Australian neobank Xinja is attempting to shake up the domestic retail banking market with the release of a new savings account with “no introductory period, no minimum deposit and no mandatory monthly top-up”—and a 2.25% ongoing interest rate.
Xinja, which was granted a full bank licence in September 2019, said the new Stash savings account will help customers put aside funds they want to save and reward them for making good financial decisions.
Founder and chief executive Eric Wilson said: “We’re offering our customers the best ongoing rate in the market. True to Xinja’s ethos, there’s no nasty fine print or confusing terms.”
On top of no introductory period, minimum deposit or mandatory monthly top-up and a 2.25% ongoing interest rate, interest on savings in a Stash account will be calculated daily and paid monthly.
It can be set up through a Xinja bank account using the mobile app. Wilson said: “The same day we got our full banking licence, we offered customers a fee-free transaction account, and this is the next step for us, a savings account with a ripper rate. We’ve been building a bank, from scratch, guided by our customers, that offers a very different banking experience for Australians.”
Xinja is also planning to launch personal and home loans later this year. The Australian neobank, which operates entirely online, raised funds via two equity crowdfunding offers in January 2018 and 2019, and a further A$60 million (US$ 40.66 million) from investors in Australia and around the world.