BankWest offers a no-transaction bonus account

Banks continue to pitch for a bigger share of deposits and yesterday it was BankWest's turn to try a new angle. The bank launched a savings account that will pay a bonus interest rate each month if there are no transactions.

BankWest 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 base rate will move in line with Reserve Bank monetary policy changes. BankWest has not given a commitment to maintain the smart rate margin at its current spread.

BankWest has one of the more popular high-interest online savings accounts, TeleNet Saver, which has a 12-month introductory rate of 4.25 per cent and a base rate of 3.45 per cent.

BankWest head of retail deposits Paul Vivian said TeleNet Saver allows for unlimited transactions and serves a different function.

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.

The account has no account maintenance or access fees. The customer must have a linked transaction account for transfers.