Neobank Xinja has completed its return of all customer deposits, ahead of returning its banking license in a few weeks' time.
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.
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
- January: Xinja launches new 2.25% p.a savings account
- January: Big four bank customers flocking to Xinja
- February: Xinja hits $200m in deposits
- March: Xinja pauses bonus interest rate for new customers
- May: Xinja cuts Stash savings account rate to 1.80% p.a
- July: Xinja to expand product suite with US share trading
- October: Xinja to cut savings rate to 1.50% p.a
- November: Xinja to limit its maximum interest rate to $50,000
- 14th December: Xinja hands back banking license
- 15th/16th December: final Stash interest payment made and Stash accounts no longer earn interest
- 16th December: instant top up no longer available
- 23rd December: Stash accounts closed – inbound payments of any kind no longer accepted
- 30th December: Xinja starts to automatically close all bank accounts that are empty
- 15th January: cards and payment facilities no longer working from this date
- 19th January: Deposit transfers completed
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."