Neobanks Xinja and Volt have launched savings accounts, giving consumers more choices of at-call accounts offering rates higher than 2 per cent. Meanwhile, Macquarie Bank has increased the four-month introductory rate on its Macquarie Savings Account to 2.65 per cent.
Xinja, which was granted a banking license last September, has matched its rival neobanks, 86 400 and Up, with an offer of 2.25 per cent. These banks are leading the market for ongoing interest rates.
What sets Xinja’s offer apart is that the 2.25 per cent is an ongoing rate with no minimum monthly deposit or other requirements.
To earn 2.25 per cent on Up Savers, customers must make five or more purchases each month using their Up Everyday Account. There are no deposit requirements and withdrawals are unlimited. The base rate is 0.5 per cent.
And to earn 2.25 per cent on 86 400 Save, customers must deposit $1000 or more each month. The base rate is 0.4 per cent.
Volt is offering 2.15 per cent. Like Xinja, it is an ongoing rate with no deposit or other monthly requirements.
Volt has had its product in “beta” (test) mode since last year but comparison site Canstar reported on Friday that it has started onboarding customers from a 40,000 strong waiting list.
Compared with the rates being offered by the neobanks, Canstar says the average bonus saver rate is 1.49 per cent.
Apart from Macquarie’s intro rate, the top introductory deposit rate in the market is 2.5 per cent, which both Heritage Bank and Rabobank are offering for four months.
Meanwhile, other banks keep cutting their rates. Canstar reported last week that NAB cut the introductory rate on its iSaver account by 15 basis points to 1.55 per cent (the base rate is 11 bps) and cut the bonus rate on its Reward Saver Account by 11 bps to 1.5 per cent.
Among the other big banks, ANZ is offering 1.6 per cent on its Online Saver account for three months, Commonwealth Bank is offering 1.65 per cent on its NetBank Saver account for five months and Westpac is offering 1.66 per cent on its eSaver account for five months.