Interest rates going down?

What’s the plan team ? UBank, Volt, ING have all reduced rates. Will Xinja do the same or have you already managed to send enough volume elsewhere with the tier changes to be able to afford to keep the current rate ?

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I am not the bank. These are just some generic sentiments and/or assumptions based on possible likelihoods and should not be taken as authority or advice in any sense.

Interestingly now, for those that have a Stash, this is actually one of the top rates in the market.

Given the rate and max amount has only recently come down, I would tend to think we’re not going to see anything move in the forseeable future.

The possibility of a rate cut would also have been factored into the values of the current decision.

I think it a bit depends on how proposed funding unfolds in the weeks and months ahead and the impact of the reduction of savings volume they were holding.

I also think, they would like to try and hold the rate for as long as they can.

Either way, a rate reduction, say… 1.25-1.4%??? should not be ruled out for a future time.

I have no idea. I don’t really know anything.

Hi @John2 & thanks @yogi!

A further rate drop is not yet decided, but is something we’re considering.

I guess that question is now answered.

1.5% staying (for how long who knows) but another change to the structure of how interest is calculated. A new cap or max of $50k introduced from next week :frowning_face:

Keeps the headline rate at 1.5% but in reality if you have $150k in your account this means the actual rate has been slashed to a third of what is was or a tiny 0.5%.

So if you have a decent balance time to move on from Xinja.

Big question is will Xinja now open up the Stash account to new customers ?

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you can get 0.75% for 12 mths on deposits between 5k and 500k, time to move my excess funds fron Xinja

I guess it’s understandable from a Xinja business perspective, paying this interest is going to be loss making, especially as there aren’t really many revenue generating products or features as it stands. However from a customer view, we were enticed by the high interest rates which have been whittled away understandbly due to interest rate drops, but not much else to keep us on board. What’s next Xinja?

Hi all. We found that 85% of our Stash customers had <$50k in their accounts, so whilst it’s not such good news for the 15% that had more, it did mean we could keep what’s a pretty good rate for the majority (and for a portion of everyone’s Stash savings). @Ecosse we are looking forward to launching Dabble, our US share trading account and also personal loans as soon as possible. As to when exactly, we will let customers know as soon as it’s certain.

That’s interesting about the 85% threshold.

Can I ask (if you wanted to make comment) but I was curious if this drop in volume perhaps plays into some Stash availability in a forseeable future?

Or not necessarily any connection and it just covers this rate reduction?


While I don’t like this latest decision I can see why Xinja did it.

Those with more than $50k will withdraw it, cutting costs. Also the conditions for the 85% are pretty good and keeping these customers happy will cost far less than maintaining the Stash rate for the remaining 15%. I guess that the former group is also more likely to be signing up for personal loans when they are offered.

The 85% observation is interesting but a bit cute for my liking. There is nothing generous in this offering - it is designed to put the max money back in Xinja’s pocket and across Xinja’s book represents a much bigger reduction than the RBA or any competitor. If you have $150k your effective rate is now 0.5%. If you have $100k your rate is now 0.75%.

The 1.5% might make a nice headline but once you get into small balances it really is meaningless for people. At $1k balance it is just over a $1 a month. At $10,000 it’s just over $10 a month.

By all means make the change but be a bit more honest about it please.


It’s not about being generous or not generous, it’s about offering what they can do to best support their business. They’re a bank and they’re a bank that are trying to be extra careful with their outgoings.

The amounts of interest for just about any account anywhere now are low. There’s nothing dishonest - from so and so date, you can earn 1.5% on up to 50k. Though it’s not as high any more, parking 50k to earn a little money with no effort is still a reasonable offering.

Your analogy of 150k and 100k is irrelevant. The amount was 245k a while back but is no longer relevant. If you have a Stash account, from whenever the change over date is, the only relevant number is 50k.

This was covered in another thread or two recently. Nothing has changed about HOW the interest is calculated, simply the numbers that work the formula.

The question is whether the interest rates or maximum amounts will be relaxed once RBA rates go up? Also the sustainability of the Xinja business without new products not launching yet is going to be a concern. Personally without the higher interest rates, I don’t have any reason to be banking with Xinja. The payment features are not up there with others (both neo and mainstream banks)

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The RBA said last month that “…we do not expect to be increasing the cash rate for at least three years.”

I think we’re going to be in a low interest rate environment for some time still.

ING 1.35% up to 100k 5 transactions and min 1k income per month.
Your remaining 50k could be deposited with Up Bank 1.1% atm up to 50k with 5 transactions
I signed up in June with Xinja just to wait 5minth for nothing.

There are others, Just saying.

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Yes, there are others. Just seems a shame that the strategy was to bring customers over with high initial promotional rates that have now been reduced over time. Let’s hope Dabble is something worth looking forward to…

Hi @Ecosse if you look at all other banks, they’ve all been lowering their rates following the RBA base rate. This has fallen multiple times this year as I’m sure you’ve seen, and you’ll note that all banks (other neos, other digitals, big 4) have all dropped their rates multiple times too. We started at a relatively higher point and we’re now still relatively high. So dropping rates is not just a Xinja thing!

Yeah fair enough, I get it. But now this means that you’re just the same as other banks!

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mmm - just a few points higher at 1.5% than quite a few :_ninja_emojis_lilac_01: (ING 1.35%, NAB: 0.7-0.75%, CBA: 0.55%, Westpac: 0.75%, Up 1.1%, 86400 1.2% etc).

Yep, you’re still higher, but only for $50K now. My point was that you’re all doing the same thing. I’ll keep $50K in Xinja for now, but there’s not much else for me at this stage…