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 rate||Monthly 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 Maximiser||1.80% (Balances up to $100k)||Min. $1k deposit plus 5 purchases with a linked ING debit/credit card|
|Australian Unity - Active Saver||1.75% (Balances up to $500k)||Min. $250 deposit plus no withdrawals|
|MyState Bank - Bonus Saver Account||1.75% (Balances up to $250k)||Min. $20 deposit plus 5 linked debit card transactions|
|86 400 - Save Account||1.70% (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.
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 November 21, 2020
- MyState BankMyState Bank
Bonus Saver Account
- Bank of QueenslandBank of Queensland
Fast Track Saver Account
^See information about the Mozo Experts Choice Savings Accounts Awards
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