Savers flee the low rates of the big banks
Announcement posted by Infochoice 03 Feb 2020
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
| Institution Title
| Product Title
| Base Rate <$1,000
| Max Rate <$1000
| Intro period (months)
|
| Bank of Queensland | Fast Track Starter Account (for 14-24 years old) | 0.35 | 3.15 |
|
| Macquarie Bank | Macquarie Savings Account | 0.35 | 2.65 | 4 |
| Heritage Bank | Online Saver | 1.1 | 2.5 | 4 |
| Rabobank | High Interest Savings Account | 1.05 | 2.5 | 4 |
| AMP | AMP Saver Account | 1.4 | 2.36 | 4 |
| Greater Bank Limited | Life Saver | 2.35 | 2.35 |
|
| HSBC | HSBC Serious Saver | 0.45 | 2.35 | 4 |
| Citi | Citi Online Saver | 0.85 | 2.3 | 4 |
| Up | Up Saver Account | 0.5 | 2.25 |
|
| Xinja Bank | Stash account | 2.25 | 2.25 |
|
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 jason.bryce@infochoice.com.au
For more comments, please contact: Vadim Taube, Chief Executive on 0403 580 794
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.
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• 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.