BANKS GONE wild

WHAT’S A NEOBANK AND HOW CAN IT WORK FOR YOU?

Xinja, Up, 86 400 – they might sound like energy drinks but they’re actually neobanks. That’s a digital-only bank that saves enough on branches and other traditional bank structures that it can offer great interest rates – even in times like this. And they’re all guaranteed by the government, so you won’t lose money in the (unlikely) event they go bust.

UP: Backed by Bendigo Bank, Up offers an interest rate of up to 1.85% (if you make five purchases a month). It sends reminders of upcoming bills, rounds up spare change into a savings account and offers multiple savings accounts for different purposes (eg. house deposit, new laptop). You can make payments via card, phone or watch and there are no monthly fees. up.com.au

86 400: With an interest rate of up to 2% if you deposit $1,000 a month, 86 400 lets you connect all your accounts across financial institutions so you can get a clear picture of your finances. It predicts regular bills and offers Energy Switch, which is an independent, free service that helps you switch electricity providers to save money on your bills. 86400.com.au

XINJA: Xinja has a brilliant interest rate of 2.25%. But it has stopped new customers opening the high-interest Stash savings account so it can keep offering current customers that rate. Opening a regular account may still prove to be worthwhile, even though it pays no interest, as existing customers will be top of the list once Stash accounts reopen. Card, mobile and watch payments are all enabled and there are no currency conversion fees. xinja.com.au >