We could all use a little incentive that encourages us to save, so Bank of Melbourne is offering a bonus interest rate of 1.75% p.a. if you make at least one deposit every month (no minimum amount) and no withdrawals.
Link it to a transaction account and set up automatic direct credit and you can set and forget.
One of the best features is that there is no minimum deposit you need to make per month for the bonus interest. You could even deposit $1 and still get the bonus rate.
What are the features of the Bank of Melbourne Incentive Saver account?
Compare these features with savings accounts at other banks and see if the Incentive Saver Account has what you need to reach your financial goals.
Standard, variable interest rate of 0.01% p.a.
The standard interest rate for the Incentive Saver account is 0.01% p.a. - this is a steep drop from the bonus rate so you may want to avoid withdrawing.
Bonus interest rate of up to 1.75% p.a. when you make a deposit and don't withdraw
If you are able to make at least one deposit by the end of the month and refrain from making any withdrawals, the interest rate is raised by 1.74% p.a. to 1.75% p.a. This rate applies to the entire balance.
Don't worry, if you miss out on the bonus interest for this month, you can still get it the next.
How is the interest calculated?
The interest is calculated daily and paid monthly. It is a variable interest rate, so will most likely move alongside the RBA cash rate.
Online, phone and branch accessibility
You can access your account by going to the branch, using an ATM, EFTPOS or BPAY. You are also allowed internet and phone banking with your Incentive Saver account.
$0 Account fees
There are no monthly account service fees with this account. In addition the following is offered with no fee: Internet banking, phone banking, ATM withdrawals at Bank of Melbourne, Westpac, St.George, and BankSA in Australia, EFTPOS, electronic agencies, teller assisted transactions and Bank@Post.
$0 Transaction fees
Additionally, you are not charged a fee for the following transactions: Direct debit, periodical payments, cash withdrawals made overseas, including those using an ATM (keep in mind that the issuing bank may impose their own charges, although you will usually be informed of those before the transaction is completed), an ATM Mini transaction history available at any Bank of Melbourne ATM, monthly statements and collection items.
3.00% p.a. Foreign currency conversion fee
For any transaction where the currency needs to changed from or to the Australian dollar, you will be charged 3.00% p.a. of the Australian amount.
The Bank of Melbourne Incentive Saver Account is only available for personal use and is not intended for businesses or self managed superannuation funds (SMSFs). To compare other accounts from Bank of Melbourne, please see this page.
- $0 monthly account service fee
- With an option of bonus interest every month
- Bonus interest available on the whole balance
- Free internet and phone banking
- Limited free withdrawal every month
- Foreign currency conversion fees applies
How do I apply for the Bank of Melbourne Incentive Saver Account?
Applying for the Incentive Saver account can be done online or even from your Bank of Melbourne app. If you have compared this savings account to others, and feel it is right for you, click ‘Go to site’ to be taken to the secure application page.
Eligibility to apply online
Check here first in order to ensure that you meet the requirements set forth by the Bank of Melbourne for opening this account:
- Age. This account is available for individuals who have reached their 18th birthday.
- Opening balance. You will need to open your account with a minimum of $1.
- Residency requirement. This account is only available to Australian permanent residents who have a valid residential address.
Documentation when applying online
Once you determine that you can meet these requirements, gather the following information and proceed to the secure application form:
- Contact information. In addition to your name and address, you will need to provide the bank with an e-mail address where they can send you important information regarding their services.
- Account information. If you are an existing customer, the Bank of Melbourne will ask for the numbers to the other accounts you hold with them.
- Identification documents. All applicants must be able to provide one photographic identification document. This could be a passport, driver’s licence, foreign national identity card or an 18+ proof of age card issued by the state or territory. If you do not have one of these documents you can use a primary non photo id such as a birth certificate or Centrelink pension card accompanied by a secondary identification document such as a Medicare card or lease agreement.
What happens after the application?
If you have the right documentation filling out the application should not take more than five minutes. Once submitted, you should receive notice within two business days that the account has been opened and is ready for deposits and other transactions.