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.

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Comments

    • payless69 on 21/08/2025 - 11:26

      Now you can count the envies negging you!

  • serpserpserp on 21/08/2025 - 10:00

    I just want somewhere I can park my 10 million and earn the RBA rate

    • Grimace on 21/08/2025 - 15:48

      If you actually have 10 mil and you leave it in cash you’re a total goose. I’m assuming you’re joking though lol.

      • serpserpserp on 21/08/2025 - 16:31

        Not if you can live off less than 5% interest p.a.

        • Grimace on 21/08/2025 - 21:05
          -1

          That's still an incredibly dumb thing to do. You could put it in bonds or equities ETFs and make way more money with a similar income.

          • serpserpserp on 21/08/2025 - 21:29
            +1

            @Grimace: You can loose money on those things. The don't always go up.

            • Grimace on 21/08/2025 - 22:07
              +1

              @serpserpserp: Yes, I know, but over a 5-10 year period you'd be insane to hold all that money in cash and the academic literature is very clear on that.

              • serpserpserp on 21/08/2025 - 22:14

                @Grimace: That is if you are out to make money. If you can get a risk free 4-5% p.a. return and not spend all the money in a year. You are ahead. You don't need to make bleeding edge returns.

                I get the investment rhetoric if you don't have 10 million in cash though.

                • Grimace on 21/08/2025 - 22:17
                  -1

                  @serpserpserp: Your understanding of investment risk appears to be pretty unsophisticated, but what else would you expect from someone who's desperately looking for opportunities to mention that they have $10million cash on an online bargain hunting forum?

                  • serpserpserp on 22/08/2025 - 09:15
                    +1

                    @Grimace: Given all I do for a living is deal with financial risk I'd say my understanding of investment risk is pretty sound! Perhaps you're not taking in to consideration of the needs of the counterparty making the decision.

                    Sometimes you just need to make a little return over a medium period of time.

                    Anyway, you are very combative with your replies so I will stop here. Good luck with your ETFs etc.

            • Hangryuman on 22/08/2025 - 12:54
              -1

              @serpserpserp: 'You can loose money on those things. The don't always go up.'

              yes the don't - I don't want loose money …

              • Grimace on 22/08/2025 - 13:23
                -1

                @Hangryuman: Over the long term you'd literally be losing money by keeping so much in cash.

    • Jared17 on 23/08/2025 - 14:21

      Put in gold for long term. Crypto for short and if you like gambling

  • jasenc on 21/08/2025 - 12:09
    +2

    ANZ Plus is also dropping from 4.5% to 4.25% tomorrow, received an email today.

  • Bidet Mate on 21/08/2025 - 13:30

    Take a look at bank term deposits. The longer you go out the lower the returns. Once you reach about the 2 year mark at the moment they are sub 2%.
    Usually term deposit rates increase with duration, due to the whole inaccessibility thing.

    So, expect your savings interest rates to drop drastically in the next year or so…

    Upside is, it should also mean a drop in mortgage rates, and if it combines with the somewhat predicted GFC it could be a really nice chance to "get ahead" with discount stocks and housing, much like the more fortunate/well placed punters did last time around.
    Impossible to guarantee though of course. They could always just print/debt their way out of it like they did in covid.

    • hornbill on 21/08/2025 - 17:40

      I’ve been waiting all year for Trump’s 2nd run to cause GFC and buy into discount shares, meanwhile markets at all time high and keep rising. I am guessing that soon as I give up waiting and put my money into shares GFC will hit.

      • Bidet Mate on 22/08/2025 - 07:12
        +2

        Let me know when you do. I'm restlessly waiting for the point to transfer all my ETFs to the beta share BEAR haha.

  • Grimace on 21/08/2025 - 15:47
    -1

    When these guys put hoops in a month or so ago I was outta there to Macquarie straight away. They went from having one of the fairest, most customer focused products to trying to dog the customer at every opportunity.

    They lost an 8 year customer who did practically all their banking and transactions with them just like that.

    Also, their security is terrible. Have they started doing two factor authentication through the app yet or are they still doing SMS like it’s 2016?

  • greenjay on 21/08/2025 - 20:35
    +2

    Is there a bank that allows several accounts like UBank does? I like the way you can have several "buckets", but it really is time to say goodbye to them.

    • suzta on 22/08/2025 - 08:33
      -1

      I'd like to know too.

      I moved to Macquarie but it seems it doesn't do "buckets", or at least you can't have multiple buckets & get high interest on them all.

      I think I'm going to stick to Ubank, despite the hoop jumping, because I really like the app and the ability to use buckets.

      • Mugsy on 22/08/2025 - 10:22

        None of you tried opening extra savings accounts with your banks?

        • suzta on 22/08/2025 - 11:20

          I'd like linked bank accounts all visible in the one app, and for them to be high interest with little hoop jumping. Such a thing doesn't seem to exist, or won't once Ubank screws everyone.

          • Mugsy on 22/08/2025 - 11:42

            @suzta: OK, so by "buckets" I assume you guys are talking about the ubank app's ability to link external bank accounts' apps so you can see them all in the one place.

            If so, I personally wouldn't want to let one bank have access to another bank like that for obvious security reasons. I can understand the convenience but it's not a secure option.

            • suzta on 24/08/2025 - 08:26

              @Mugsy: No. Buckets in this context means multiple linked internal Ubank accounts. They are all high interest except for the "Spend" one.

              • Mugsy on 24/08/2025 - 09:55
                +1

                @suzta: i.e. you want multiple savings accounts.

                You shouldn't have an issue with getting that at Macquarie then as long as you're happy with their rate of 4.25%. You can definitely do it at Macquarie. My Dad has more than one savings account earning 4.25% in both.

                • greenjay on 11/09/2025 - 20:21

                  @Mugsy: OK, after much looking around I'm going with BoQ. They allow multiple accounts, like UBank does and 4.6% up to 250K is pretty good all things considered. I can live with the 5 transactions & deposit $1,000 hoop because it does not have a grow balance condition. App only access which I know won't be for everyone.

  • payless69 on 22/08/2025 - 11:01
    -3

    Update:
    "grape" trick failed at Colesworth.
    "Carrot" trick substitution meant that Ing is now eating 8610 type of waste.

  • Soothsayor on 22/08/2025 - 16:16

    Southern Cross Credit Union are holding strong at the moment at 4.65% guessing they will move eventually. But consistently strong.

  • Pusdi on 23/08/2025 - 10:10
    +3

    Love posts like this. It saves me doing as much leg work. Thanks OP and especially the knowledgeable commenters

  • Jared17 on 23/08/2025 - 14:22
    +1

    Thank OP. Moving to Macquarie and ME banks after Oct

    • Mugsy on 25/08/2025 - 18:38

      Not sure why you got negged. Your response was perfectly cromulent.

  • Haunt on 07/09/2025 - 20:59
    +1

    Hey so just to confirm, for ME Bank, it's okay to take out money as long as you deposit $2k into SpendME? Like if I have $10k balance and I put $2k for the month, but before the month ends I take out $3k so my ending balance for the month will only be $9k - that is still ok and I would still get the 4.60% rate?

    • JayJay04 on 07/09/2025 - 21:01
      +2

      No requirement to grow balance, just transfer the $2k in on the first of month and straight back out same day, set and forget

      • Haunt on 07/09/2025 - 21:54
        +1

        That's awesome. I guess it's not much of a troublesome 'hoop' - i've been happy with my no hoops Australian Unity Freedom Saver but sadly they are closing down soon

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