Neobank 86 400 joins the ranks of banks cutting interest rates on savings accounts

Recently launched neobank 86 400, has become the latest in a whole host of banks to cut the interest rate on its bonus savings account. 

Just over a week after the Reserve Bank of Australia cut the official cash rate by 0.25%, 86 400, which launched to the public in September, announced its decision to pass on the full cut to its Save account.

This brings the maximum interest to be earnt on this bonus savings account down from 2.50% to 2.25%. The base rate will remain the same at 0.40% with the bonus interest rate dropping from 2.10% to 1.85%.

This news comes not long after fellow digital bank, Up, also announced its decision to drop the maximum interest rate to be gained on its Saver account from 2.50% to 2.25%. 

In fact, in the week following the RBA’s cut numerous banks with popular savings accounts, including ING, ME Bank and UBank announced decisions to slash rates on savings accounts.

RELATED ARTICLE: AMP, Bendigo, BOQ, CUA, NAB, Suncorp and Up Bank latest to drop rates on big name savings accounts

Despite this rate drop, savers might be cheered to know that 86 400’s Save account is still well above the average 1.71%* maximum interest rate for a bonus savings account (on a balance of $10,000). With the base rate also standing squarely above the average base rate of 0.22%*.

Plus the neobank’s bonus savings account currently sits joint 2nd with RAMS,  Australian Unity and Up in the Mozo database for bonus savings accounts, with MyState Bank’s Bonus Saver Account currently taking out the top position with a maximum interest rate of 2.50%.

So despite the not particularly great news, 86 400 still might be worth sticking to or checking out if you’re thinking of opening a new savings account.

Of course to achieve the maximum interest rate of 2.25%, you will still have to deposit at least $1,000 into any of your 86 400 bank accounts once a month (available on balances up to $100,000).

Now if this flurry of cuts to savings accounts has sent you into a tailspin and you’re thinking of looking elsewhere for a better deal, why not take a look at the accounts below. Or head to Mozo’s savings account comparison tool to see if there’s any way you could be earning a higher rate of interest on your hard earned stash of savings.

*Average figure taken from the Mozo database, correct as of Monday 14th October, 2019.

Compare bonus saver accounts - last updated 16 April 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

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    Bonus rate for the first 4 months from account opening

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    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 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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    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

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    5.25% p.a. (for $0 to $1,000,000)

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

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    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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^See information about the Mozo Experts Choice Savings Account Awards

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