Image source: Xinja
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.
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This maximum interest rate is available on amounts up to $150,000 - a maximum limit that has been decreased from $245,000.
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 Savings.com.au.
“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:
- Up Bank slashed its Up Saver interest rate by 50 basis points to 1.10% p.a;
- ING cut the interest rate on its Savings Maximiser account to 1.50% p.a from 1.65% p.a;
- Neobank Volt, still in beta, cut the total interest rate on its savings account by 20 basis points from 1.65% p.a. to 1.45% p.a;
- The CUA eSaver Reward account was cut to a maximum rate of 1.45% p.a. after having a total rate of 1.70% p.a in April.
- RAMS, which once boasted one of the highest savings account interest rates around, has now been cut to a total 0.90% p.a
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.
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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