Xinja, which turned one year old just a few days ago, has returned almost all (99.97%) of its $252 million in cash deposits to its 37,884 customers. 

This follows its decision to pull the plug on its bank account products and hand in its banking license in December last year, and according to the Australian Prudential Regulation Authority (APRA), this is the first time an Australian ADI had undertaken a return of deposits to its customers. 

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Rates
Features
Conditions
Other
Provider
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Disclosure

Savings Account

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
More details
Disclosure
400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure

Savings Accelerator

  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
More details
Disclosure
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Earn up to 5.20% pa by depositing $1,000 in the previous month
  • No account fees
  • Easy access to your money
Disclosure

AMP Saver Account

  • Earn up to 5.20% pa by depositing $1,000 in the previous month
  • No account fees
  • Easy access to your money
More details
Disclosure
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
Disclosure

Savings Maximiser

  • Deposit at least $1,000+ each month from an external source
  • Make 5 or more eligible transactions
  • Grow your savings balance each month
More details
Disclosure
  • Earn up to 5.20% pa by depositing $1,000 in the previous month
  • No account fees
  • Easy access to your money

More details
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of October 23, 2024. View disclaimer.

Important Information and Comparison Rate Warning

Xinja offered some of the highest deposit rates in Australia at the time of its launch, but failed to provide a home loan product to earn interest on these deposits, which left it bleeding money. 

No comment has been left by a Xinja spokesperson - CEO Eric Wilson has been hard to reach since the announcement - but it did say in a note on its website today that the remaining $65,000 (0.03%) of deposits that has not yet been claimed will be transferred to a transaction account created for each customer at NAB (National Australia Bank), with APRA's approval. 

Both Xinja and NAB have contacted affected customers to advise them of the transfer, and APRA will closely monitor the remaining amounts. 

Xinja customers with deposits sent to NAB can leave their funds there or transfer them to another bank of their choice, and should contact NAB at nab.com.au/contact-us. 

Xinja: A timeline 

Despite the failure of Xinja, CEO at FinTech Australia Rebecca Schot-Guppy told Savings.com.au in December that Australia's neobank sector is still strong. 

"Up, 86400 and Revolut continue to add new products and gain market traction. When Loot pulled out of banking in the UK, it served to strengthen the rest of its neo-banking sector," Ms Schot-Guppy said. 

"We expect to see something similar in Australia."

Photo by Renee Fisher on Unsplash