BankWest pitches eight per cent rate at aspirational savers

Bank of Western Australia yesterday said it introduced a savings account with an interest rate of eight per cent, though this rate is available only to those with "the right savings behaviour", according to the bank's head of deposits, Paul Vivian.

Asked if the high interest rate is a gimmick, following the trend of financial institutions offering rates well above the 6.25 per cent cash rate, Vivian said, "We are trying to reward Australians for the right saving behaviour, as customers put funds aside in a formulaic way, with a 12 month goal in mind".

Denis Orrock, general manager of financial information provider InfoChoice said, "This is an account for people wanting to save money through a structured savings plan, paying the highest yield in the Australian market when monthly deposits between $50 and $500 are made".

The BankWest Regular Saver Account will pay zero interest for the month if a withdrawal is made, or the deposit conditionals are not met.

"Our target market is generally a younger audience, who are financially doing well and have the ability to continue monthly payments", Vivian said.

Vivian added the high interest account is not aimed at collecting funds for the east coast expansion, and will not cause a mass exodus from the TeleNet Saver, as this account is aimed at a different financial audience that allows investors to add and remove funds without penalty.