The neobank has said its rate of 2.25 per cent has made it Australia’s “best savings account”, following rival Volt Bank’s launch of its savings product in December, with a rate of 2.15 per cent.
Xinja has promised interest will be calculated daily and paid monthly, so customers will gain payments on what they have daily, regardless if they remove money the next day.
The account, which is a variable rate product, has no introductory period, minimum deposit or mandatory month monthly top-up. Interest will be paid on balances up to $245,000.
It also has listed no currency conversion fees, no ATM fees and instant balance updates in more than one currency when travelling and the ability to lock and unlock users’ cards within the app.
Eric Wilson, Xinja founder and chief executive, commented Xinja has more products planned to be released in the year ahead.
The neobank, he said, is aiming to use its technology to make banking more engaging, so consumers become more adept with their finances.
“Australians need a bank that serves their interests. We’re not like Australia’s existing banks: we are a true neo with a different culture and different offering,” Mr Wilson said.
“We want to draw people in and create the sort of engagement that turns good financial behavior into habits. We fundamentally believe that if you make managing your money engaging, people will get better at it.”
Concurrently, the neobank has launched its “Ditch Dad Banking” marketing campaign – targeting millennials and younger consumers.
Xinja gained its ADI licence in September and soon afterwards launched its transactions account to customers on its waitlist.
The new savings account has come after neo competitors Volt Bank and 86 400 have launched savings products in 2019 – with 86 400 being the first to launch one to the general public in September along with its transaction account.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
Sarah has a dual bachelor's degree in science and journalism from the University of Queensland.