Digital bank 86 400 reveals details of its transaction and savings account

When you join 86 400, you'll get a Pay account for daily spending and a Save account with an impressive bonus rate of 2.50% p.a.

New digital smart bank 86 400, which hopes to be a real competitor to Australia's Big Four, has revealed the details of its first banking products available to Australian consumers. The bank has announced a linked Pay account and Save account as its first product offering. The Pay account is for day-to-day transactions and the Save account is for earning interest.

86 400 was granted its full banking licence from the regulator last month, choosing to bypass the restricted licence and go straight for the full Authorised Deposit-Taking Institution (ADI) licence instead. This made 86 400 the second new bank to be granted a full ADI licence, after Volt received its licence in January. But until today, neither Volt nor 86 400 had revealed anything about the bank accounts they'd be launching.

The new Pay account offered with 86 400 comes with a linked Visa Debit Card and you can use it as a normal transaction account in Australia or overseas. You can link the account to Apple Pay, Google Pay, Samsung Pay, Fitbit Pay or Garmin Pay, too. The Pay account has no monthly account fees, but there is an international transaction fee of 1.5% applied when using the card overseas (or when shopping online from overseas merchants).

When joining 86 400, you'll also get a Save account linked to the Pay account. The Save account boasts an impressive interest variable rate of up to 2.50% p.a., one of the highest interest rates offered on a savings account today. To get this rate, users will need to deposit $1000 a month into their 86 400 Pay or Save account. If you don't meet the deposit condition, you'll earn the standard rate of 0.40% p.a.

How does 86 400's bank accounts compare to others?

The Save account offers a great interest rate. There aren't many savings accounts that offer an ongoing rate higher than 2.50% p.a. in this low-rate environment. The UBank USaver offers slightly less interest at 2.41% p.a.; however, it requires a smaller monthly deposit of just $200. Rival digital bank Up also offers 2.50% p.a. on its savings account and there's no monthly deposit condition to meet, but you do need to make at least five transactions from the linked Up transaction account monthly.

In terms of the 86 400 Pay account, there are no monthly fees, which is a big plus, and you can take your pick between digital wallet solutions. However, there is an international transaction fee applied to overseas transactions, which is something that you can avoid with Up Bank, ING Orange Everyday and UBank Ultra Transaction. However, 86 400 has promised an app that's packed with useful spending and saving features. For example, when you've got your account up and running, it'll look at your transaction history and tell you if you've got any bills coming up in the next 30 days.

If you're keen to be among the first to join 86 40, you're now able to get an account by joining the wait list on 86 400's site.