Neobanks 86 400 and Xinja announce further savings rate cuts


The downward spiral in savings account rates continues to show no signs of letting up with customers of neobanks 86 400 and Xinja set to be the latest rate cut recipients.

86 400 (25 basis points) and Xinja (15 basis points) will not only be reducing the interest rates on their respective savings accounts in the coming days, both banks have also announced changes to the balances they’ll pay interest on.

These latest moves come just a week after fellow digital bank Up alerted customers that it would be slashing its own savings rate by 50 basis points from November.

While the cuts will be yet another blow to savers who have witnessed their returns diminish again and again in recent years, Australia’s neobanks are still offering rates well above the average rate in the Mozo database which is currently just 0.59%.

Here are the details of the latest changes from 86 400 and Xinja. 

86 400 Save Account

  • Maximum rate cut from 1.60% to 1.35%
  • Maximum bonus rate balance to drop to $50k
  • New savings account functionality

Effective tomorrow (13 October) the maximum interest rate available on 86 400’s Save Account will drop by 25 basis points to 1.35%, which on a balance of $10,000 would equate to a loss of $25 in interest over a year.

That rate is made up of a 0.10% base rate and 1.25% bonus rate, and in order to activate the bonus rate, savers will need to make a monthly deposit of at least $1,000 into a Save or Pay Account.

The digital bank also announced that it will be further scaling back the maximum balance customers can earn the highest rate on. From 1 November, 86 400 will only pay the bonus rate on balances up to $50,000 - down from the current maximum balance of $100,000.

In more positive news for customers, 86 400 recently beefed up the functionality of its Save Account with some new features. Users now have the ability to use the account like a bank account by making transfers to external accounts like paying a friend via PayID or using BPAY to pay rent.

Xinja Stash Account

  • Account still unavailable to new applicants
  • Maximum rate cut from 1.65% to 1.50%
  • Maximum bonus rate balance to drop to $150k

While Xinja’s Stash Account still remains unavailable to new customers, existing Xinja savers will see the maximum rate drop by 15 basis points to 1.50% from Wednesday (14 October) - a change which will see customers lose out on $15 in interest a year on a balance of $10,000.

This is the second time Xinja has cut its savings rate in just over two months after passing on a 15 basis point cut back in July, but this time the neobank also announced a reduction to its maximum balance cap.

As of Wednesday, savers will be able to earn interest on a maximum balance of $150,000 - down from the present cap of $245,000.

RELATED: Xinja unveils share trading platform Dabble

Is your current savings account no longer up to scratch? Check out some of the hot savings account offers in the table below, or compare the latest rates for yourself using our handy savings account comparison table.

Compare savings accounts - last updated 30 May 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.

  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend, Bills or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

    0% p.a.(for $0 and over)

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

  • Bonus Saver Account

    5.00% p.a. (for $0 to $250,000)

    0.05% p.a.(for $0 and over)

    Yes up to $250,000

    Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Glide transaction account.

    Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.


^See information about the Mozo Experts Choice Savings Account Awards

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