$200 BABY BANK BONUS
IT is shaping up to be a very happy new year for expectant parents, with one major bank announcing it will give $200 to every Australian baby born in 2017.
Westpac today unveils its “Bump” initiative, which aims to give newborns a headstart on securing their financial future.
The bank will celebrate its own 200th birthday this year by depositing $200 into new accounts for 2017’s babies, which parents can add to over the years, until the child can access the account at age 16.
The rollout is designed to help parents and grandparents give children positive financial habits. Westpac Group consumer banking chief executive George Frazis said getting children on to a path of healthy savings can pay off significantly.
“By building on an initial $200 deposit at birth with a $20 contribution every week, for example, it will potentially amass approximately $19,000 in savings (based on a 1.5 per cent interest rate) by the time the child turns 16,” he said.
Close to 300,000 Australian babies are born each year, meaning the bank could give up to $60 million if there is full take-up from parents. The offer is open to all Australian babies born this year, even if their parents are not Westpac customers.
Rebecca Webb, of Greensborough, who is expecting her fourth child this year, said she would take up the offer. “It gives you a headstart and allows you to save some money for your child,” she said.
“Everything is expensive when it comes to kids these days, so every bit counts.”
Rebecca Webb, with son Rowan, 5, plans to take up the bank’s offer.