Digital bank Xinja swipes more than $50m in deposits from Australia's big four banks

It hit $100m in deposits three weeks after its digital savings account launched.

Xinja Bank has received more than $100m in deposits three weeks after the launch of its Stash digital bank savings account, half of which came from Australia’s big four banks, the company said in a press release.

“More than half of the deposits have come from Australia’s big four banks, a very strong signal that consumers are keen to embrace digital banking, get a great rate on their money and are no longer beholden to the banking oligopoly that was shown in such a bad light during the Hayne Royal Commission,” said Xinja Bank CEO and Founder, Eric Wilson.

Stash, which was launched on January 15, offers a 2.25% savings rate from the first dollar invested up to a maximum of $245,000. The bank’s 2.25% interest is calculated daily and paid monthly, with consumers receiving the full rate on every dollar in their account.

Xinja Bank was granted a full banking licence in September 2019, opening transaction accounts for early customers the same day. Xinja also has an app and a prepaid card in the marketplace.

Xinja says that it now has over 15,000 customers holding over 23,000 accounts. Wilson noted that their new customer base are requesting for joint accounts, NPP (PayID), and homeloans to be added in the future.