ubank Double Dipping Cuts to Savings Account (Down from 4.6% to 4.35% Effective Today)

scalebearer on 19/08/2025 - 12:54
Last edited 19/08/2025 - 13:12 by 1 other user

They cut again today for August after already cutting in July.
No notice at all, just an email saying this 2nd cut is effective from today.

I thought ubank cut early in July in anticipation of the RBA cutting, but they've decided to cut twice.
Once for the widely anticipated but non existent cut in July and again this month for the actual RBA cut.

Given this and the new grow balance requirement coming up in October, I don't think ubank want most of their customers anymore, or at least, not the ones they appreciate a reasonable rate of interest relative to how onerous the hoops are for qualifying.

The assimilation of 86 400 by the NAB monster has been complete.

A reminder for people who want a no or low hoops savings account to replace ubank:

Macquarie Bank offer 4.25% up to $2 million with a small temporary rate boost for the first few months for the first $250k as a sweetener.
No hoops.
Their mobile app receives good feedback from people who already bank with Macquarie.

AMP also offer 4.25% with no hoops, but only up to $250k.
Largely uncompetitive with Macquarie, but if you're a millionaire, your Macquarie account is overflowing and you want a 2nd no hoops offering, this is it.

ME Bank offers 4.6% up to $100k for a $2k monthly deposit, no balance growth required.
Much like their BoQ parent company, the external deposit must go in the transaction account.
Bypassing this and depositing straight into savings does not count.

Australian Unity offers 4.6% up to $50k and 4.5% up to $250k with no hoops.
They lower the rate for the entire balance if you end up in a new "bracket".
I.e. A balance of $50 000.01 will receive 4.5% for the entire balance.

None of these are a full replacement for 86 400/ubank before these recent changes.
We just have to adapt and move on.

Financial Bank Account Savings Account

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Comments

  • Fredfloresjr on 19/08/2025 - 13:07
    +37

    Just move, not worth the hassle. TLDR

      • No ONE on 20/08/2025 - 19:35
        +1

        Hence you cant just deposit $500 then withdraw

        Not true. You can deposit and withdraw $500 as long as your new month's closing balance is higher than previous month.

      • scalebearer on 20/08/2025 - 22:06
        +13

        This is the 3rd RBA rate cut this year and uBank has reduced thier rates 3 times accordingly.
        So NO OP. uBank is NOT double dipping.

        As already explained, the RBA was widely expected to make a cut in July, but it didn't happen.
        Despite this, ubank cut their savings rate from 4.85% to 4.6%.
        Most of their competitors did not.
        Therefore, they effectively pocketed an extra 0.25% as additional margin.

        In August, the RBA did cut.
        ubank decided to double dip and cut again from 4.6% to 4.35%.
        They weren't happy with pocketing the extra margin from cutting 0.25% a month early, they wanted this extra margin to be permanent, so they cut again.
        Most of their competitors only cut once, which pushes ubank's savings offering down the rankings.

        uBank gave very prompt notice of the rate change both by email and on thier web site

        ubank delayed passing on RBA rate rises to their savers by at least a month when inflation was rising and the RBA was raising rates.
        Now they are changing interest rates with zero notice.
        They are emailing people on the same day the rate change takes effect.
        This is not an upside as you are trying to imply.

        AMP "no hoops" is also totally incorrect.
        With the AMP saver account they pay a handsome 4.45% up to $500K.
        However you must grow your balance by $250 in the month and the bonus doesnt apply until the following month .

        With the AMP Go account it does pay 4.25%

        You have accused me of being "totally incorrect" before proceeding to mention the very account I was talking about.
        It is unlikely that any ubank customers who are unhappy about the new upcoming conditions for bonus interest would be looking at an account with a lower rate with a similar balance growth condition.
        It should have been obvious which account I was talking about, given the interest rate and conditions (or lack thereof, in this case) that I specified.
        You have deliberately conflated the two AMP savings accounts to grandstand and seek attention.

        So no online access, no atm access, no cheques
        And you need an AMP Go transaction account

        Given that the suggestions are targeted towards ubank customers who may be looking for alternatives, not having a physical presence and other legacy banking services are not likely to be issues for them.

        So no online access

        How exactly do you think the AMP GO mobile app works?
        Do you think it would work without an internet connection?

        And you need an AMP Go transaction account

        ubank opens two accounts for you when you sign up, one of which is a transaction account.
        You cannot opt for just one of them.
        Some of their competitors have this as well, such as Macquarie and ME.

        Raising this as a downside is a rather moot point, unless you are comparing it to AMP's legacy offerings, which used to (or may still) allow standalone savings accounts to be opened.
        It's also largely irrelevant unless the bundled transaction account has fees simply for being open.

        Because it seems that OP has got quite a few things WRONG in thier rant

        I don't see how any of this could be constituted as part of a rant and you should be careful with your own glass house before throwing so many stones around.
        You have made multiple factual errors yourself as detailed above.

  • nubzy on 19/08/2025 - 13:12

    I moved mine back to ING for now

    • chriskq on 20/08/2025 - 14:51

      Any tips for the 5 monthly transactions required? This is the thing i find difficult with ING. Currently all savings with Mac high interest.

      • Robot JP on 20/08/2025 - 15:15
        +3

        Split payment 1c at coles x5 times

        • chriskq on 20/08/2025 - 15:42
          +1

          does this really work!!! can you do at self service checkout?

          • Robot JP on 20/08/2025 - 15:59
            +2

            @chriskq: Theoretically, yes but I haven't tried. Just a cheap suggestion

          • ippy on 20/08/2025 - 17:40
            +4

            @chriskq: I can confirm it works. Yes, do it at the self serve.

            • chriskq on 20/08/2025 - 22:29
              +1

              @ippy: Thanks - waiting on my ING debit card to be sent - will hopefully try this weekend.

          • TightLikeThisx on 21/08/2025 - 08:34
            +4

            @chriskq: Yes. At Coles you have to select split payment then card after that for each 1c transaction. I don't do 1c but I do break up payments for say a carton of milk to satisfy the requirement.

            Someone else on here did a post about jumping through hoops and they said what they do is 5 online transaction at Bunnings for a single screw and opt to do click and collect. Apparently these count and if you don't pick up the item the transaction gets reversed the next month.

      • nubzy on 20/08/2025 - 16:21
        +2

        Not that hard. Mostly use cash, but I use my ING account for occasional purchases and a few direct debits. And yes you can do 5 split transactions at self checkout to get it out of the way.

      • PissLUR on 20/08/2025 - 17:56
        +3

        5x $1 Amazon egift cards.

      • Oztx on 21/08/2025 - 08:16
        +4

        Introvert: Buy 5x low denomination GC from shopback/cash rewards online
        Extrovert: Split Coles/Woolies monthly grocery bill and pay 5x $0.1 and the rest on your "real" card that you want to pay with

      • donotuse on 22/08/2025 - 21:43

        Split payment COLES and WOOLIES

    • foodsnob on 20/08/2025 - 18:17
      +1

      i do 5 transactions to top up my public transport card

      • chriskq on 20/08/2025 - 22:44

        This is a great idea - thanks for sharing!

    • Grimace on 21/08/2025 - 15:56

      ING have ridiculous hoops and terrible service.

  • andreroo on 19/08/2025 - 13:16

    I'm gonna be moving all my savings to Westpac, their Spend and Save interest rates are now better value than uBank's. And to think I moved everything over to uBank a year ago because of their superior interest rates😔

    Westpac Spend and Save is 5% for the first $30,000 and 4.50% for the remaining balance so I'll be better off. it was fun while it lasted uBank, I have to admit their app is nicer than Westpac's though which is a bummer.

    • apsilon on 19/08/2025 - 14:25
      +6

      Given how bad the Ubank app is the Westpac one must be complete rubbish but then Westpac is the most technologically inept of all the Aust banks so I guess shouldn't be surprising.

      • andreroo on 19/08/2025 - 14:36
        +5

        honestly, I just liked the aesthetics and smoothness of the ubank app overall LOL. I'm actually fine with the westpac app, it gets the job done and I've never had an issue with it

        • Pigey on 19/08/2025 - 14:45
          +5

          I like the ubank app too. It's my favourite one out of all the major banks. And PayID actually is instant to new recipients, unlike CBAs.

        • KangaDrew on 19/08/2025 - 16:01
          +13

          Yeah, I agree. I'm not sure why the ubank app gets so much hate. It's slick, it's fast, it's easy to navigate.

          If anyone wants to see a shitty app, check out Bankwest's redesign. It's absolutely HORRENDOUS! I reckon some head honcho at BW must have a 15 year old studying app design, so they outsourced it to find out just how stupendously ass-backwards they could make it.

          Mission accomplished.

          • deliriouss on 20/08/2025 - 11:29
            +1

            @KangaDrew: Cannot agree more, funnily enough the version they had before the rebranding was heaps better. Moved my money to a different bank after being a loyal customer for years, as I cannot stand the new app.

            • KangaDrew on 20/08/2025 - 12:04

              @deliriouss: The only "issue" (if it can even be called that, as it's basically a first world problem) was the UI. Sure, it was a little bit dated, but not dated to the point where a completely redundant redesign with zero logic behind it could justify the change. And there's absolutely no argument anyone at Bankwest could use that would legitimately defend the move, because they kneecapped functionality to the point where the app is good for one thing and one thing only - making payments and moving money around. Removing the ability to search transactions is indefensible.

    • lovesabargain77 on 19/08/2025 - 19:25
      +6

      I'm gonna be moving all my savings to Westpac, their Spend and Save interest rates are now better value than uBank's

      Sounded good until I saw it's only available to 18-29 year olds

      • andreroo on 19/08/2025 - 21:30
        -8

        yeah, I've got a good few years of it at least before I have to use the regular accounts like you oldies HAHA

    • Oztx on 21/08/2025 - 08:18

      Westpac Spend and Save is 5%

      No hoops and no salary deposit requirements?

      Edit: Only 18-29-Year-Olds

    • About The Woolongs on 25/08/2025 - 16:02
      +2

      Westpac changed it to 4.25% without informing their customers.

      I spoke their customer helpline and they said they are not required to inform their customers of any interest rate change, it is up to the customer to check their website to see if there have been any changes.

  • hasher22 on 19/08/2025 - 14:09
    +14

    Move, ubank is useless now.

  • JIMB0 on 19/08/2025 - 14:25

    Those bastards.

    • Neoika on 19/08/2025 - 14:47
      +6

      You are one of the seven who upvoted the deal last month.

      • payless69 on 19/08/2025 - 17:03
        -6

        Must users here voted for him too:

        https://www.youtube.com/watch?v=5DkF8IV5uiU

        • Grimace on 21/08/2025 - 15:55
          +1

          Mate shouldn’t you be catching up on some Sky News after dark clips on YouTube?

          • payless69 on 21/08/2025 - 16:12
            -1

            @Grimace: Funny, Sky dumped Erin Molan. Now she made small meat out of them and they are playing catch up.
            Who cares. Let the lefties go broke to Gerry gets another horse…..

  • Gdsamp on 19/08/2025 - 15:41
    +5

    BOQ just droppem for future saver, 4.85%
    Of course without any notification just have to manually check in account….

  • KangaDrew on 19/08/2025 - 16:03

    ME Bank offers 4.6% up to $100k for a $2k monthly deposit, no balance growth required.
    Much like their BoQ parent company, the external deposit must go in the transaction account.
    Bypassing this and depositing straight into savings does not count.

    Does anyone know if you can tap and go with ME Bank? i.e. dump 2k into the transaction account, move it to savings and then send it somewhere else? Will doing so meet their criteria? Cheers

    • surfingedge on 19/08/2025 - 19:37
      +2

      Yes, you can put 2k into SPEND ME from another bank (including myBOQ) then immediately send the 2k somewhere else and that will qualify.

      • KangaDrew on 20/08/2025 - 16:14

        Legend, thanks!!!

    • scalebearer on 19/08/2025 - 17:10
      +7

      It's a little over 300 words and would take most people around a minute to read.
      If that's your definition of a "long post", that says more about you than anyone else.

      ~2/3rds of it are suggestions for alternatives to ubank with brief outlines to explain the most important differences.
      If you wanted to find a replacement yourself, you could have skipped that part.

      On top of all that, you are suggesting MyState as an alternative, but couldn't be bothered to state the interest rate.
      The people who are fine with 5 monthly transactions for bonus interest are not the same people who want a low or no hoop savings account, which is what the banks in my list are and what ubank used to be.

  • Drakesy on 19/08/2025 - 17:23

    Off to Rabobank we go oh and dumping into ETF"s atm.

    • payless69 on 19/08/2025 - 18:21
      +1

      any fav's ETF you suggest?

      • onetwothreefour on 19/08/2025 - 19:37
        +3

        VGS

        • Drakesy on 19/08/2025 - 19:42
          +1

          And vas

          Or just DHHF and it takes all the guesswork out of it

          • onetwothreefour on 19/08/2025 - 19:44
            +3

            @Drakesy: I have VAS too but my VGS has outperformed my VAS by far over the past 4 years I have been investing.

            • Drakesy on 20/08/2025 - 09:50

              @onetwothreefour: Yeah agreed, VGS is going great compared to the Aus market.

              Just with Trump in control i don't think there's much upside left.

              • onetwothreefour on 20/08/2025 - 18:10

                @Drakesy: Yeah you never know, hopefully it keeps going strong but that is why we diversify.

      • SBOB on 19/08/2025 - 21:19
        +1

        DHHF and chill…

    • Deals For Days on 20/08/2025 - 14:03
      +1

      You should have gone for the rate cuts 👊

    • payless69 on 22/08/2025 - 04:46

      Why?

  • Iggemo on 19/08/2025 - 20:53
    +1

    Geez Macq is only 4.25 now? Unity Freedom Saver thing it is, i guess.

  • jaboday423 on 19/08/2025 - 21:32

    Macquarie Savings Account (No monthly hops; just require a transaction account in order to open savings account)

    Stepped variable interest rates
    Rate on your first $250,000 -> 4.60% (First 4 months and then resets to 4.25%)
    Rate on balance between $250,000.01 - $2,000,000 -> 4.25%
    Rate on balance above $2,000,000.01 -> 2.00%

    • smartialarts on 21/08/2025 - 08:37

      4.6% is only for the first 4 months. I am too old to be hoping banks every quarter or so.

  • jizmo on 19/08/2025 - 23:59
    -1

    I shifted some of my gazillions over to Macqaurie, but what I've just found out is, if you pull your ding dongs out of an overseas ATM the MasterCard is a lot higher international fees than Visa. If I need to take some of my moolah transfer it back to Ubank then take it out of the overseas ATM through Ubank.

    • SBOB on 20/08/2025 - 06:42
      +4

      MasterCard is a lot higher international fees than Visa.

      Which fees? Ones charged by the ATM, as the exchange rates MasterCard and Visa charge are almost identical

      https://www.visa.com.au/support/consumer/travel-support/exch…

      https://www.mastercard.com/global/en/personal/get-support/co…

      • Mugsy on 20/08/2025 - 08:01
        +2

        ^ This

        I saved those links on Dad's phone browser a while ago and told him to check the rates of VISA and MC before getting cash out at an overseas ATM and use the card with the better rates.

        He just uses Macquarie now as the rates are so similar… it's not worth the time spent doing the check when one needs to get cash out after getting off the plane when they also need to get their luggage, figure out how to navigate through a new airport, ensure their paperwork is filled correctly, have their passport ready, check that the esim is working, and find a toilet to relieve themselves.

        • McFly on 20/08/2025 - 18:21

          Not necessarily in that order.

      • jizmo on 20/08/2025 - 14:12
        -1

        $6 USD VisaCard Fee
        $10 USD MasterCard fee
        Some supermarkets won't even take MasterCard payment when I go to check out as well. Only Visa or Cash

        • SBOB on 20/08/2025 - 18:04
          +1

          This seems like very country or location specific info, rather than blanket overseas/foreign exchange rate information

          • jizmo on 20/08/2025 - 18:08

            @SBOB: I wasn't talking about the exchange rates. The international transaction fee for the service to get the money is higher I've found.

            • SBOB on 20/08/2025 - 18:53
              +1

              @jizmo: Got examples where or in what country/use case you saw these 'fees'?

              There are some countries where MasterCard isn't accepted, but these aren't common, and it's not a 'blanket' comment that you can apply as a general statement.

              eg Walk up to an ATM at selected country and withdraw cash, and there is no difference in "fee" presented regardless of the cc provider ive used for the multiple countries I've tried it in over the years (though I try to focus on ATM providers in countries with $0 or minimal fee anyway)

              Japan, 7-11 located ATM for example, would seem to contradict your claim, with higher fees on visa than MasterCard

            • cheesecactus on 21/08/2025 - 21:43

              @jizmo: What fee are you talking about? I've never heard of a $6 USD Visa/ $10 USD MasterCard fee. And i've used both overseas.

              Sure youre not thinking of a specific ATM or specific store fee?

    • surfingedge on 20/08/2025 - 07:10

      Visa is usually higher, but since both publish their rates in advance, if you really care you can just look up the rate immediately before you spend/withdraw.

      • Ade99 on 20/08/2025 - 08:23

        Visa and M/card track each other with some currencies being better on one and then the advantage switches, often based upon which way the "margin" winds were blowing that day.🤔

        • surfingedge on 20/08/2025 - 08:30

          I have zero idea how v and mc trade currencies but I have monitored their exchange rates for the past 5 years and for the transactions I have made, it has been cheaper to use a mastercard for 80% of the time.

  • umoddbro on 20/08/2025 - 08:49
    +3

    I've moved to Macquarie already

  • ForeverInBlueJeans on 20/08/2025 - 10:59
    +1

    New customers - no cut they still get 5% for 4months,

  • Hangryuman on 20/08/2025 - 11:26

    We're moving our savings from UBank to Macquarie savings around 1 Oct when the new 'no interest per month unless total balance increases' cuts in. Only 0.1%pa lower interest, so no biggie.

    and you can have direct debits from the MB high-interest savings a/c, not having to jump through the hoops of the two-step having to move funds from UBank high-interest Save a/c ZERO interest Spend a/c before you can pay anything - what a WOFTAM !

    UBank has irritated us with their annoying changes for the last time …

    • Grimace on 21/08/2025 - 15:52
      +4

      Just move to Macquarie now, their current honeymoon rate exceeds Ubank’s standard rate so there’s practically no reason to leave cash in UBank.

      • Hangryuman on 22/08/2025 - 12:53
        +1

        I like that idea - thanks for the suggestion !

  • Captain Hindsight on 20/08/2025 - 11:56

    I thinking Australian Unity but every time I join a bank lately they drop rates so anyone know if they have recently dropped or heard if they will? TIA

    • Costanza on 20/08/2025 - 12:05
      +4

      Australian Unity Bank transition to Bank Australia, scheduled for Monday 24 November 2025.
      https://www.bankaust.com.au/australian-unity-acquisition
      These takeovers are rarely good for customers.

      • Captain Hindsight on 21/08/2025 - 14:31
        +2

        AU they just dropped their rates today 😢

      • archiexyz on 17/10/2025 - 00:11

        Just saw their updated transition booklet today - looks like the freedom saver will be maintained post transition - not sure if it will be opened to new bank Aus customers or just migrated customers

    • McFly on 20/08/2025 - 18:27
      -1

      Switch to Aus Unity.
      Not sure how good they are but I don't have any money with them!

  • tamckinnon on 20/08/2025 - 15:35
    +1

    It's to pay for the new marketing campaigns, no doubt.

  • cbkg212 on 20/08/2025 - 16:12
    +5

    AMP is the worst bank I've ever had the displeasure of signing up to. Avoid AMP like the plague is my advice.

    • payless69 on 22/08/2025 - 04:49

      Perpetual is even worse.
      But AMP fanboys keep negging me.

  • Herbs on 20/08/2025 - 17:21

    Yeah, ubank no longer competitive, I moved on at the beginning of August.

    • Logical on 21/08/2025 - 06:51
      +1

      To where and what value are you actually talking about?

      • Raj09 on 22/08/2025 - 09:52

        I moved majority of funds to Macquarie and use less than $500 in ubank to get benefits of no fee transactions etc.

  • matt-ozb on 21/08/2025 - 06:37

    Isn't 4.35% with Ubank better than 4.25% with Macquarie?

    • Iluvfreebies on 21/08/2025 - 06:46
      +1

      Macquarie has no hoops.
      Ubank requires $500 deposit and balance grow pm by $1

      • matt-ozb on 21/08/2025 - 07:12
        -1

        Hmm, bit of hassle but doesn't seem like a disaster.

        Fwiw .. I've been happy with Ubank and recently opened Macquarie acct .. not really sure why now

        • Iluvfreebies on 21/08/2025 - 08:56

          That depends on your personal situation if liquidity is not an issue for you, ubank would be a better.

          • Hangryuman on 21/08/2025 - 11:20
            +2

            @Iluvfreebies: The new UBank rule for 4.35% wef 1 October is you will get ZERO interest for every month that doesn't show an increased balance after interest by at least $1 over the previous month's end.

            That means you will lose around 0.36% interest for every month you don't have an increased balance

            So if you take money out for even 1 month only in a year, that reduces your total interest for the year to say 4.35% - 0.36% = 3.99% from UBank

            whereupon Macquarie's 4.25% beats UBank

            • JayJay04 on 23/08/2025 - 17:19

              @Hangryuman: If you aren’t going to increase your balance for the month you’re not going to leave your money in ubank at 0% for the whole month so your calculations don’t really make sense, you would just move it elsewhere in the first few days of a new month after receiving the previous months interest

          • Grimace on 21/08/2025 - 15:50

            @Iluvfreebies: Even still it’s encouraging you to park all your spare funds in cash when you should be investing most of said funds in assets that actually grow a bit above inflation.

            The only time I can think of where it would be better to take Ubank’s slightly higher rate despite the hoops is if you’re saving up for something in the short term you’ve gotta pay for in cash.

      • poppingtags on 21/08/2025 - 12:56
        +2

        The grow your pm requirement starts in October right? Need to time my exit to avoid that bs

        • capslock janitor on 21/08/2025 - 17:16

          will there be new penalty for withdrawing ?

          • poppingtags on 21/08/2025 - 17:17

            @capslock janitor: What sort of penalty? I wouldn't think so?

            • capslock janitor on 21/08/2025 - 17:40
              +2

              @poppingtags: I meant previously there was no interest penalty for withdrawing from the UBank saver account whenever and it would still earn the full amount

              • poppingtags on 21/08/2025 - 17:42

                @capslock janitor: Oh I see, the penalty will kick in after October I believe. I will be moving to Macquarie as soon as my interest kicks in this September.

    • Mugsy on 21/08/2025 - 09:51
      +1

      I think the better question is why settle for ubank's 4.35% when there are other options with higher interest, easier hoops to satisfy and doesn't restrict withdrawals with grow requirements?

    • Brakus on 21/08/2025 - 09:55

      Pot calling the kettle black

      • Hangryuman on 21/08/2025 - 11:21
        +1

        Do you come here often ?

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