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.
I moved my savings/bill money to Blossom ages ago, only use ubank for transactions because the app is good.
For others not having heard of Blossom, too…
Be sure the read through the PDS.
It is not a cash deposit with an authorised deposit-taking institution. It will have a very different capital loss risk and return profile.
It's a fund that uses a trust structure to hold various different types of fixed income products including bonds (government and corporate) and derivitives. Investors (not deposit-holders or "savers") will hold units in this fund when they make capital investments (not deposits) of which the fund management's aim is to achieve the product objectives as advertised, which is up to the advertised return (not interest rate) and meeting liquidity rules. The fund has a MER (management fee) of 1.3% per annum, which they seek to achieve above the advertised returns and have some room to waive if needed. Withdrawals are already limited by the fund rules, but they have the discretion to freeze withdrawals for up to 21 days to address issues with liquidity. The capital (your "deposit") has a risk of loss according to the risks of the underlying assets, in this case the bonds and derivitives.
In other words, if you want a guarantee on your capital (i.e. savings) and on-call liquidity, be sure to use an account that is a cash deposit with an authorised deposit-taking institution (typically a bank).
If you want to invest in fixed income products like bonds, be sure to do a lot of research on how these products act in their respective markets and understand their underlying risks.
Thanks for the quick summary and highlighting Blossom isn't a savings account
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
Govt will have depositors bail-in the bank before the govt bails-out the bank. We will be holding worthless shares in a failed bank. Govt guarantee is just a hope and a prayer.
The $120B bailout during the GFC says otherwise, but believe whatever you want.
@Igaf: Thats exactly why the EU implemented bail-in policy, and countries like Australia have similar policies. Ask your AI friend for a few points:
"Australian banks are subject to "bail-in" laws, primarily through the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018.
What is a bail-in?
A bail-in is a mechanism where a failing financial institution is recapitalized by its own creditors, rather than relying on taxpayer-funded bailouts.
It involves converting certain liabilities (debts) of the bank into equity (ownership shares) or writing them off entirely to absorb losses and restore the bank's financial stability.
Key aspects of Australian bail-in laws
Crisis Resolution Powers: The 2018 Act grants the Australian Prudential Regulation Authority (APRA) enhanced "crisis resolution powers" to manage distressed financial institutions, including banks and insurance companies.
Conversion and Write-Off: These powers include the ability for APRA to direct the conversion or write-off of certain capital instruments (like bonds and hybrid securities) issued by banks to absorb losses in a crisis scenario.
Self-Managed Super Funds (SMSFs): Some sources suggest that cash savings held in SMSFs could potentially be subject to conversion or write-off under the bail-in laws.
Government Support Remains an Option: Despite the bail-in framework, the Australian authorities maintain a pragmatic view that government support for systemically important banks remains a viable option to ensure financial system stability.
Deposit Guarantee Scheme: Australia has a Financial Claims Scheme that guarantees deposits with authorized deposit-taking institutions (ADIs) up to $250,000 per account holder, per ADI. However, some have raised concerns about whether this guarantee would be sufficient or readily accessible during a crisis.
No Explicit Exclusion of Deposits: While the Australian bail-in legislation doesn't explicitly exclude deposits from being subject to conversion or write-off, government statements and expert opinions indicate it's highly unlikely that retail deposits would be impacted given APRA's mandate to protect depositors' interests and the potential for market panic.
Concerns and ongoing debate
Some critics and commentators express concern about the potential for deposit accounts to be included in a bail-in due to the broad wording of the legislation and the lack of explicit exclusion.
There have been calls for legislative amendments to explicitly protect bank deposits from bail-in actions.
It is important to note that while the potential for bail-in exists, the Australian government and regulatory bodies have consistently emphasized their commitment to maintaining financial stability and protecting depositors. "
@reactor-au: If a bail-in is exercised, it sounds like it would primarily affect holders of corporate bonds in the affected banks. Which is many of us, considering our super accounts and, for some, investment accounts outside of super and managed funds. But it would affect many, including institutional investors and foreign investors.
It sounds much less likely to affect deposit-holders, even if possible, considering policies on protecting ADIs and supporting spending during economic downturns.
@muwu: Yes that is the first that would be used, but its vague enough that deposits could be used too. There have been numerous submissions to parliment to have deposits excluded in the wording but nope, since 2018 its still vague.
And if you think they wouldn't do it, well I don't think anyone in the EU thought it would happen, until it did.
@reactor-au: I wouldn't implicitly trust what any AI engine harvests on any topic, let alone one which has considerable nuance and complexity attached. The FCS specifically lists what types of accounts are guaranteed, and accounts discussed here fit firmly into those categories. Bail-in laws are FAR more complex and exist to facilitate considered crisis mgt and resolution under the Banking (Prudential Supervision) Act 1989 and Deposit Takers Act 2023. They exist essentially to stop/limit internal and external operators from sending FIs to the wall while aiming to protect depositers (see the new Depositor Compensation Scheme) and creditors. Where possible. Nothing in finance is 100% guaranteed.
With the recent history of QE measures, governments have seemed willing to increase debt to lessen the effects of economic downturns and avoid recessions.
What effect would a bail-in, compared to a bail-out, have on the macroeconomics of a threatening recession, if masses of the population lose their cash savings?
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!
All they've done is reduce their rate from 4.85% to 4.60% to 100K and the RBA hasn't moved.. BOOO