Volt bank and 86 400 both cut savings account rates
Digital banks Volt and 86 400 have each cut the interest rate on their savings accounts by 25 basis points, following the latest RBA rate cut.
Both Volt bank and 86 400 have cut the variable interest rate offered on their savings accounts over the weekend. Volt cut the variable interest rate on its Volt Save account by 25 basis points from 2.15% p.a. down to 1.90% p.a. 86 400 also cut its Save account rate by the same amount, bringing its variable interest rate down to 2.00% p.a from its previous 2.25% p.a rate.
Both banks cited the RBA's latest cut to the official cash rate as the reason for the interest rate change.
Volt informed customers about the change in an email to account holders on Friday afternoon. The statement sent to customers read: "As you may know, last week the RBA lowered the official cash rate by 0.25%. As a result, we'll be adjusting the interest rate on your Volt Save account by 0.25%, from 2.15% to 1.90% p.a., as of Saturday 14th March 2020."
Volt began on-boarding customers on the waitlist to the new Volt Save account in December. At the time, the bank said it had more than 40,000 Australians on the wait list. There's no doubt that many of these customers were drawn to the bank due to the competitive interest rate and the fact that there were no strings attached to earn it, unlike a lot of savings accounts which require ongoing deposits.
In the statement to customers, Volt confirmed that even though the interest rate was changing everything else would remain as is. This means there are still no conditions to meet to earn the interest rate, and no monthly deposit conditions or withdrawal restrictions.
In a similar statement to customers on Friday, 86 400 acknowledged the recent RBA cash rate cut and said:"....we'll be adjusting our Save account interest rate to 2.00% p.a. in line with the move. The bonus rate is now 1.60% p.a. and is paid on balances up to $100,000 per Save account, while the base rate remains the same at 0.40% p.a."
Where else can you get a great savings rate?
Even with this rate cut, both the Volt Save account and the 86 400 Save account still offer two of the most competitive variable interest rates for savers. This is especially true for Volt, considering there are no conditions to meet to earn this rate.
Fellow digital bank Xinja is still offering 2.25% p.a. on its Xinja Stash account, but the bank announced last week it's not allowing any new accounts to be opened. So you'll only benefit from Xinja's market-leading rate if you've already got an account.
Up bank offers 2.25% p.a. on its savings accounts, though there are a few conditions attached. The Up Save account offers 2.25% p.a. on balances up to $50,000 when you make 5 or more purchases a month from the linked Up everyday account.
Elsewhere, Bank of Queensland (BoQ) offers 2.00% p.a. when you deposit $1,000 into your linked BoQ Day2Day Plus Account each month, and make 5+ eligible transactions a month. And Suncorp offers 1.90% p.a. if you grow your balance by at least $200 (excluding interest) and make no more than one withdrawal in the month.
If you're not happy with the interest rate on your current savings account, compare your options and make the switch. Just remember to check the account conditions first, to make sure you can meet the monthly deposit requirement.