UPDATE 28/04/21: Australia's prudential regulator APRA has just granted approval to NAB to hold a 100% stake in 86 400, meaning the purchase will go ahead subject to court approval. 


The $220 million purchase of the neobank, announced at the end of January, was subject to approval from the Australian Competition and Consumer Commission (ACCC).

ACCC chairman Rod Sims said the sale of 86 400 was unlikely to lessen competition in the banking sector, but would continue to scrutinise proposed acquisitions by the major banks. 

“Market feedback suggested that while 86 400 is innovative, particularly in reducing the time and effort in completing home loan applications, there are a number of other businesses with similar offerings or the ability to replicate them," Mr Sims said.

"These other competitors continue to bring a similar disruptive influence to the market. 

“Supporting our decision is that we have seen several banks and non-bank lenders outside the big four invest heavily in their technology and service offering to improve user experience.”


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

Update resultsUpdate
BankSavings AccountBase Interest Rate Max Interest Rate Total Interest Earned Introductory Term Minimum Amount Maximum Amount Minimum Monthly Deposit Minimum Opening Deposit ATM Access Joint Application TagsFeaturesLinkCompare
4.40% p.a.
5.75% p.a.
Intro rate for 4 months
then 4.40% p.a.
$980
4 months
$0
$250,000
$0
$0
Featured
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
0.55% p.a.
Bonus rate of 4.95%
Conditions apply.
5.50% p.a.
$1,128
$0
$100,000
$1,000
$0
1.20% p.a.
Bonus rate of 4.20%
Conditions apply.
5.40% p.a.
$1,107
$0
$250,000
$1,000
$0
  • Earn up to 5.40% pa by depositing $1,000 in the previous month
  • No account fees
  • Easy access to your money
4.75% p.a.
5.35% p.a.
Intro rate for 4 months
then 4.75% p.a.
$1,001
4 months
$0
$249,999
$0
$0
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
0.50% p.a.
Bonus rate of 4.85%
Conditions apply.
5.35% p.a.
$1,097
$1
$50,000
$500
$1
  • Maximum Age - 24
0.10% p.a.
Bonus rate of 5.00%
Conditions apply.
5.10% p.a.
$1,044
$0
$250,000
$200
$0
No monthly fees
  • Download the App to open your account
  • Get better visibility of your spending within App!
  • Deposit $200 per month to activate bonus interest
0.05% p.a.
Bonus rate of 4.95%
Conditions apply.
5.00% p.a.
$1,023
$1
$250,000
$20
$0
  • No fees or penalties for withdrawing money
  • Savings guaranteed up to $250,000
  • Maximise your savings and reach your goals faster with Auto-Savings
0.05% p.a.
Bonus rate of 5.45%
Conditions apply.
5.50% p.a.
$1,128
$0
$50,000
$1,000
$0
For customers aged 14-35 years
0.05% p.a.
Bonus rate of 5.30%
Conditions apply.
5.35% p.a.
$1,097
$0
$250,000
$1,000
$0
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 . View disclaimer.

NAB plans to merge 86 400 with its subsidiary UBank, with the two set to operate independently until the finalisation of the purchase in the coming months. 

UBank chief executive Philippa Watson said the acquisition would allow the businesses to deliver a market-leading digital experience. 

“For UBank, the proposed acquisition is part of our commitment to delivering exceptional banking services and experiences to our customers,” Ms Watson said.

“We are pleased with the ACCC’s decision and look forward to our continued engagement with regulators as we progress towards completion of the transaction.”

Further regulatory approvals are required before the sale is made final, as well as approval from the Federal Court. 

It's not yet known whether the 86 400 brand will remain after the merger, nor what savings account rate 86 400 customers will receive. 

Speaking to Savings.com.au shortly after the purchase was announced, 86 400 chief executive Robert Bell said Australians could expect even greater things from the lender. 

"We’ll continue to have competitive rates and fees, but with even greater scale, enabling us to help even more Australians take control of their money," Mr Bell told Savings.com.au.

"While we are still working through some specifics such as the combined business name, our intent is for the look, feel and experience to reflect the best of both businesses."

The neobank struggle 

It's been a challenging 12 months for the neobank sector, with Xinja's infamous collapse, Volt Bank not yet launching a public product, and Bendigo and Adelaide Bank subsidiary Up Bank yet to launch mortgages. 

Judo Bank is the notable exception, hitting $1 billion in customer deposits and a loan book of $2.6 billion at the end of 2020, although it prefers to not be called a neobank. 

Senior industry analyst at IBISWorld Yin Yeoh noted in a report that neobanks could not survive without loan products. 

"To remain in the market, a neobank has to be profitable. In order to be profitable, these banks have to launch loan products that are profitable, including personal loans [and] mortgages," Ms Yeoh said.

Image source: Twitter





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