Volt Bank to cut savings account rate by 0.20%

Neobank Volt has announced that it will be further reducing the interest rate available on its savings account by 20 basis points.

Coming into effect next Wednesday, the change means that Volt Savings Account customers will see their ongoing rate drop from 1.65% to 1.45% which is available on balances up to $245,000.

In a release to account holders, Volt Bank cited falling interest rates ‘across the board’ and the need to remain ‘sustainable and competitive’ as reasons for the latest reduction.

This will be the third cut the neobank has passed on since launching earlier this year, meaning its savings rate will have dropped from 2.15% to 1.45% over the period.

• March 14: Rate cut from 2.15% to 1.90% 

• March 31: Rate cut from 1.90% to 1.65% 

• September 16: Rate cut from 1.65% to 1.45%

However, Volt is by no means the only bank to have cut its savings account rate in recent months. 

Since March the average ongoing savings rate in the Mozo database has dropped by 33 basis points to just 0.64%, with the majority of banks - including fellow digital banks 86 400, Up and Xinja - cutting rates multiple times.

 In fact, a recent analysis of savings products being tracked in the Mozo database revealed that between March 1 and August 31, over 600 cuts were made to savings account interest rates.

So, while Volt’s latest announcement is hardly likely to be greeted with joy by customers, its new rate will still be double the average ongoing rate and also among the highest ‘no strings attached’ rates around.

RELATED: Your savings in 2020: Death by a thousand rate cuts

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