Australian Neobanks Continue to Slash Interest Rates on Savings Accounts due to Economic Challenges Created by COVID-19
Even though interest rates offered by challenger banks or neobanks in Australia (and globally) are generally higher than those offered by incumbents, Mozo reports that these all-digital banking platforms have been lowering their rates.
Analysis performed by Mozo reveals that three neobanks were forced to lower their interest rates just like the country’s Big Four banks (Commonwealth Bank of Australia, Westpac Banking Corporation, Australia and New Zealand Banking Group, and National Australia Bank)..
During the past month, Mozo found that neobank Up reduced rates by 25 basis points on its Saver Account (1.65%). Digital bank Xinja and 86 400 slashed rates by 15 basis points off their savings accounts, which resulted in new lower rates of 1.65% and 1.70%, respectively.