Wednesday 28 August 2019
After months of secrecy, neobank 86 400 has publicly revealed details of their soon-to-be-launched transaction and savings accounts - what they’re calling the Pay Account and Save Account.
The Sydney-based neobank, which reportedly soft launched in the last few days, published new information on the two banks accounts on their website, perhaps indicating that a full launch isn’t far away.
According to their website, the 86 400 Pay Account will act as a day-to-day transaction account which allows users to transfer money and make regular purchases with a linked 86 400 Visa debit card or a digital wallet like Apple Pay, Google Pay or Samsung Pay. There are also no monthly fees attached to the account.
Meanwhile the 86 400 Save Account is, you guessed it, a savings account, and one that may well turn heads. While the base rate of 0.40% isn’t much to write home about, when combined with the bonus rate of 2.10% savers will be able to grab a maximum rate of 2.50%.
That would make the Save Account’s maximum rate the joint highest in the Mozo database (as of the time of writing) - level with fellow neobank Up Bank’s Saver Account, as well as BOQ’s Fast Track Saver Account and MyState Bank’s Bonus Saver Account.
86 400 has indicated that there are a few requirements users will need to fulfil to get the maximum 2.50% rate though, including a minimum deposit of $1,000 each month into a 86 400 account.
The rate also only applies on balances up to $100,000, though it’s currently unclear what the interest rate for balances above that cap will be.
The release of these new details come a little over a month since 86 400 announced that they had been granted a full Authorised Deposit-Taking Institution (ADI) licence by the Australian Prudential Regulation Authority (APRA).
A full ADI licence means that 86 400 are licensed to accept unlimited deposits from their customers, and from a customer point of view it means that money held in an 86 400 transaction or savings account (up to $250,000) will be guaranteed under the Federal Government's Deposit Guarantee Scheme.
“For the last two years, we’ve been busy building a smarter alternative to how Australians bank. Today’s news confirms we’ve passed all of the necessary checks and balances required to call ourselves a bank,” said Robert Bell, 86 400 CEO, in July.
“This has been an incredibly thorough process and we’ve had every element of our business stress tested to confirm that we are as robust, secure and safe as any bricks-and-mortar bank. The only thing remaining is to bring 86 400 to market, which we’re now very close to doing.”
Aside from deposits, 86 400 have also already indicated their intention to offer home loans to customers in the not too distant future, with an announcement in April introducing their partnership with mortgage and finance aggregator Vow Financial.
Interested in learning a little bit more about neobanks, including 86 400? Check out Mozo’s comprehensive digital banking and neobanks guide, or catch up with even more news on the latest neobank and banking tech developments over at our dedicated fintech hub.