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
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Mozo experts choice awards won:
- Kick Start Savings - 2024
High Interest Savings Account
5.60% p.a. (for $0 to $250,001)
4.35% 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.
CompareCompareHigh Interest Savings Account
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.
- Maximum rate
- 5.60% p.a. (for $0 to $250,001)
- standard interest rate
- 4.35% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read reviews and learn more about Rabobank savings accounts
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Savings Accelerator
3.55% p.a. (for $0 to $50,000)
2.85% p.a.(for $0 to $50,000)
Yes up to $250,000
New customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000.
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
CompareCompareSavings Accelerator
Enjoy the flexibility to access your funds with no monthly deposit requirements or lock-in terms. No ING fees to pay. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^
- Maximum rate
- 3.55% p.a. (for $0 to $50,000)
- standard interest rate
- 2.85% p.a.(for $0 to $50,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- New ING personal savings customers receive an introductory bonus 0.70% p.a. variable kick starter rate for the first 4 months on balances up to $500,000. Reverts to variable ongoing rate.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read reviews and learn more about ING savings accounts
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Smart Saver Account
4.50% p.a. (for $0 and over)
0.05% p.a.(for $0 and over)
Yes up to $250,000
Increase account balance by any amount and make no more than two withdrawals
Work towards your savings goals with this account. Earn bonus interest when you grow your balance and make no more than 2 withdrawals each month. Earn a guaranteed standard rate of interest each month on your savings. No monthly account keeping fees to pay. Use the app or internet banking to manage your account 24/7.
CompareCompareSmart Saver Account
Work towards your savings goals with this account. Earn bonus interest when you grow your balance and make no more than 2 withdrawals each month. Earn a guaranteed standard rate of interest each month on your savings. No monthly account keeping fees to pay. Use the app or internet banking to manage your account 24/7.
- Maximum rate
- 4.50% p.a. (for $0 and over)
- standard interest rate
- 0.05% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Increase account balance by any amount (excluding interest) and make no more than two withdrawals in the month
- Access
- BPay, Branch access, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- -
Read reviews and learn more about Newcastle Permanent savings accounts
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MoneyMAX Account
No Current Offer
4.70% p.a.(for $1 and over)
Yes up to $250,000
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
CompareCompareMoneyMAX Account
Unlimited access 24/7 via Banking App, Phone & Internet Banking. Interest is calculated daily and paid monthly. No transaction fees or monthly service fees. No minimum balance or withdrawal restrictions. Online access only.
- Maximum rate
- No Current Offer
- standard interest rate
- 4.70% p.a.(for $1 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- n/a
- Access
- BPay, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Branch access for deposits only.
Read reviews and learn more about Unity Bank savings accounts
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PremiumSaver
5.35% p.a. (for $0 to $250,001)
1.45% p.a.(for $0 and over)
Yes up to $250,000
Increase balance by $200 by the end of each month
Reward yourself with a higher rate for your good savings habits. Rabobanks’s PremiumSaver is simple - receive the maximum rate when you grow your balance by at least $200 each month (T&Cs apply). Plus, your savings help our Aussie farmers produce the food we love to enjoy.
CompareComparePremiumSaver
Reward yourself with a higher rate for your good savings habits. Rabobanks’s PremiumSaver is simple - receive the maximum rate when you grow your balance by at least $200 each month (T&Cs apply). Plus, your savings help our Aussie farmers produce the food we love to enjoy.
- Maximum rate
- 5.35% p.a. (for $0 to $250,001)
- standard interest rate
- 1.45% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Maximum rates apply when your closing balance on the last day of the month is at least $200 more than it was at the beginning of the first day of the month (excluding interest earned).
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account. Must hold and maintain a HISA.
Read reviews and learn more about Rabobank savings accounts
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^See information about the Mozo Experts Choice Savings Account Awards
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