Australian neobank Xinja Bank has attracted over $30m within the first seven days of launching its new savings account.
Xinja’s new savings account, Stash, is available to Australians and has an interest rate of 2.25%.
Eric Wilson, Xinja Bank founder and CEO, said: “We have built a 100% digital bank from scratch and within 7 days of launching our first ever savings account, we’ve had a ripper response: in excess of $30m flowing into our Stash savings accounts.We are offering a market-leading rate without the usual restrictive conditions. And we are offering a new way to bank.
“We’re committed to the long game of staying lean and reducing costs and overheads to do the best by our customers. Having happy customers will go a long way to helping us break the high-cost, high profit model of Australian banking.”
“There are no strings attached”
In September 2019, Xinja Bank gained a full banking licence and opened transaction accounts for early customers.
The Stash account launched on January 16 2020, offering an interest rate of 2.25% for investments up to $245,000.
“There are no strings attached to our great rate,” added Wilson. “There is no introductory period, no mandatory monthly top-up amount, no minimum deposit – no bate and switch. Xinja Bank’s 2.25% interest is calculated daily and paid monthly. You get the full rate on every dollar in your account.”
The Stash savings account has its own BSB and bank account numbers.
In addition, customers can use Xinja’s transaction account with Apple Pay and Google Pay, as well as in Xinja’s mobile app. Once customers have a transaction account, they can then open a Stash savings account.
Wilson said: “We are true to our ethos: at Xinja Bank we think every dollar should work as hard as possible, and there should never be any nasty fine print or tricky terms and conditions.We say that if you’re unhappy with your current bank, and a lot of people are, then try us. Help us to design our bank as we grow.”
Xinja Bank aims to add personal loans and home loans to its repertoire in the near future. However, the challenger will not offer credit cards.
Wilson said: “Because the only way to make money off credit cards is
when your customers stuff up.We can do better than that by our customers. We will deliver new, and better banking products.”