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.
Need somewhere to store cash and earn interest? The table below features introductory and ongoing savings accounts with some of the highest interest rates on the market.
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 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.
[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.
Latest Articles
- Would credit regulation kill buy now, pay later platforms?
- Why fixed rate home loans may be dangerous
- Hydrogen cars - the new ‘green’ fuel source?
- Travel bubble, discount flights boosting confidence and spending already
- Properties are flying off the market at record speeds
Latest News
Australians invest $545 million in Raiz during COVID
April 08, 2021
Australians want green energy but price is still king
April 07, 2021
Bitten by the micro-investing bug: The Raiz craze
April 01, 2021
ACCC approves NAB's purchase of neobank 86 400
March 30, 2021
JobKeeper has ended: How to manage your finances
March 29, 2021
Get free insights & tips monthly
By subscribing you agree to the Savings Privacy Policy