86 400 to trim savings account rate to 1.60%
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 rate||Monthly 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 Saver||1.75% (Balances up to $500k)||$250 deposit plus no withdrawals|
|MyState - Bonus Saver Account||1.75% (Balances up to $250k)||$20 deposit plus 5 linked debit card transactions|
|Rabobank - Notice Saver||1.70% (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 Account||2.15%||1.65%|
|Xinja - Stash*||2.25%||1.65%|
|86 400 - Save Account||2.25%||1.60%|
|Up - Saver Account||2.25%||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%.
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 - page last updated September 22, 2020
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