Game changing new savings account has no base /max rate rules

MEDIA RELEASE
Monday 3 February 2020

  • Game changing new savings account has no base /max rate rules
  • Savers moving away from big four to find better rates

New figures released by the Australian Prudential Regulatory Authority show that neobanks and other institutions are attracting savers fleeing the low savings account rates of the major banks.

Total retail bank deposits in Australia stood at $929.7 billion in December 2019, up 6.1% over 12 months. All four big banks grew their deposit book by less than system growth while some neobanks experienced double-digit growth rates of new deposits into their high interest savings products.

In 2019, Commonwealth Bank’s household deposit book grew 0.8% to $264.1 billion. Westpac’s deposits grew 1.1% to $217.1 billion. ANZ Bank’s by 3.5% to $123.3 billion and National Australia Bank’s by 2.5% to $134 billion.

Term deposit specialist, Judo Bank, claimed the biggest savings market share among the neobanks in 2019 with $345 million of household deposits in December, more than three times the value of deposits it held in October – $105 million.

Neobank 86 400 had $99 million of household deposits in December, double the deposits it held in October.

Xinja Stash account has no minimum deposits required

Neobank Xinja Bank was granted a banking license by APRA in September 2019 and has launched the Xinja Stash Account which is currently paying 2.25 per cent per annum on balances up to $245K with no strings attached.

Unlike the savings accounts on offer from all the major banks, Xinja’s Stash account has no introductory period and no minimum deposits or payments required to get a ‘bonus’ rate.

“The Xinja Stash account is a gamechanger in the savings account market,” said Vadim Taube, chief executive of leading Australian financial comparison website InfoChoice.com.au.

“Aussies who are sick and tired of seeing their money earn almost no interest because they can’t meet the rules around the bonus rate every month will be very interested in the Xinja Stash account.

“And anyone who doesn’t want to see their money lose value over time because they are earning less than the rate of inflation needs to compare their rate with some of the leading rates in the market now,” said Mr Taube.

“The best savings account rates are well over 2% per annum while inflation is currently 1.7% pa.”

Xinja Bank was granted a banking license by APRA in September.

InfoChoice’s top ten at-call savings account rates (3 February 2020) for balances under $1,000

Compare savings accounts and term deposits at InfoChoice.

Go straight to the latest rates information from individual banks and other institutions here.

For more information on Savings account rates, data and commentary, please contact:

Jason Bryce, Media Manager on 0428 777 727 [email protected]

For more comments, please contact: Vadim Taube, Chief Executive on 0403 580 794

InfoChoice compares financial products from 145 banks, credit unions, authorised deposit-taking institutions, non-bank lenders and other financial product providers in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.

Comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan

InfoChoice is a leading Australian comparison website for retail banking and personal finance products. We’ve been helping Aussies find great offers on credit cards, home loans, savings accounts, term deposits, personal loans and car loans for over 25 years. Our mission is to help consumers make an informed purchasing by bringing together the most comprehensive list of financial products on the market today.

At InfoChoice, we strive to be:

•           Comprehensive. We compare more than 3500 individual products from 145 providers within Australia to offer you the best value.

•           Informative. We know how important it is for you to crunch the numbers before buying. Our calculators help you understand the cost of different products over the long term and show you the potential savings.

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