four banks," he said.
"We're giving Australians the best reason yet to look at their banking arrangements, especially their accounts for everyday use, and to seek a better deal."
Mr Corfield said that the transaction account and home loan were at the heart of the customer relationship and he expected the BankWest Hero Transaction Account to attract new customers to BankWest. However, existing barriers had to be brought down to make it easier for customers to switch banks to get a better deal.
"Our research shows there are significant barriers to switching banks at present and we are providing ways to make that easier for customers, including a new online switching tool," he said.
Newspoll research commissioned by BankWest shows that nine in 10 Australians would consider switching banks for more competitive products and convenient branch locations.**
The BankWest Hero Transaction Account comes hot on the heels of BankWest high interest-bearing savings accounts, such as the BankWest Kids' Bonus Saver, offering a bonus rate of 10%pa, the BankWest Regular Saver, offering 8% pa when account conditions are met and the BankWest TeleNet Saver offering a variable 12-month introductory interest rate of 7%pa for new TeleNet customers.
The new BankWest Hero Transaction Account will be available through BankWest branches, over the phone (13 17 18) or at bankwest.com.au, from 9 October 2007.
*On balances up to $5,000 as confirmed by Infochoice
**BankWest commissioned Newspoll to survey a representative sample of 700 adult Australians in Sydney, Melbourne, Brisbane, Adelaide and Perth in June 2007
Notes to the editor:
How the BankWest Hero Transaction Account works
- 5% pa interest on balances up to $5,000 (No interest is paid on balances over $5,000).
- No minimum balance, no monthly maintenance fees and no transaction fees (except for other-bank ATM and overseas transaction fees) and have the convenience of a Mastercard debit card attached.
- Requires minimum deposit of $2,000 per month (e.g. salary) but as many withdrawals and deposits as you like.
- To be eligible for this account, the customer is required to verify their ability to meet the $2,000 monthly deposit requirement and satisfy BankWest's lending criteria.
How the BankWest TeleNet Saver works
The BankWest TeleNet Saver offers a variable 12 month introductory rate of 7.00% p.a. for new TeleNet customers for savings.
How the BankWest Regular Saver works
Customers receive 8% p.a. interest on the Regular Saver account, paid monthly, when they deposit between $50 and $500 in that month and make no withdrawals during that month. Maximum deposits of $500 per month. No interest is paid in a month where the customer makes a deposit of less than $50 and/or makes a withdrawal. The account must be linked to another eligible BankWest account and the balance will be transferred to that account on each anniversary of account opening.
How the BankWest Kids' Bonus Saver works
The Kids' Bonus Saver is designed to encourage children to save regularly by rewarding them when they make regular deposits. Children receive 10% p.a. bonus interest on the Kids' Bonus Saver account, paid monthly, when they deposit between $25 and $250 in that month and make no withdrawals during that month. Maximum deposits of $250 per month. Standard interest of 0.01% p.a. is paid in a month where the child makes a deposit of less than $25 and/or makes a withdrawal. The account must be linked to a Children's Savings Account which pays interest of up to 5.25% p.a. The balance above $1.00 will be transferred to that account on each anniversary of account opening and kids can once again start saving money in the Kids' Bonus Saver.
