So what’s a Neobank?
Neobanks are simply banks which are completely digital. Although the word bank is generally associated with long queues, poor customer service and countless fees, neobanks promise to be different. They don’t even have physical branches!
What they do provide is all the banking services you need from the convenience of a smartphone app. They vow to deliver app-based banking that is easy to use and beautifully designed, with the ability to quickly track your spending while also delivering an excellent customer experience.
Is Xinja Safe?
At first, you may be apprehensive about the idea of a fully digital bank. Although, it is important to note that neobanks are regulated by the same authorities as traditional banks – the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investment Commission (ASIC). Plus, just like traditional banks, deposits of up to $250,000 per person are protected by the Financial Claims Scheme (FCS).
Xinja Account Features
The Xinja bank account and debit card comes with all the features you would expect from a traditional bank plus more!
When enabled each transaction is automatically rounded to the nearest dollar, with the amount rounded put in your savings account
Xinja Is Great For Travel
While traditional banks will charge in excess of 3%, Xinja has zero currency conversion fees and zero international ATM withdrawal fees (although the ATM provider may charge a fee). To work out the currency conversion rate, Xinja uses Mastercard’s daily standard FX rate, without applying any markup.
1.80% p.a Interest Rate
Xinja boasts one of the best savings account (or “Stash” in Xinja terms) interest rates out there, currently 1.80% p.a. Customers can earn interest on balances up to $245K, with interest calculated daily and paid on the first day of the following month.
Previously, Xinja’s interest rate was excellent at 2.25%, although Xinja decided to reduce this due to the Coronavirus crisis. Unfortunately, Xinja also announced that they are currently not allowing new Stash accounts for the same reason.
To be eligible for the Xinja bank account and debit card, you will need to meet the following requirements: