Volt Bank to cut savings account rate by 0.20%

woman-looking-at-reduced-volt-savings-rate-on-phone

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

Want to see how your own savings rates stacks up against the competition? Compare it to rates from a wide range of banks using our savings account comparison table, or check out some of the latest offers below.

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Last updated 25 July 2024 Important disclosures
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    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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    Yes up to $250,000

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    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.

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    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

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  • Bonus Saver Account

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

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

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^See information about the Mozo Experts Choice Savings Account Awards

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