Westpac offering $200 to all babies born in 2017
Bonus payment to mark bank's anniversary.
Westpac is getting generous for its 200th anniversary, promising $200 in a savings account for all babies born in Australia between 1 January and 31 December 2017.
Parents can apply online to register their interest in the Bump Savings Account, which will officially launch on 8 April 2017. All accounts opened for a newborn resident in Australia during the year will be eligible for the $200 payment. Parents will need to confirm their child's identity with a birth certificate, and will have until 31 May 2018 to do that. The $200 won't be able to be withdrawn until the child turns 16.
Westpac hasn't yet disclosed the full range of terms and conditions associated with the account, but has confirmed that it won't charge any monthly service fees. In the press release announcing the account, an example is quoted of how much you could earn if the account earned 1.5% p.a. in interest, but Westpac tells us that the actual rate hasn't yet been finalised and this is merely an example.
Our roundup of kids' savings accounts shows that 1.5% is currently at the lower end of rates for an account aimed at children, so we'll have to wait and see where the account eventually lands. You can potentially attract a higher rate with a bonus saver account, but those often have higher minimum deposit requirements.
Parents can express interest in the account online ahead of the official launch in April. According to Westpac research, 71% of children under the age of 5 in Australia have a savings account.