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Ubank increases savings rate to equal second highest in market

Mark Bristow avatar
Mark Bristow
- 4 min read
Ubank increases savings rate to equal second highest in market

Digital bank Ubank has announced it will be increasing the maximum bonus interest rate from 5.10 per cent to 5.50 per cent on its Save product from 1 July 2024.

This puts it in the top savings accounts available, only equal second to the market leader (excluding kids accounts and introductory rates).

Conditions to achieve the bonus rate will also be changing. To be eligible for the bonus rate, customers will need to make a deposit of at least $500 each month into any of their Spend, Bills, or Save accounts.

The bank has also introduced a new balance cap to be eligible for the highest rate. From next month, the 5.50% rate will only be paid on balances of up to $100,000. Balances between $100,000 and $250,000 will receive a rate up to 5.00 per cent.

Commenting on the new rate, Ubank's Chief Product and Growth Officer, Andrew Morrison, said: "The new bonus interest rate that we are announcing today is one of the most competitive in the market and is an awesome opportunity for customers, new and existing, to make their money work harder for them."

Bills management and budget features also announced

Alongside the new savings rate, the digital bank has recently announced a suite of new features to help customers balance their budgets and bills.

The features include the bank’s new “Pay Cycle” feature, which displays the time until the next payday and provides insights into expenses and income; “Bill Planner”, which helps customers manage expenses, and the new Bills account, which is designed to to simplify bill payments and budget allocation.

Another new feature, Spotted Bills, automatically searches for recurring payments and allows customers to add them to their Bill Planner to see what’s coming up.

UBank research shows Gen Z and millennials focused on saving

The changes from Ubank come as new Gen Z and millennial research, commissioned by the digital bank, revealed the top three most important banking features among respondents included low to no monthly fees (49%), competitive interest rates (39%) and an easy-to-use app (33%).

While 79% of survey respondents said cost of living pressures were making it hard to manage their money, two thirds of respondents (66%) still said they were confident they could continue to save and budget over the next 12 months.

The research also showed that among those with personal savings (80%), the overwhelming majority (82%) contributed some amount of their take-home pay to their savings.

Among this group of savers, 66% set specific targets and 72% had separate buckets. However, only 42% of savers said they have more savings compared to last year, and 25% said they have less than they did 12 months ago despite their efforts to save.

Mr Morrison said the results were not surprising. “Despite the ongoing cost of living pressures impacting younger Australians, what's heartening is that they remain optimistic about their ability to save.

"The research shows us that many young Australians are prioritising saving and implementing proven money management practices like setting targets and bucketing their money to reach their financial goals,” he said.

Highest ongoing savings rates for all adults on RateCity.com.au

(excludes kids accounts and young adult accounts)

Effective 1 July 2024

AccountRateMax balance for rateMonthly conditions for max rateBase rate
ME Bank HomeME5.55%$100,000Deposit $2k+ into linked bank account and grow savings balance.0.55%
ING Savings Maximiser5.50%$100,000Deposit $1k+ and make 5+ transactions in linked bank acct, plus grow savings balance.0.55%
uBank Save5.50%$100,000Deposit $500 into any Spend, Bills or Save accounts0.00%
MOVE Bank Growth Saver5.50%$25,000Deposit $200 into savings account each month and make no withdrawals.0.10%
BOQ Future Saver (14 - 35 year olds)5.50%$25,000Deposit at least $1000 and make 5 or more eligible transactions each month0.05%
Rabobank PremiumSaver5.45%$250,000Balance must be increased by $200 a month.1.50%
AMP Bank Saver Account5.40%$250,000Deposit $1k+ into savings account each month.1.20%

Compare savings accounts

Product database updated 14 Jul, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.