The Smart eSaver account gives you a real incentive to save by paying you a bonus interest rate just for making no withdrawals each month. You have to link your savings with a Bankwest transaction account, which will then make managing your savings and making transfers as easy as logging into your account online. With no fees to pay, you can feel confident that your savings are growing at a steady rate.
The bonus interest rate is exclusive to those who currently hold a Bankwest transaction account.
What are the features of the Bankwest Smart eSaver savings account?
The award winning Bankwest has packed its Smart eSaver account with benefits that make reaching a savings goal easy. Compare the following features with what other banks offer in their online savings products to see which one fits in best with your savings style:
- Monthly account keeping fees. You will not be charged any monthly fees for your savings account, but you may have to pay a fee for the linked account depending on which you choose.
- Interest rate. A nominal interest rate is applied to your balance for those months where you make a withdrawal from your savings.
- Bonus rate. When you don’t make any withdrawals from the account in a calendar month, you are rewarded with a variable competitive interest rate on balances of up to $500,000.
- Interest calculation. The interest is calculated daily and paid into your account on the first day of the subsequent month.
- Monthly deposit requirement. There is no minimum deposit requirement for each month.
- Linked account. You do have to have an active Bankwest transaction account to link to your Smart eSaver.
- Access. You can transfer money in and out of your savings account over the phone or online.
- App accessibility. Bankwest offers an app for iPhone and Android mobile devices that gives you the same access to your savings account as online banking does.
- Direct credit. This account allows for direct credits via electronic deposit.
- $0 minimum balance needed.
- Access and manage your account anytime via internet banking.
- $0 account keeping fee.
- This account should be linked to another account to withdraw cash.
How do I apply for the Bankwest Smart eSaver Savings Account?
Bankwest makes it easy to apply for their savings products by providing an application online. If you have found that this account has the features you need to meet your savings needs, click “Go to Site” to begin your application. Before you will be able to begin, you will need to show that you meet the following eligibility requirements:
- Minimum age. Applicants can be as young as 12 years of age, but those under 18 will need the assistance of an adult to complete the application.
- Residency requirements. Australian citizens and permanent residents are welcome to apply, as well as temporary residents with valid visas. Temporary residents should keep in mind that there may be additional requirements that need to be met in order to qualify for this account.
- Depository requirements. You will be required to make an initial transfer of at least when you open this account.
You should also note that this account requires that you have a transaction account with Bankwest first, so you may have to open that type of account before you can apply for the Smart eSaver. If you prefer to keep only one account for savings and spending, you may want to look into the Hero Saver Bank Account from Bankwest. If you are ready to proceed to the application for the Smart eSaver, gathering the following documentation before you begin:
- Tax file number. As this is an interest earning account, you will want to provide your tax file number (TFN) or exemption code. If not, Bankwest is obligated to withhold tax on your interest earnings at the highest marginal rate.
- Identification. Photo identification such as your passport or driver’s licence will be required in order to confirm your identity.
- Linked account. You will need to be able to provide your Bankwest transaction account details including the BSB and account number that you will be using as the linked account.
You will receive a confirmation email after applying and your account will be opened immediately if you have provided all of the necessary information. If not, you will be informed of the next steps you need to take in order for Bankwest to issue the account in your name.
What is the interest rate on the eSaver account?
The eSaver account has two applicable interest rates, a Smart Rate and a Standard Rate. The Smart Rate is earned on your balance each month you don't make a withdrawal. If you do need to make a withdrawal from your eSaver, you'll only earn the lower interest rate for that entire month.
Will the Smart Rate change with the Reserve Bank's decisions on the cash rate?
The Smart Rate is a variable rate and is subject to change at any time, at Bankwest's discretion. The SmartRate is in place however, to keep the eSaver account competitive with the high interest accounts offered by other banks and financial institutions, and so Bankwest will try and always keep that rate competitive.
Will the Standard Rate change with the Reserve Bank's decisions on the cash rate?
The Standard Rate is based on Bankwest's standard variable rate and so may also change if the RBA changes the cash rate.
How is the bonus Smart Rate earned on the eSaver account?
All Bankwest customers with an eSaver account are eligible to earn the SmartRate on their savings in any month they don't make a withdrawal from that account.
When is the bonus Smart Rate not earned?
You will not earn the Smart Rate interest rate in any month you make a withdrawal, for the entire month. If you make a withdrawal from your eSaver account, only the Standard Rate will apply to your balance that month. The Standard Rate will apply to all balances for the whole month in which you made a withdrawal, not just from the time of the withdrawal.
How is interest calculated and paid?
Interest is calculated daily, and paid monthly on the first business day of every month.
Why might the interest earned in some months be different, when the balance remains the same?
Interest is calculated on your balance daily and paid into your eSaver account on the first business day of the following month. Therefore, the interest earned in a month can fluctuate, depending on the number of days in the month; if the first day of the month falls on a weekend or public holiday, your interest will be paid on the next business day. Over the course of a year, you will receive the correct amount of interest as you will receive more in some months and less in others.
For example, where there are 30 days in April, but the 1st and 2nd of May fall on a Saturday and Sunday, interest for April would be paid on Monday 3rd of May and be calculated on 32 days. The interest for May would then be calculated from the 4th, and if the balance remained the same, the interest could potentially be less as it is being calculated on only 27 days.
How many eSaver accounts can be opened?
You may only open one Bankwest Smart eSaver account per person. When an eSaver account is held in joint names, you are still entitled to only one account each. Therefore, if you have a joint eSaver account, you cannot open another account solely in your name.
Can the Smart eSaver account be used as a trust, for business or as a superannuation fund?
The Bankwest Smart eSaver account cannot be used as a trust, for business or as a superannuation fund. The eSaver is a personal account and not suitable for business or other use.
For business use, the Bankwest Business TeleNet Saver is the equivalent account. The eSaver and the TeleNet account cannot be linked in any way, as the eSaver account must be linked to a personal transaction or savings account. An existing TeleNet Saver account cannot be converted to become an eSaver account; the two accounts will need to be opened separately.
When will the initial deposit be debited from your linked account?
When a new eSaver account is opened, the initial deposit is then debited from your linked account, and your eSaver is activated.
Can you use your eSaver account at a Bankwest branch?
You cannot make deposits or withdrawals on your Smart eSaver account in a Bankwest branch as the account is solely an online account. Transactions on the eSaver account can only be conducted over the phone or internet; this is what enables Bankwest to waive all maintenance and transaction fees for the account.
For more information about how the Bankwest Smart eSaver account can help you take control of your savings and meet your financial goals, find out more and give your savings a boost today.