Virgin Money Boost savings account: Great rate, but what’s the catch?
Virgin Money's new Boost Saver savings account offers a competitive bonus rate of 1.2% p.a., but there are a few conditions to meet first.
Virgin Money has launched a new savings account to the market with an attractive total bonus rate of 1.2% p.a. The Virgin Money Boost Saver account is linked to a transaction account (the Virgin Money Go account) and offers a bonus rate on top of the standard variable rate when you meet a few different account conditions.
The conditions you need to meet to earn the total bonus rate of 1.2% p.a. depends on your age:
- If you're aged 14-17: You don't have to meet any account conditions, you'll automatically earn the total bonus rate.
- If you're aged 18-24: You need to deposit $1,000 a month and make 5 or more purchases a month (this includes BPAY payments and direct debits settled during the month).
- If you're aged 25+: You need to deposit $2,000 a month and make 5 or more purchases a month (again, this includes BPAY payments and direct debits settled during the month).
How does the Virgin Money Boost Saver account compare?
In the current low-rate environment, the 1.2% p.a. bonus rate offered with the Virgin Money Boost Saver is actually quite competitive. However if you're under 30, you can get a much better rate with Westpac Life.
The Westpac Life savings account offers a total bonus rate of 3% p.a. for customers aged 18-29. To get this high rate, you need to grow your balance (by any amount) and make 5+ transactions each month from your linked Westpac bank account. While this rate is significantly higher than Virgin Money's, it's only available on balances up to $30,000.
If you're over 30, ING Savings Maximiser currently offers one of the best ongoing bonus rates at 1.35% p.a. To earn this rate, you need to link to an ING Orange Everyday account and meet the following criteria each month: deposit at least $1,000, make 5+ card purchases and grow your Savings Maximiser balance (excluding interest earned).
The newly-launched AMP Saver account offers a total bonus rate of 1.25% p.a., only slightly high than Virgin Money's new rate. It's also easier to earn this rate with AMP as you only need to deposit $250 a month, with no spending requirements to meet.
If you haven't checked your savings account rate in a while, it might be time to switch. Compare high interest saving accounts and switch to one that can help you earn more interest on your money.