Neobank Volt launches savings account to customers on waitlist
The Volt Bank savings account offers a competitive interest rate of 2.15% p.a. with no deposit conditions to meet.
Digital bank Volt today has launched its first product, a savings account, to select customers on its waitlist. The Volt savings account offers a market-leading ongoing variable base rate of 2.15% p.a. with no conditions to meet. Customers don't need to deposit a certain amount into the account each month or use their debit card a select number of times to earn the high rate.
Volt was the first digital bank to receive its full unrestricted Australian Deposit-Taking Institution (ADI) licence from the regulator back in January. However, despite being the first neobank to be granted a full banking licence, Volt was yet to release any products to market until now.
It had launched a waitlist for customers to sign up to which now has more than 40,000 people on it. Volt will start to roll out its new savings account to customers on the waitlist in stages.
How does the Volt savings account compare?
The Volt savings account is unique for a number of reasons. Firstly, the 2.15% p.a. base rate is extremely competitive in today's low-rate environment. And secondly, unlike most other high-interest savings accounts there are no hoops to jump through to earn this high rate.
Rival neobank Up, which launched to market in October 2018 using the banking licence from Bendigo and Adelaide Bank, offers an everyday account and linked savings account. The Up savings account offers a bonus rate of 2.25% p.a. which is slightly higher than Volt. However, to earn this bonus rate customers need to make at least five purchases with their Up debit card each month. If you don't meet this, you'll only earn the base rate of 0.50% p.a.
Digital bank 86 400, which was granted its full banking licence in July this year, also offers customers linked Pay and Save accounts. The 86 400 Save account offers a bonus rate of 2.25% p.a. in line with Up's rate, but customers need to deposit $1,000 a month to get this. If you fail to deposit $1,000 one month, you'll earn the base rate of just 0.40% p.a.
Another market-leading option is UBank's USaver Account, which offers a bonus rate of 2.10% p.a. when you deposit $200 a month. If you don't meet this deposit condition, you'll earn the base rate of 1.04% p.a.
So in terms of the maximum interest rate, you could earn slightly more with Up or 86 400 than with Volt. However, this is only true if you can commit to meeting the account conditions each month. If you're unlikely to meet the account conditions, Volt's savings account definitely comes out on top as you'll earn a competitive 2.15% p.a. each month with zero conditions to meet.
If you're interested in getting a Volt account, you can join the wait list on its site or wait for the public launch in early 2020.