Updates to your savings rate
From today, you can earn up to 4.60% p.a. bonus interest across your combined savings between $0 - $1 million
From 1 October 2025, you’ll need to grow your combined balance across all your Save accounts (excluding linked offsets and excluding any interest credits) by $1 each month.
Until 30/9/2025, referrer and referee each receive $30 after referee makes 5 settled card purchases within 30 days.
Usually, referrer and referee each receive $20 after referee makes 5 settled card purchases within 30 days.
People with close to $250k are slightly ahead. It is a rate restructure, of course affecting savers with low balances.
Previous change was
Starting from 27 May 2025, you can earn up to 4.85% p.a. for total balances between $0 - $100K, and 4.40% p.a. for total balances between $100K - $250K. That means, if you have a total savings balance of $250K, your overall blended rate would be 4.58% p.a.*
yeh well not really considering most ppl with 1/4 of a brain will have the excess with another bank offering a better rate
It means it doesn't prefer savers with under $100k who can easily move money elsewhere. The limit is $20k per day without contact support for temporary increase.
This restructure hasn't taken the possible rate cut into account before October. It may be only 4.35% (or less) by then.
They told me in email only needed to increase by $1 a month.
That's for the October 1st Update, where you are required to 'Grow' the balance by $1 to earn the bonus interest.
Having to grow balance is worse for most people than making a $500 deposit. It means you can never withdraw any money without losing a month's worth on interest.
Unless you take it all out on the first day of the month and don't put any money in until the next month.
It's (having an increasing balance criteria) arguably the worst of the jumping-through-hoops that banks use - in effect, it turns a savings account into a faux term deposit, and increases the strike rate of account holders failing to earn their bonus interest and regress to the base interest of near-0%.
The bonus interest criteria set-up that banks use are designed to advertise higher rates and achieve much lower effective rates. Savings accounts in Australia have been cooked for decades now.
Personally, I will make increasing savings over about 1-3 months before withdrawing to my broker to make an investment (or other productive use of savings). My cash deposits are set at approximate maximums to ensure I don't hold too much of my portfolio uninvested. Generally, it isn't in most people's interest to have increasing cash holdings (unless you're a recent entrant to the workforce / other income earner who needs to establish some liquidity in their personal finance management).
I've been a UBank savings account holder for approx. 15 years and the USave has been my only consistent deposit holder amid innumerable changes over the years - this change (having a increasing balance criteria) will have me close my accounts with them by October 1. It was frustrating to read the update today.
@SomeGuyOnOzB: They've failed to make that clear AND muddied the waters by calling it "bonus" interest. It appears that there is 4.6% interest if you meet the growth criterion and ZERO if you don't. "Bonus" implies additonal interest on top of something which exists. Seems to be an intentional marketing ploy to cover up the fact that you'll get 0% interest if you don't grow the account.
This is by October. Will be mostly ditching the account as I hate T&Cs like this as I could easily forget one month and lose out on a heap of interest. Extremely sneaky.
Probably will migrate to Macquarie.
Look at ME bank 4.85%
@Gavman
Questions:
Is the savings account (HomeMe) isolated to their app (Me GO)? Is there any way to use a PC to do internet banking with this specific savings account, can you access it via a browser?
Despite marketed as HomeMe, it's not necessary to be saving for a property purchase, it looks like there are no restrictions on how you use the account, can you confirm?
@muwu: No restrictions on using it for Home saving - seems to just be a name as far as I can tell. I'll be shifting money there tomorrow I think - weird how UBank has gone so far down from being the clear leader.
@muwu: Yes you can use ME Go / Home ME on a browser at https://internetbanking.mebank.com.au/login
ME bank has two different internet banking websites, one for ME Go accounts and one for non-ME Go accounts.
Massive downgrade. Balances need to grow so you can no longer dip into savings for anything. I'm looking at Australian Unity Freedom Saver now, Macquarie also an option ?
A Unity only 50k before it dips to 4.5%.. look at ME bank 4.85%
Yeah im not fortunate enough to quite have 50k so Unity is the go for me.
I recently moved to macquarie from ING (too many hoops to jump through) and has been great so far. Really good banking app too.
Macquarie rates anen't great.. good for only 4 months then they dip
Macquarie is the highest / second highest (depending on balance) no-hoops account …
From my reading it appears you will be able to withdraw (and not replace) whatever interest you earn on your total Ubk accounts.
"For example, if your combined balance is $1,000 at the end of October, it would need to be $1,001 at the end of November (excluding any interest credits you may have earned)."
That differs significantly from ING for example because with ING you have to grow your SM account on the monthly total AFTER interest has been allocated. Practically speaking your Ubk account only has to increase by $12 over a year (actually $1/month).
Obviously you can withdraw as much as you need as long as you're prepared to forego a month's interest. Interest on say $100K is about $383/month (depends on days in the month), less your notional tax (~$95). So "typically" you'll forego roughly $288 in the month you don't meet the growth criterion.
Not mentioned in this deal is Ubk's 4 months welcome bonus for new users :
"New customers who meet our Welcome Bonus Rate eligibility criteria and bonus interest criteria can earn 5.00% p.a. on up to $1M of the combined balances of your eligible Save accounts for up to 4 months (a shorter period may apply to your Shared accounts, see the FAQs below).
This 5.00% p.a. Welcome Bonus Rate is made up of our Everyday Bonus Rate (which is a variable rate and subject to change) plus a fixed bonus margin of 0.40% p.a. (once applied to your Save accounts, this margin won’t change for you).
After your Welcome Bonus Rate period is over, your Save accounts will roll onto the Everyday Bonus Rate.
To be considered a new customer, when you sign up with us, you must not have held a Ubank product within the last 2 years.
Macquarie has their discounted gift card marketplace too. I use it for Woolies and Amazon and they’re always delivered immediately. Like I literally buy the Woolies ones at the self checkout for the exact amount I’m paying.
ING has a higher interest rate, 5% p.a.
ING shady as … plus they have hoops.. rather look at ME bank 4.85% only need to deposit 2k p/m no need to grow account, spend.
What is shady about ING?
Heard so many stories of ING freezing accounts bcos of 'suspicious activity'.. lack of staff, poor system .. ppl getting locked out accounts for weeks with no explanation or follow up.. no thanks!
@Gavman: Ive been with many banks, not had that problem with ING but Ubank would frequently lock us out of account when overseas, even when we notified them beforehand.
@Gavman: There can be issues with all banks where they place locks. There were issues with ubank with making big transfers, not happened for over a year though so probably ironed it out. ING actually have their offices located in Australia and usually get to talk to someone in Australia which is unusual. But yes ive heard of the closing account thing, as I have with all banks though.
@Gavman: There are good reasons why some accounts are booted, cash mules being just one.
https://www.smh.com.au/national/no-id-necessary-accounts-mak…
Been with ING for years with zero issues and have always had quick replies to online queries through account messaging, and phone calls.
Up until 30/9, the $500 monthly deposit (no increase) is required.
From 1/10, the $1 increase is required.
From today, adjusted (lower) rates.
Yep.. Sack File for me.. they obviously have too much money to lend, they don't need more.
From today, adjusted (lower) rates.
and up to $1m now (previously up to $250,000)
When i have $1m maybe ill give a fk
terrible bargain
But I'm glad OP posted because I knew someone (Gavman) would tell me where to move to next :)
Not a deal, worse interest rate than many other banks offer
And better than many other banks. Interest isn't the only criterion you should use when choosing a bank, as comments on Ozb show.
It's also worth remembering that the govt guarantee only covers up to $250K
Rabobank is better
Rabobank is really annoying to use with no OSKO and only being possible to send money out on weekdays, on the plus side they can take money in by direct debit to bypass the daily sending limit of other banks.
point - the govt guarantee only covers up to $250K
Really not good, dumped a heap of money there hoping it would stay and now need to look at other options.
The appeal of the account for me was being able to dip into savings without having to increase the balance each month. Will likely switch to Macquarie.
Same here but macquarie tend to be among the lowest unfortunately. Just need one to dump and leave, and be able to touch if needed.
Macquarie is one of the highest without jumping through hoops. Pretty much most accounts above Macquaries rate either have tiered rates, have to make 5 transactions with a pair transaction account/card, deposit $x amount per month, or grow the account balance by $x.
Aus Unity 4.85% on 50k before it dips to 4.5%.. look at ME bank 4.85% up to 100k
The last seven years have been good uBank, but now you've gone and done this… it's not me, it's you…
Went downhill since NAB acquired 86400 and merged it with ubank.
Damn. I've been banking with uBank since 2006. This needs end before October.
Other than ING or ME Bank—- are there any banks/CU that offer high interest savings account without the horrible "withdraw funds and we steal your interest" terms?
If you are with ING or ME bank —- do you recommend them for everyday use?
Thank you for the comprehensive sheet…
…Macquarie does seem to the best no bulls#it path to savings glory
Macquarie has a 4.85% intro rate for 4 months up to $250k. 4.5% ongoing up to $1m. Their app is decent too.
NOTE: You can also send external payments (PayID and BPay) directly from the savings account. So you can schedule payments and sit funds in the account to send when required. UBank disabled this ability a while ago.
You can also pair a transaction account with this which has a 2.25% interest rate.
That's good info, thanks
ING has a much more onerous growth criterion. Their online facilities are excellent for my everyday use but they should have two factor login imo, esp as the print your account number on the Everyday Debit card (yes, really)! I scraped it off and told them it was an appalling idea.
Worst bank ever since NAB took over the process. Bewead your account can be closed without any notice and no explanation.
Same for all banks
Started to use the accounts again a little bit recently. But with the rate reduction and having to grow balances by $1 it won't be used again. Sneaky way to drop their rates for majority of their users and trying to market it as a positive.
They made it more difficult to use the savings accounts by disabling external payments or transfers from the accounts. Effectively losing a days interest moving it out to the Spend account for a scheduled transfer or something.
Enshitification…
Will be moving my savings elsewhere. Probably mebank.
Does anyone know if the me bank bonus interest rate applies to the first month? Or do I need to deposit 2k in month 1 and then wait for month 2?
I had it for a while. Pretty sure they gave it for the first month, as long as you met that criteria within that month it counted for the following month too.
Honestly though, have a look at Macquarie Bank. After the intro period, 4.5% ongoing, no hoops and can send transfers/schedule payments from the savings account (just checked my old HomeME account and you can't do this, have to send to the SpendME account first).
Any accounts with hoops means you can lose a month's interest. i.e. if you don't deposit the required amount into the HomeME account, you lose the following months interest. Macquarie has none of that and you can have a spending account with a debit card attached with a 2.25% interest rate too.
Yeah I considered Macquarie but I don't mind a deposit hoop as I have other bank accounts with the same hoop so I just cycle through a payment once a month.
Boo ubank
I was saying Boo-ubank
Increased balance limit to $1m for bonus interest is good, but having to grow balance from Oct is bad.
Thanks OP for the post, it's good to read the discussion of alternative options here.
Ok set reminder end of october to move all $ out.
Interest rate dropped today
Move it out now to send them a message
I'm moving my money out elsewhere. You can get better than 4.6% at a lot of other institutions.
I'll be signing up to BankWest and shifting my money from UBank starting next month (BankWest is currently 5.15% for 4 months, up to $250,000)
3.60% standard for that Bankwest account, for everyone else asking the next natural question
Bankwest have another account @ 4.10%, with no withdrawals criteria
Ubk new account bonus is 5% for 4 months up to $1M for regular money movers.
Can't have had any ubank accounts open for 2 years to get 5%
RIP
Grrrrr, more micro managing.
Not a good deal, as soon as you need to dip into your savings you'll loose up to a month's worth of interests.
IMO avoid ubank, they've been consistently worsening their products for a long while now..
Not a deal when going to lose on current interest income. Time to switch.
5.5% to 4.6% since I've joined booooo
Similar drop for all banks.
For anyone else thinking about jumping ship, there is this spreadsheet: https://www.accountsleaderboard.au/
But as per the comments in this thread, ME or Australian Unity (some hoops) or Macquarie (no hoops) are probably the best alternatives.
EDIT: also thanks to @Joe1835 for posting the "deal" originally. It's a good place to discuss alternatives; please don't take the downvotes personally.
Thanks! I wouldn't take it personally. I guess i should have posted it in the forum section instead, but im interested in the discussion to try find a better bank too
Glad to hear it. I wouldn't have seen it in the forum, so it's perfect here IMO. Thanks again.
The ubank change was actually posted in the forum section a few hours before your deal post, and the discussion has continued with 300+ comments so far.
There's no hoops at all to Aus Unity. You just dont get as a high a rate above 50k.
Thanks, good catch. I'll edit.
EDIT: ugh, won't let me edit now. Oh well
And Rabobank and Bankwest introductory rates for those who are eligible
also thanks to @Joe1835 for posting the "deal" originally
Seconded, @Joe1835
There's value in negs too!
Thanks OP, for posting something worth negging.
UBank had been my primary saver since 2010 generally offering higher rates without many hoops, it's been 15 years and now it's time to move on 😢
You are about to cast your first negative vote on OzBargain.
😲 Wow…just lost my negative vote virginity after 92 deal votes, 9 posts, 829 comments & having been an OzBargain member since 2019 😲
Good deal for those who've reached the threshold and don't want yet another bank account.
Thanks for posting OP, comments make these "deals" worthwhile.
UBank was also my preferred savings bank. But won’t be from 1 Oct due to having to grow balance. Hello Macquarie.
Interest rate dropped from 15th July…
Interest tier
Savings between Everyday Bonus Rate before 15 July 2025 Everyday Bonus Rate from 15 July 2025
Tier 1 $0 to $100,000 4.85% p.a. 4.60% p.a.
Tier 2 $100,000.01 to $250,000 4.40% p.a. 4.60% p.a.
Tier 3 $250,000.01 to $1,000,000 0.00% p.a. 4.60% p.a.
Tier 4 $1,000,000.01 and over 0.00% p.a. 0.00% p.a.
Which bank can I move to that allows me to open multiple accounts? I like to have a few to save for different goals?
So no more $500 deposit per month? Requires only $1 deposit per month?
I read it that way, but the balance MUST increase by $1 by end of month. So say you dip into your savings on a particular month, practically all interest lost for that month. Balance increase does NOT include interest earned from prior month.
Same as ING, and was the main reason I moved to UBank. F U NAB / UBank you greedy bastards.
I was looking at HomeME + SpendME (owned by BOQ) but they are also known to pull similar shenanigans.
Macquarie it is.
Yep, opened a Macquarie savings account yesterday, set my scheduled payment to go from there and will sit what I need in there moving forward. Closed some excess UBank accounts and will most likely close all of them shortly as I have absolutely no need for them whatsoever moving forward.
All they've done is reduce their rate from 4.85% to 4.60% to 100K and the RBA hasn't moved.. BOOO