Some fairly biggish changes to how interest works for Up bank customers, got this notification today:
Grow & Flow
From September 1st, 2025, we're changing the way Upsiders earn interest.
Introducing Grow & Flow: a new interest system designed to help fast-track your bigger savings goals, while keeping your everyday spending flexible and still earning along the way.
To qualify for interest, just make 5 successful card purchases in a month-no deposits required. Once activated, eligible Savers will earn the Grow Rate, up to a balance of $250K. If you spend or withdraw from a Saver, that Saver will switch to the Flow Rate for the entire month.
If your combined eligible Savers balance exceeds $250K, you'll earn the Grow Rate on the first $250K, and the Flow Rate on any amount above that.
Grow Rate: 4.85% p.a. (variable)
For Savers you're setting aside to grow and flourish. Earn this higher rate on any eligible Saver you don't spend or withdraw from during the month, up to a balance of $250K.
Flow Rate: 1.50% p.a. (variable)
For Savers you use day-to-day. Earn this rate on any eligible Saver you spend or withdraw from during the month.
With Grow & Flow on the way, now's a good time to check in on your Saver setup. Some might be for everyday spending, while others could be set aside to grow and earn the higher rate.
For more info on Grow & Flow, head to: https://up.com.au/grow-flow/
For more info on the upcoming changes to our T&Cs, head to the 'Bank Changes' thread in Talk to Us.
For our current pricing (as it stands before 01/09), head to: https://up.com.au/pricing/
It was already the case that you didn't accrue until the day after you had used your card 5 times for the month, now at any point when you move any amount out of a saver, the whole savers balance gets downgraded to 1.50% interest.
This will be easier factoring how often the app bugs out and can end up transferring the wrong direction between accounts, at least that happens to me sometimes.
From what I gather, the whole rest of the month accrues no more than 1.50% for everyday after you make one outbound transaction, even if it's just taking the interest you receive at the start of the month.
The only workaround I can think of, if you want your interest and your interest rate in the same month, is to make a new saver and transfer the whole balance each month. Not completely sure if that will save the interest.
https://www.ozbargain.com.au/node/917601