Volt Bank Limited (Volt) Is Closing Its Deposit Taking Business and Intends to Return Its Banking Licence

IMPORTANT ANNOUNCEMENT TO ACCOUNT HOLDERS
Volt Bank Limited (Volt) is closing its deposit taking business and intends to return its banking licence.
Customers need to withdraw their funds from their Volt bank accounts before the 5th of July 2022
Volt has made the difficult decision to close its deposit taking business and has commenced the process of returning all deposits to its account holders.

Customers need to transfer the balances held in all Volt accounts to a nominated bank account with another financial institution before the 5th of July 2022.

The interest rate on all accounts has been set to zero. All interest has been accrued to your account up to the 29th of June 2022 when the interest rate was changed to zero. This interest will be paid to your Volt account on the 29th of June 2022 except for the Save and Spend accounts which will be paid on the 1st of July 2022.

It is recommended that all customers stop using their accounts immediately. If your account is a Term Deposit, there will be no break costs in relation to the early closure of your account.

Volt will start closing accounts from the 5th of July 2022 so please ensure you have withdrawn all your funds to leave a balance of $0 in all accounts before then.

You do not need to contact us to close your account. Volt will close your accounts once all money has been transferred out. We will not close accounts while there are funds in your Volt account. Once the funds are transferred out we will issue you, via email, a final closed account statement which will provide you with a record of interest paid this financial year, for your tax records.

Your accounts are still operational, and Volt will continue to provide service to you as you transition your banking arrangements. 

Volt is doing everything possible to return the deposits in an orderly and timely manner. The Australian Prudential Regulation Authority (APRA) is closely monitoring this process. In addition to this, deposits are protected under the Australian Government Financial Claims Scheme which guarantees deposits up to $250,000 per account holder. You can find out more information about the guarantee at the FCS website.

Visit our FAQs for more information

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Comments

    • +2

      Hope you're ok and find a new job asap

      • +1

        Thanks… A break just in time for school holidays :)

        • Not necessarily the way you'd like to leave but good luck!

  • +1

    well that dosent instill any confidence in choosing the non majors

    • +2

      Lol yeah, especially banks that are stupidly ‘app-only’ as well and zero phone contact

      • +2

        In fairness, Volt were very easy to get in touch with by phone - never had any problems.
        There are now very few high interest savings accounts that are not NAB owned (Citi, 86400, ubank all NAB).
        Limited choices

        • +1

          86400 is now ubank

      • +1

        Up Bank is app only and is the best bank and app I've ever dealt with.

        Backed by Bendigo Bank so they don't have the issues of Volt or Xinja.

        • Was a partnership between Ferocia and Bendigo now solely owned by Bendigo.

    • +1

      Most non majors are backed by a big four

  • -6

    Another legacy bank bites the dust.

    • +5

      What do you mean by 'legacy'?

      • -6

        👵

        • +22

          Use your words, buddy! You can do this :)

  • +1

    This seemed inevitable when they went down route of limiting customer signups. Xinja did this and followed the exact same path to demise.

    • +1

      I'd expect the limiting of customer signups was a symptom of the their issues, not the cause - it was step 1 of closing down their deposit taking business, not the cause of.

      • Yes, exactly. In both cases it would appear they basically had a surplus of deposit money that that couldn't profitably lend out.

        Both tried to limit the flow of new deposit money to address the imbalance, but obviously couldn't find profitable demand for those funds.

    • Xinja went out the door (they are still trading and burning investors money doing nothing) for reasons other than that. They didn't even try and lend money. They also spent money on over-priced offices and were somewhat optimistic in their reporting of new investment money.

  • Xinja vibes

  • Not surprised… without a lending arm you can't turn a profit.

    Not really sure what their point of difference is, I can get fee-free banking from the Big 4 (including Citibank and Bank West) which have apps.

    And these days with the cost of borrowing increasing, it's difficult to raise capital on businesses that don't make money in the short/medium term.

    Next will be Milkrun and the likes.

  • As former Australian Mortgage staff (and investor), very sorry to hear about this.
    Tough old industry out there and hit the market at a very tough time.
    Love to all AMM&V staff.

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