What will savings account interest look like?

[nahtE]

Hi there,

Recently the RBA has been dropping the cash rate quite frequently recently, which while may be beneficial for those loaning money, is of course detrimental to those who like to save and keep their funds in a high interest savings account (HISA).

I am wondering as Xinja develops more, will a HISA be added and if so, is Xinja going to follow in the footsteps of other online banks (such as ING or UBank here in Aus) who offer higher interest rates for savings accounts than branch-based banks?

Many thanks,
Ethan

[photoxinja]

Hey @nahtE, thanks for letting us know! We’ll be launching Stash our savings accounts soon…at competitive interest rates

Sorry we can’t reveal just yet but we can say there will be less strings attached

[brett]

Hi @photoxinja

Are you able to confirm if Stash accounts (I say plural because I’d need two) will have a BSB and account number so that direct debits and credits can be done from it? And down the track can BPay be transacted from it.

Haven’t been able to get a clear answer on this…

Cheers,

Brett

[photoxinja]

@brett , I can give you a sneaky reveal and confirm the Stash Accounts will have a BSB and Account number However we won’t be allowing direct debits as we want to encourage superior saving habits amongst Australians. Money can roll into your Stash account just not out We are always open to feedback so happy to hear further on your thoughts

Cheers,
P

[brett]

Thanks Peggy,

Great that there’s a BSB and account number for stash’s, but not so great they you can’t transact from them. That more or less shuts me out of using Xinja as my main bank. I’ve said a few times before, I won’t change my banking habits to suit the bank, rather the bank needs to have the flexibility to suit me (as any other bank does if I’m being honest). I currently pay bills out of one savings account and mortgage payments out of another. Have done for years.

I’m not sure how helpful it is stopping people from using the account how they wish. If you need to move money into the transaction account just to transact that’s just an inconvenience in my opinion. Perhaps make the no flow out behaviour an option.

Cheers,

Brett

[nahtE]

Thanks for your replies mate.

Regarding “Money can roll into your Stash account just not out”, I’d love for you guys to consider the route that ING took in which while direct debits aren’t allowed, there are no penalties for moving money back and forth between checking and spending accounts.
This means that we can maximise our $ in savings while not worrying about losing out on hundreds of dollars of interest if we need to make a purchase that our spending account can’t cover.

Cheers,
Ethan

[CaptainXinja]

Hi @nahtE and @brett - we’re actually reviewing this currently. There may well be direct payments from Stash as per the model you describe - for the reasons you describe! We’re pooling all customer requests and resetting priorities at the moment, so we will update this and the roadmap as soon as we’ve pulled this together. Cam

[brett]

Thanks Cam @CaptainXinja

Just keep in mind that you guys have claimed to be “can’t free banking”.

Not being able to transact from my own savings is a pretty big can’t.

Not being able to transfer instantly with Osko and PayID is a pretty big can’t.

Not trying to be smart (well maybe a little) but I can do all of these things with my current bank…not a compelling enough case to move yet so I’m glad you’ve decided to reevaluate.

Brett

[nickelslol]

This money flowing in but not out isn’t good

I don’t need to have debits coming from a savings account but need to be able to move between them when I want to

I currently use multiple savers with my current bank to save for things and there are times when I need that money for something that’s come up

[Azzy]

A few thoughts on this.

There seems to be an underlying assumption here that having direct debits processed from a savings account represents poor money management. I would challenge this and offer myself as an example.

I have a savings account where my salary is deposited and all direct debits are processed from. I then transfer fixed amounts into a true savings account and into a transaction account for everyday purchases.

By not having everything flow through my transaction account, I have much better handle on how much money I am spending day to day relative to my budget.

This is how I have managed my finances very effectively for the last 15 years and not being able to do this would be a deal breaker for me too.

[brett]

@Azzy sounds like you bank similarly to me. I think the confusion for some people is in the name…at the end of the day, it’s simply a bank account. The fact it is named ‘savings’ by banks is irrelevant.

For me, I use a savings account for the same purpose as yourself for two reasons - 1. I don’t need it to have card access so a second ‘everyday’ account makes no sense and 2. A savings account has a higher interest rate than an everyday account.

I’m actually astounded that with all the experts at Xinjas disposal, they seemingly don’t understand how a huge chunk of people actually bank!

[Kain]

I agree that “savings” in the Xinja stash should be transaction free. The confusion comes from other banks referring to their secondary transaction accounts as savings accounts.
The option to have a secondary transaction account for general living expenses and bills would be preferable.
Ideally I’d like to have three accounts; Main account for salary deposit and money to spend, secondary account with money set aside for bills and other life expenses, and thirdly the stash/savings account.

[brett]

@Kain pretty much every other bank refers to secondary accounts as ‘savings’. (Savings because they generally earn higher interest than a transaction account). That being the case it’s more accurate to say that Xinja are the ones who are confusing the situation here.

[Kain]

@brett The higher interest accounts at other banks have ridiculous conditions that don’t allow transactions. They penalise you for making withdrawals, like losing your bonus interest.
No one wants that.
The interest on those account don’t come close to what Up and 86 400 currently offer, so Xinja are in a much better position to provide something more worthwhile than other banks.
They just need to allow transactions from that account without penalties.

[brett]

@Kain My bank doesn’t have any conditions on savings… I can transfer in and out both internal or external using BSB or Osko/PayID, BPay bills etc. all without penalty. The interest rate isn’t as good as 86400 or up of course.

I think we’re probably asking for the same thing, just in different ways.

At the end of the day, if the stash accounts offered by Xinja don’t allow me the same flexibility I just can’t move all my banking to Xinja…which I want to do. I just hope someone is listening.

[Kain]

I think we’re probably asking for the same thing, just in different ways.

Definitely.

Hopefully Xinja launch this Stash account soon.

[Trevor_S]

Can anyone explain to me what ‘Stash’ is? Is it a separate investment/savings or integrated with Xinja?

[Kain]

It’s the name of the savings account that will be integrated with Xinja.
It hasn’t launched yet.

[CaptainXinja]

Thanks @Kain - yes stash is launching to staff now and generally in the new year.