Dream Fund

The Dream Fund is a digital access-only online savings account offering a 0.01% p.a. basic interest rate, although with its higher bonus rate this reaches 0.55% p.a.  The only condition to earn this additional bonus interest is that the balance of your account on the last day of the month is higher than the month’s opening balance.  There’s no minimum deposit requirement and no transaction fees.  The minimum age to open a Dream Fund account is 13.

An unusual feature of this everyday savings account is that it offers the ability to complete banking transactions such as direct debits, direct credits, BPAY and Osko payments, plus free Bank@Post withdrawals and deposits.  In this sense, it could be regarded as a hybrid type of savings account which also has characteristics of a transaction account.  However, since it’s an online savings account, withdrawals and deposits at People’s Choice branches aren’t permitted.

 Bonus Saver Account 

This is a so-called ‘locked’ savings account which earns interest as long as no withdrawals are made from the account.  If money is withdrawn, any interest for that calendar month is lost.  Another condition of earning the top interest rate on the Bonus Saver account is depositing at least $50 into the account per month.  The base interest rate offered is 0.01% p.a., with a bonus interest rate of 0.54% p.a., adding up to a total of 0.55% p.a.

Just like the Dream Fund, this account also offers unlimited free BPAY payments and online and internet banking transfers including Osko payments.  One free branch withdrawal is permitted per month, otherwise a $3 withdrawal fee is charged.  For direct debits, one free debit per month is permitted, after which a $1.25 fee is charged. No monthly fees are charged on this account.

 Young Saver Account

This savings account is available to all young people and children aged under 18 years.  It offers a basic 0.10% p.a. interest rate plus a generous bonus interest rate of 1.15% p.a. if no withdrawals are made throughout the month, resulting in a total interest rate of 1.25% p.a. There’s also a requirement to deposit at least $5 a month to earn the bonus interest. 

There’s no minimum opening balance required, as well as having free BPAY and internet and phone transfers.  However, just like the Bonus Saver account, there’s a $3 fee if more than one over-the-counter withdrawal is made and a $1.25 fee for more than one direct debit from the account (except payments to People’s Choice CGU Insurance).

 Business Online Account

This online-only business savings account is another hybrid account offering interest on savings, but the convenience of a transaction account.  It offers a respectable 0.35% p.a. interest rate, but also allows unlimited free BPAY and Osko payments, direct debits and credits.  The minimum balance required to earn interest is just $1 and there are no account-keeping fees.  Access to the MYOB accounting tools is included as part of the account.

This account is open to sole traders, business partnerships, companies, trusts, and self-managed superannuation funds (SMSF).  However, to set up a business superannuation fund membership, at least one trustee or company trust director needs to have been a People’s Choice member for 12 months or more prior to applying for the company account.

Personal Term Investments

 Term deposits, which People’s Choice calls personal term investments, are available for a wide range of terms, starting from two months up to five years.  There is a $5,000 minimum term deposit.  People’s Choice allows young people to open a term deposit from the age of 13 years, whereas many competitors have a minimum age limit of 18 years for term deposits.  The rates on offer as of June 2022 are:

• for two months: 0.10% p.a.
• for three months: 0.30% p.a.
• for four to five months: 0.20% p.a.
• for six months: 0.40% p.a.
• for seven months: 0.80% p.a.
• for eight months: 0.30% p.a.
• for nine to 11 months: 0.50% p.a.
• for one year: 1.00% p.a.
• for 2 years: 1.20% p.a.
• for 3 years: 1.00% p.a.
• for four years: 1.45% p.a.
• for five years: 1.50% p.a.

Term investments from two to 11 months in length must have interest paid at maturity, while terms of 12 months or more can be paid annually or monthly.  These interest rates put People’s Choice on the lower end of the interest rates offered for term deposits by financial institutions in Australia.  For example, in comparison, Judo Bank is offering 1.75% p.a. for a six-month term deposit, and Macquarie Bank is offering 1.90% over the same term.