Stash slash: Xinja cuts savings account rate to 1.65%

By Tom Watson ·
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 - rates updated daily

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.

  • 3.00% p.a. (for $0 to $30,000)

    0.40% p.a.(for $0 and over)

    Yesup to $250,000

    Make 5 transactions/month on linked Westpac Choice account and min 1 deposit and higher balance than at the beginning of the month in Life savings account.

    Details
  • 2.10% p.a. (for $0 to $1,000,000)

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

    Yesup to $250,000

    No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% bonus rate after*

    Details
  • 1.55% p.a. (for $0 to $500,000)

    0.35% p.a.(for $0 and over)

    Yesup to $250,000

    Bonus rate for the first 4 months from account opening

    Details
  • 1.25% p.a. (for $0 to $250,000)

    0.01% p.a.(for $0 to $5,000,000)

    Yesup to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Details
  • mozo-experts-choice-2020

    1.65% p.a. (for $1 to $250,000)

    0.20% p.a.(for $1 and over)

    Yesup to $250,000

    Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account. (This second requirement has been paused until 31 August 2020).

    Details

^See information about the Mozo Experts Choice Savings Accounts Awards

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Tom Watson
Tom Watson
Finance journalist

Tom Watson is a financial journalist at Mozo, specialising in fintech, property and business banking. Whether it’s reporting on banking trends or uncovering the latest product innovations, Tom’s mission is to keep our readers up to date with breaking Australian financial news. His work is often sourced in the media and across social media channels. Tom has a degree in Journalism from the University of Technology, Sydney.