The Australian:
Xinja holds savings rate despite RBA cut

The Australian: Xinja holds savings rate despite RBA cut

Gerard Cockburn from the Australian reports Xinja will stop taking new customers for its interest accruing savings accounts in order to avoid cutting deposit rates for existing clients, while managing deposit costs.

The move comes as financial institutions across the sector are widely expected to cut rates on savings products, following the Reserve Bank of Australia’s decision on Tuesday to slash the cash rate by 25 basis points to a record low of 0.5 per cent.

“We won’t drop the rate on Stash accounts now, just because the RBA has dropped the cash rate and demand is much higher than expected”

Eric Wilson, Xinja’s Chief Executive and Founder, also noted the pause on new savings account customers would act as a mechanism to hedge the increased costs associated with providing a higher rate in a low interest environment.

You can read the full article here: (Please note, the Australian is behind a paywall).

[gravityform id="5" title="false" description="true" ajax="true"]
[gravityform id="7" title="false" description="true" ajax="true"]
[gravityform id="8" title="false" description="true" ajax="true"]