Stash slash: Xinja cuts savings account rate to 1.65%

woman-looking-at-xinja-savings-account-on-smartphone

Xinja Bank has cut the interest rate on its Stash savings account once again, bringing the new maximum rate available on the account to 1.65%.

Coming into effect this morning, the 15 basis point reduction is the second cut Xinja has made to the account’s interest rate in recent months, which was as high as 2.25% back in May.

On a savings balance of $10,000, the cut would equate to a $16 reduction in interest over a year or $79 over three years, assuming no additional contributions are made.

The rate drop will only affect existing Xinja account holders though as the Stash account remains temporarily unavailable to new customers.

The neobank ‘paused’ new applications for the account back in March, citing ‘unprecedented demand’ for the account as well as consecutive RBA rate reductions as the reasons for the temporary closure.

Savings rates continue slide

Unfortunately for Australian savers, Xinja’s move is hardly out of the ordinary.

In fact, according to figures from the Mozo database, the average ongoing savings account interest rate is now hovering around just 0.70% and the vast majority of accounts have been hit with rate reductions in the past few months.

However, a sizeable spread still remains between the highest and lowest rates on the market - perhaps providing enough of an incentive for savers still looking to squeeze the most out of their savings balance.

 For context, here are the five highest ongoing savings account rates in the Mozo database as of July 29, 2020. For more information about any of the accounts, click on the linked review.

Interest rateMonthly conditions
Westpac - Life (18 - 29 years old)*3.00% (Balances up to $30k)Grow balance with at least 1 deposit, plus 5 transactions with linked Westpac card
ING - Savings Maximiser1.80% (Balances up to $100k)Min. $1k deposit plus 5 purchases with a linked ING debit/credit card
Australian Unity - Active Saver1.75% (Balances up to $500k)Min. $250 deposit plus no withdrawals
MyState Bank - Bonus Saver Account1.75% (Balances up to $250k)Min. $20 deposit plus 5 linked debit card transactions
86 400 - Save Account1.70% (Balances up to $300k)Min. $1k deposit

*As the name implies, Westpac’s Life (18-29 years old) account is only available to younger Australians meeting the monthly conditions outlined above.

 RELATED: Xinja unveils share trading platform Dabble

Realised that you could be getting a more generous rate on your savings? Check out some of the hottest rates around in the table below, or head on over to our dedicated savings account comparison table for even more offers.

Compare savings accounts - last updated 29 May 2024

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

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account. No Account keeping fees. No minimum balance. Support Aussie farmers with every dollar you save.

    Compare
    Details
  • 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.

    Compare
    Details
  • 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.

    Compare
    Details
  • Mozo Expert Choice Badge
    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.

    Compare
    Details
  • Reward Saver Account

    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.

    Compare
    Details

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.