Netbank trims rates for select users for second time in 12 months

Interest drops to 4% for legacy accounts as the platform focuses on long-term sustainability. 

Netbank is lowering interest rates again for a segment of its users, trimming the rate for accounts previously earning 4.5% down to 4% starting May 4, marking the second reduction within 12 months.

The update adds to a steady decline in returns offered by the digital banking platform, which built much of its early appeal on relatively high interest rates. That edge is now being pared back, a shift that could test loyalty among early users even as the company appears to recalibrate for long-term sustainability.

The downward trajectory

Netbank, founded in 2019 and registered as a rural bank operating as a banking-as-a-service (BaaS) platform, initially offered a 5% annual interest rate for new users in May 2024, with promotional rates reaching 5.5%. By June 2025, users on those tiers were moved down to 4.5%. Now, those same users will see another cut to 4% starting May 4. New users currently earn 3.25% per annum.

To soften the impact, Netbank has been steering users toward its six-month time deposit product, which offers a 4.5% rate.

Recalibrating for profit

Despite the downward adjustments in savings yields, Netbank has reported strong growth, with revenue up 88% year on year. The platform has also expanded its footprint through partnerships, including providing savings account infrastructure for Atome users.

Like many digital banks, Netbank initially attracted users through higher-than-traditional bank interest rates made possible by leaner operating structures. But across the fintech space, those incentives have been gradually tightening as players shift focus toward profitability and risk management.

 

 

The high-yield race is slowing down. Netbank is trimming interest rates to 4% for legacy users starting May 4, its second cut in a year.