Xinja Bank has imposed a cap of $50,000 on the level of deposits in its Stash account on which it will pay interest.
The bank astounded customers and rivals only five weeks ago when it imposed a cap of $150,000 as the interest-earning maximum.
This second step must be informed by the bank’s ongoing trading losses and hefty burn rate, as reported in Banking Day yesterday.
At the bank’s blog, one Xinja executive yesterday explained: “We found that 85 per cent of our Stash customers had <$50k in their accounts, so whilst it’s not such good news for the 15 per cent that had more, it did mean we could keep what’s a pretty good rate for the majority (and for a portion of everyone’s Stash savings).”