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.
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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.