After months of anticipation, Australian neobank Volt Bank has released the first substantive piece of information about one of its soon-to-be-released banking products: a savings account interest rate.
According to the Volt Bank website, the digital bank will offer a maximum ongoing interest rate of 2.15% for savings account balances up to $245,000.
The kicker? There are zero strings attached.
In Volt’s own words there are no, “...hoops, hurdles, tricks or conditions designed to stop you getting that rate.”
“Banking needs to be done in a better way. Intro savings rates need to go; so do the catches that stop too many customers getting the higher headline rate. Why can't interest rates be transparent....and competitive? They can! Bring on the Volt,” said Steve Weston, Co-founder and CEO of Volt.
So how does Volt’s newly announced rate stack up? Well according to Mozo Banking Expert, Peter Marshall, it’s certainly one to watch.
“Volt’s rate really is fantastic and it just blows everyone else out of the water. In fact, it’s better than some of the conditional rates that are now being offered by previous market darlings such as UBank,” he said.
“It’s a real game changer and if they hold that kind of positioning with their rate I don’t think they’ll have any trouble at all attracting a heap of business.”
As an ongoing base rate with no conditions attached Volt’s 2.15% interest rate is head and shoulders about the pack - sitting a full 0.50% higher than the second highest savings account base rate offer in the Mozo database.
It’s also a staggering 1.48% above the current average base rate in the Mozo database which, at the time of writing, is just 0.67%.
And as Marshall alluded to, it’s even up there with the most competitive ongoing bonus savings account rates around.
Volt’s 2.15% rate would place it alongside the Bank of Queensland Fast Track Saver Account as the equal third highest ongoing rate in the Mozo database and only slightly below the 2.25% rates currently offered by fellow neobanks Up and 86 400.
The difference here is that Volt has stated that its rate will come with zero conditions, whereas the likes of Up, 86 400 and BOQ all require savers to meet minimum requirements, such as a monthly deposit or number of card transactions, in order to grab the maximum rate.
Is Volt about to open its doors?
Unfortunately for savers looking for a new place to park their cash, Volt hasn’t actually made their savings account open to the public - at least, not quite yet.
The digital bank is still in the process of beta testing, though interested parties are able to sign up to be part of the beta testing via the Volt website.
However, the release of the savings account rate and other new information may be a sign that Volt is almost ready to open its doors.
“It would make sense that, now that they’ve released this headline-grabbing rate, that they’d want to follow that up reasonably soon with other products,” said Marshall.
“The information they’ve just released talks about addressing the spending side of the equation and they seem to have a card design ready to go, so I’d say that it won’t be too long before we see a savings account and bank account available to the public.”
*Bonus interest only applies when you deposit $2,000 into your Go Account and make 5 debit card purchases, direct debit or BPAY payments in the previous month. If you are between 18 and 25 you need to deposit $1,000 and fulfil the other criteria.