86 400 has become the latest neobank to throw its savings account onto the chopping block, following the Reserve Bank’s emergency rate cut last month.
Effective today, the neobank will cut rates on its Save Account by 15 basis points, bringing the maximum rate down to 1.85%.
In order to receive that maximum rate, savers must deposit more than $1,000 into either the Pay or Save Account (balances up to $100,000 per Save Account).
This is the second time the neobank has reduced its savings account rate, as almost one month ago, 86 400 cut its rate by 25 basis points from 2.25% to 2.00%.
86 400’s new rate now matches fellow neobank, Up, which also trimmed 15 basis points off its Saver Account last week.
RELATED: Savings account snapshot: All the recent rate changes you’ll want to know about
Back in March, big banks ANZ and NAB also slashed rates on their savings accounts by 35 and 25 basis points, respectively.
“All banks big and small have felt the squeeze following the two RBA rate cuts in March and unfortunately neobanks are no exception,” said Mozo Banking Expert, Peter Marshall.
“We’re in a low interest rate environment at the moment and I expect it to remain this way for some time.”
But despite the news, it’s worth noting that 86 400 still has one of the highest ongoing savings account rates on the market.
The remaining members of the 2.00% club
According to the Mozo database, there are now only two providers offering conditional ongoing rates of 2.00%: MyState Bank and Bank of Queensland.
With the MyState Bank Bonus Saver Account, savers are required to deposit at least $20 into the account and make five debit card transactions, while the Bank of Queensland Fast Track Saver Account asks savers to deposit $1,000 into their transaction account and make five debit card transactions each month*.
So if you’d like to find out how these accounts compare to others in the market, head on over to our savings account comparison tool or get started with the offers below!
*Bank of Queensland has temporarily paused the debit card condition on its Fast Track Saver Account due to COVID-19 until 31 August 2020