Canstar has announced the Bank of the Year – Junior Banking, Bank of the Year – Youth Banking, as well as the just-launched Bank of the Year – Tertiary Banking.
For 2018, ASB is the Bank of the Year – Junior Banking and the first-ever Bank of the Year Tertiary Banking, while Westpac is the Bank of the Year – Youth Banking.
These awards recognise providers that offer outstanding value banking products and services to children and students in New Zealand. Providers are measured on the savings rates and fee levels, but also on the education and support available.
Canstar has compared a total of 41 savings accounts, 32 transaction accounts and 17 credit cards, from 10 institutions, across the three award categories.
What are the junior, youth and tertiary banking awards?
Canstar separates the three award categories according to age levels; the Junior Banking category is based on products for consumers aged between 1 and 12, the Youth Banking category include products for customers aged between 13 and 17. To be eligible for the Bank of the Year – Tertiary Banking, providers must offer deposit accounts for consumers over the age of 16.
Canstar’s verdict: Why ASB is Bank of the Year – Junior Banking 2018
For the third year running, ASB is the Bank of the Year – Junior Banking.
In 2018, Canstar compared 21 savings accounts from seven providers, for the Bank of the Year – Junior Banking category.
ASB continues to offer multiple benefits for customers aged 12 and younger and have also introduced some additional features this year.
In total, ASB offers 11 different financial subject areas for primary students, almost double the market average of six, according to Canstar research.
ASB now offers additional resources on budgeting and loans.
“As well as comprehensive curriculum content, ASB operates seminars on money, saving and spending, banking, and credit, throughout the year,” Canstar New Zealand general manager Jose George says.
“There are incentives for children to save with ASB, include Clever Kash – a digital piggy bank that allows transfers from a parent’s mobile application, certificates given to regular savers, and the ability to open accounts and deposit savings at participating schools,” Mr George says.
At the time of the award research – 1 April 2018 – ASB’s Savings Plus account was the product leader in the junior saver profile. The savings account offers the highest total rate available, of 2.25%, more than twice the market average of 1.06%, provided the customer does not make any withdrawals.
ASB also offers a Headstart account – with a 1% base rate and no account or transaction fees – for children who prefer to have an account they can make transaction from, as well as grow savings.
Canstar’s verdict: Why Westpac is Bank of the Year – Youth Banking 2018
Also, for the third year in a row, Westpac is the Bank of the Year – Youth Banking.
Canstar has compared 27 savings accounts and 24 transaction accounts, across seven institutions, for the Bank of the Year – Youth Banking category.
Westpac has maintained their market leading approach to youth banking, Canstar New Zealand general manager Jose George says.
But, Westpac has also increased the number of workshops it holds yearly and have also added financial literacy content to its website.
Westpac offers 8 seminar subjects – the largest number in the market – on a range of different topics, including: banking, getting a job, KiwiSaver, credit and savings/spending.
Westpac also offers a range of online tools, such as savings and budgeting calculators, video tutorials and support on twitter and Facebook.
For regular savers who don’t intend on making withdrawals, Westpac’s Online Bonus Saver account offers a total rate of 2.10% – almost double the market average of 1.18% – as long as customers follow the account conditions.
For teenagers who want a transaction account, Westpac has a fee-free electronic account that includes access to a market-leading online banking platform, paired with extensive branch and ATM coverage.
Canstar’s verdict: Why ASB is Bank of the Year – Tertiary Banking 2018
ASB is the first-ever Canstar Bank of the Year – Tertiary banking.
Canstar compared 29 savings accounts, 23 transaction accounts and 17 credit cards across 10 providers, for this award category.
Canstar’s just-launched award recognises an institution’s overall selection of products and services targeted to tertiary students.
“ASB caters for the varying needs of students, in both transaction accounts and savings accounts,” Mr George says.
ASB’s electronic account – Streamline – does not have any account or transaction fees, provided customers bank online.
For students saving towards a goal, or who have money to put aside for the future, the ASB Savings Plus account performs strongly for flexible savers and regular savers.
The Savings Plus Account has no minimum balance requirements. The account pays a base rate of 0.25% on all balances. And, for savers who make no withdrawals per quarter, ASB adds an additional bonus rate of 2.00% to the base rate (total rate = 2.25% and the market average = 1.86%).
The tertiary award category also includes a comparison of credit cards available for students.
ASB’s Visa Light card is the price leader in the low-rate profile, with no annual fee, and a purchase interest rate of 13.05% – considerable lower than the market-average rate of 18.03%.
ASB also offers tertiary benefits, including personal loan discounts, an interest-free overdraft up to $2000, and free McDonald’s fries every day with the use of the visa debit card.
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