Australia’s first online only bank Volt is shutting down with customers set to have all their money returned by July 5.
Around 6,000 Aussies will be affected by the shut down with Volt recommending they stop using their account immediately.
“Volt will start closing accounts from the 5th of July 2022 so please ensure you have withdrawn all your funds to leave a balance of $0 in all accounts before then,” Volt said in a statement.
“It is recommended that all customers stop using their accounts immediately.”
Volt said customer accounts will be closed automatically once all money has been transferred out.
“We will not close accounts while there are funds in your Volt account,” it said.
“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.”
Customers will need to transfer the balances held in all Volt accounts to a nominated bank account with another financial institution before July 5.
The interest rate on all accounts has been set to zero and customers have been paid interest up until June 29.
“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,” Volt said.
Volt did not say why it was choosing to close the deposit taking business but the Australian Prudential Regulation Authority (ARPA) said it was a “commercial decision”.
“Volt’s decision to exit the banking industry and pursue other business opportunities is a commercial decision for Volt,” APRA said in a statement.
“As Australia’s financial safety regulator, APRA will closely monitor the process to ensure funds are returned to Volt depositors in an orderly and timely manner.”