Xinja will cut the interest rate on its Stash savings account to 1.8 percent from 2.25 percent, after it was previously forced to freeze new account openings to continue providing that rate for existing customers.

“We have kept the rate at 2.25 per cent despite successive rate cuts by the Reserve Bank and we are probably the only bank to have done that,” Xinja chief executive Eric Wilson said. “We thought it was only right to protect our current customers rather than go after new ones, and we achieved this by putting a pause on opening new Stash accounts.

“However, this is a floating rate and we cannot ignore two rate cuts by the Reserve Bank indefinitely. However, our interest rate remains very competitive and without the conditions that banks typically attach to higher interest rate accounts.”

Neobank only recently began rolling out its new Stash account and is targeting $1 billion in deposits by the end of the year, after record low interest rates sparked an influx of $200 million in funds to the startup in less than a month.

"No more new Stash accounts means no cost increase for Xinja and means we can protect the interest rate for people who already have a Stash account," Mr Wilson said in March. “…When faced with higher-than-expected deposit flows and RBA rate cuts, most banks would simply cut deposit rates, hurting existing customers while chasing new ones. This is not Xinja's topic.''

Xinja still plans to launch a host of new products, including personal loans, in August.