Xinja to cut savings rate to 1.50% p.a

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on October 08, 2020
Xinja to cut savings rate to 1.50% p.a

Image source: Xinja 

Neobank Xinja is the latest bank to announce an interest rate cut, slashing its 'Stash' interest rate by 15 basis points next week.

In a note sent to customers, Xinja announced it would cut the total interest rate from 1.65% to 1.50% next Wednesday 14 October. 

Xinja does not have any bonus interest rate requirements, so the 1.50% p.a is still available for all existing customers, but not new ones at the moment

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          BU Savings Account

            Rates based on a savings balance of $10,000. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions and for any applicable fees and charges. Rates correct as of June 29, 2022. View disclaimer.

            This maximum interest rate is available on amounts up to $150,000 - a maximum limit that has been decreased from $245,000.

            Rival neobank 86 400 also cut its maximum deposit limit in half less than a month ago. 

            Xinja last cut its interest rate to 1.65% p.a from 1.80% p.a in July. Prior to March 2020, the most recent RBA rate cut, it had an interest rate of 2.25% p.a.

            Xinja Bank CEO and Founder Eric Wilson said Xinja's rate remains competitive. 

            "We are cutting the rate in line with the market, as we have done before, and just as our competitors have in recent weeks. We held out as long as we could," Mr Wilson told 

            “It's still a competitive rate at 1.50%, particularly considering there are no strings - like minimum deposit or payment accounts, or holding a certain amount in the account.

            “It's the same rate for everyone."

            Xinja just the latest bank to cut interest rates

            Xinja isn't alone in cutting savings account interest rates lately. 

            In recent weeks:

            Major banks Westpac and Commonwealth Bank also made 15 and 5 basis point cuts to their savings account rates respectively, with these products now offering interest rates well below the 1.00% p.a. barrier. 

            [Read: Westpac to offer 3% savings rate to under-30s]

            This latest change could be another sign the Reserve Bank could be cutting the cash rate again next month, as Xinja's change is the same as the anticipated cut: 15 basis points. 

            Economists from NAB, Westpac and 14 of 24 Bloomberg-polled analysts all expect the RBA to cut the cash rate by 15 basis points in November.

            However, Mr Wilson said Xinja's upcoming cut has nothing to do with any potential future RBA changes. 

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            William Jolly joined as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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