86 400 to trim savings account rate to 1.60%

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86 400 is the latest bank to announce a hit to savers, with the neobank set to cut the maximum  interest rate on its Save Account from 1.70% to 1.60%. 

Effective tomorrow (4 August), the 10 basis point reduction will be the second rate cut 86 400 has passed on to its savings customers in the past month following a 15 basis point cut back in July.

The change means that the account will comprise a 0.15% base rate and a 1.45% bonus rate, and in order to achieve the maximum 1.60% rate users will need to deposit at least $1,000 per month into either an 86 400 Save Account or Pay Account.

Despite the cut, 86 400’s rate still remains one of the higher ongoing saving account interest rates in the Mozo database and well above our current database average which sits at 0.82% as of 3 August. 

Here are the highest ongoing rates in the Mozo database (taking into account 86 400’s cut tomorrow):

Interest rateMonthly conditions
Westpac - Life (18-29 years old)3.00% (Balances up to $30k)Grow balance with min. 1 deposit, plus 5 transactions using linked Westpac card
Aus Unity - Active Saver1.75% (Balances up to $500k)$250 deposit plus no withdrawals
MyState - Bonus Saver Account1.75% (Balances up to $250k)$20 deposit plus 5 linked debit card transactions
Rabobank - Notice Saver1.70% (Balances up to $250k)Must give 90 days notice to withdraw funds

Neobanks still riding high despite drops

It’s been over four months since the RBA’s double rate cut in March, yet cuts to savings account rates continue to steadily flow in. 

And customers of Australia’s fledgling neobanks haven’t been spared from these reductions, with 86 400, Up, Volt Bank, Xinja having cut their respective savings account rates multiple times over the period. 

In fact, 86 400, Up and Xinja have all reduced rates in the past month.

Interest rate (Feb 2020)Interest rate (Aug 2020)
Volt - Savings Account2.15%1.65%
Xinja - Stash*2.25%1.65%
86 400 - Save Account2.25%1.60%
Up - Saver Account2.25%1.60%

There was a time earlier in the year when the four neobanks had a stranglehold at the top of the Mozo database, and though that’s no longer the case, as the table above shows they are still all offering ongoing rates which sit well above our database average of 0.82%.

 RELATED: ING cuts Savings Maximiser account rate to 1.65%, still ahead of the competition

Ready to find a home for your savings with an account featuring a hot interest rate? Check out some of the great offers in the table below, or head on over to the Mozo savings account comparison table for the latest rates from even more banks.

Compare savings accounts - last updated 15 June 2024

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  • 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.

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  • 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.

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  • PremiumSaver

    5.45% p.a. (for $0 to $250,001)

    1.50% 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.

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  • Mozo Expert Choice Badge
    Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.

    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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^See information about the Mozo Experts Choice Savings Account Awards

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