Stash back soon at Xinja

Xinja Bank's Stash savings accounts "are reopening in a few months", if the stars align for Australia's most controversial bank.

David Nichols, a co-founder and general counsel at Xinja, shared this nugget on LinkedIn last night.

Xinja closed off, or "paused" access to this account in early March, determined to maintain the yield of 2.25 per cent for early adopters.

The negative margin Xinja must cope with - given the overnight cash rate at times has been less than the RBA target rate of 0.25 per cent - is chewing through the bank's slender capital.

Xinja Bank is working through a promised capital raise of A$433 million (with a first tranche of $160 million intended to be banked by the end of May).

Eric Wilson, the bank's CEO, in a blog post last week added colour to the story behind this deal first explained in an investor update sent to shareholders on March 30.

"We are now undertaking several weeks of background checks, due diligence and legal examination of the investors to back up what we have been told," Wilson wrote.

The investors are being rounded up by Dubai-based World Investments and the true source of the funding is subject to conjecture and curiosity, including among Xinja customers and owners debating the topic with Wilson at the blog.

Several weeks takes Xinja into the second or third week of May. And the bank must also wait on multiple regulatory approval in the UAE and Australia.

Further, Wilson clarified that "this deal is outside of their usual investment parameters. It is a much smaller deal than they usually participate in".