Could The Arab Bank Personal Online Savings Account Now Be a Much Better Option to uBank Save ?

Dr Phil on 01/10/2025 - 14:22
Last edited 01/10/2025 - 16:35

We all know by now that uBank has changed thier criteria to quallify for bonus interest (Currently 4.35%) which is not that great anymore.
uBank now requires that you must grow your balance each month by at least $1 to qualify for bonus interest.
This is a huge change in thier conditions as we all know……
You can no longer just deposit the (previous) minimum $500 and then withdraw whatever you need, to qualify for bonus interest
This change places uBank in the "me too" category of bonus interest savings accounts
Hence in my opinion uBank have lost thier main competitive edge so its time to seek out better options.

Take for example Rabo Bank's Premium Saver which currently pays 4.65% and which simply requires a minimum $200 increase in your balance each month, though capped at $250K.

Yes there are other accounts that pay more interest, though with multiple conditions.

But the overall point is that you can do much better than uBank's 4.35% bonus interest, now with a monthly balance increase requirement

So if you are looking for new options for accounts that have no minimum balance or deposit requirements and no other conditions, here are your best options:

  1. Macquarie Bank Savings Account is one everyone knows about.
    Its paying 4.25% interest on what is basically a transaction account, but without a debit card.
    It has excellent flexibility with a great interest rate of 4.25% compared with uBanks 4.35% however which now requires an increased monthly balance.

But how many of you know about ……

  1. Arab Bank Online Savings Account
    I only recent discovered this account on a high interest savings account comparison site.
    Here is the deal….
    Arab Bank's current interest rate is a whopping 4.55%* with NO CONDITIONS, though capped at $500,000.
    Boom! That alone blows uBank Saver out of the water.
    There are no account transfer charges to or from external accounts.
    So as a savings account it is an EXCELLENT option    .
    *4.55% is a promotional rate though hasn't changed since July 2025.

You can also opt to run this account as a fully fledged transaction account including a debit card, however various transaction fees apply as follows:
Locally
ATM withdrawal/balance inquiry FREE
EFTPOS fee $1
Direct Debit Fee 50c
BPay Fee 50c

Overseas (Similar or less than the major banks' international fees)
International transaction fee $5
Currency conversion fee 2.5%
International balance inquiry $2

So I would not advise using this account overseas, nor as your principal transaction account, as you can easily rack up some fees.
Better to stick with Macquarie Bank for those purposes.

If anyone knows of other savings accounts paying a high rate of interest, however with NO MINIMUM BALANCE, NO MINIMUM DEPOSIT AND NO OTHER QUALIFYING CONDITIONS, feel free to mention them here.

Financial Bank Account Savings Account

Related Stores

Arab Bank Australia
Arab Bank Australia

Comments

    • KangaDrew on 01/10/2025 - 14:57
      +6

      I may be mistaken, but the issue is that even if you add $1 each month, you can't take any money out without losing interest for the month. At least that's my understanding, I could very well be wrong.

      • tenpercent on 01/10/2025 - 15:02
        +1

        You can take money out. You just need to make sure the balance at the end of the month is at least $1 higher than at the start of the month less interest received.

      • Dr Phil on 02/10/2025 - 07:43
        +2

        When looking at how it was before where you could make the minimum $500 deposit, then withdraw whatever you needed, even if it exceeded the $500 deposit, thats correct.

    • Dr Phil on 01/10/2025 - 16:41
      +12

      Unfortunately Hybroid you have missed the point entirely!

      Previously, the only condition was to make the minimum $500 deposit…
      However could withdraw whatever you like.
      So you still had maximum flexibility.

      Now you are bound with a new condition being that your balance at the end of the month must be higher than the previous month by at least $1 (excluding interest).
      So if you need to withdraw/pay a fair amount of cash then you miss out on your bonus interest.
      So the wonderful flexability of this account that was valued by most here is now gone.

      But yes to 100% mortgage offset accounts.
      They certainly pay thier way

      • randomusername2017 on 01/10/2025 - 17:37
        -1

        Do you think Nepal will achieve negative carbon emissions by 2050?

      • tenpercent on 01/10/2025 - 17:39
        -2

        So if you need to withdraw/pay a fair amount of cash then you miss out on your bonus interest.

        You don't miss out if top the account back up by whatever you pulled out plus $1 by the end of the month.

        • Dr Phil on 02/10/2025 - 07:36

          Exactly!

          This is a NEW CONDITION from uBank!

          uBank have removed one of the "main attractions"

          So its now just another "Me too" bonus interest account with monthly account balance increase requirement.
          Nearly all banks have them.

          And you can get better interest elsewhere such as with ABAL's 4.55% and no conditions or requirements.

          Why keep beating a "dead cat"

      • Baysew on 01/10/2025 - 17:51

        @MS Paint

        Take a shot.

    • mike6969 on 02/10/2025 - 08:27
      +2

      The issue is when you take out money that you are not planning to replace by the end of the month.

      If you take it out immediately after the last interest was paid, then it's ok, you don't lose any interest on it.

      But let's say you take it out just before the interest is paid at the end of the month, the you lose all interest for that month.

      This is the issue people are talking about since that could be a lot of money lost

    • LFO on 02/10/2025 - 20:37

      Why is this such a hardship?

      That is obviously correct but it is not the "no conditions" mantra.

      Otherwise ING "with conditions" pays 4.8%.

      Personally I feel it is a bit academic and smart investors do not shy away from "conditions" when chasing profits.

  • Nonce on 01/10/2025 - 14:40
    +2

    wait i thought arabs believed interest is haram

    • Hybroid on 01/10/2025 - 14:42
      +2

      Arab ≠ Islamic. Though some of the latter still do to generate profit.

      • jv on 01/10/2025 - 14:49
        -1

        Arab ≠ Islamic.

        93% Arab = Islamic.

        • Benoffie on 01/10/2025 - 14:57
          +3

          Was in Egypt for a bit. Never forget what an old fella once told me:

          Egyptian first, then Mediterranean, then Muslim. Maybe. Depending on who you ask.

          Confirmed again when invited out to a nightclub with alcohol everywhere. Haram? No. Only wine.

          Ah, yes. Loopholes abound

        • dtc on 01/10/2025 - 15:08
          +5

          maybe the bank is run by the other 7%

          • jv on 01/10/2025 - 15:08

            @dtc: maybe

          • Ryven on 01/10/2025 - 17:02

            @dtc: Can confirm, I am part of the other 7%. "We" run the bank. If you need any help setting an account up, just get your cash to me and I'll sort it out.

            Also, qard hasan/halal/interest free loans are just loans that don't charge "interest". Instead they have fee structures that are directly comparable to interest charged on other loans.

            • tenpercent on 01/10/2025 - 17:43

              @Ryven:

              loans that don't charge "interest". Instead they have fee structures that are directly comparable to interest charged on other loans.

              That'll trick Allah (pbuh)! Word games and semantics will definitely get around His commandments.

      • bargaino on 02/10/2025 - 01:05
        -1

        Bank was founded by a Muslim Arab from Ottoman Palestine, who emigrated to the US and made his fortune.

  • jv on 01/10/2025 - 14:42

    Arab Bank's current interest rate is a whopping 4.55%

    I thought that interest was forbidden for arab banks ?

    • tenpercent on 01/10/2025 - 14:56

      According to an LLM:

      It is permissible to earn interest from non-Muslims (infidels) according to many Muslim scholars, as it is considered part of their customary financial transactions and not forbidden riba in the same way as interest between Muslims.

  • mrkorrupt on 01/10/2025 - 14:58

    Usuary is forbidden, however some dont care and some want to imitate the west

    • tenpercent on 01/10/2025 - 15:00

      They're paying you, not charging you interest.

    • AussieDaddy on 01/10/2025 - 15:01
      +3

      Name doesn't check out.

  • c64 on 01/10/2025 - 14:58
    +2

    i've ditched ubank. there are lots of banks now with better interest rates. i don't find monthly transaction requirements that onerous. 5x $0.05 transactions on my first purchase at the shops each month is not too demanding

    • Dr Phil on 01/10/2025 - 17:05
      -1

      Correct when you use the same account for depositing your pay and paying your bills and when your savings are under $50K-$100K.

  • pennypincha on 01/10/2025 - 15:20
    +1

    Found a heap of options on this site. Is this where you found Arab Bank as well? They seem to list way more accounts than other sites.
    https://www.money.com.au/banking/high-interest-savings-accou…

    A couple of starting points:
    Australian Unity Freedom Saver 4.35% up to $50k
    AMP Go Save 4.25% up to $250k

    • c64 on 01/10/2025 - 16:19

      the gold standard

    • Dr Phil on 01/10/2025 - 17:01
      -1

      yes, I believe thats where I spotted Arab Bank..

      Thanks for your observations.

      Admittedly Australian Unity Freedom Saver is very good for those with low-medium savings….
      The 4.35% rate is good to $50K. Then 4.25% to $250K.
      But unlike Macquarie and ABAL, you cant do anything with this "stand alone" savings account..
      To do any transactions you need to open a transaction account as well, which means you cant have all your money in one account.
      So the effective interest rate across both accounts is much less than 4.35%

      However Arab Bank's Online saver is still far better in every way….
      Much higher interest rate and much higher balance cap @ $500K
      The option to use it as a full transcation account (some fees are applicable but generally in line with the major banks)

  • ihbh on 01/10/2025 - 15:24
    +1

    Could The Arab Bank … Now Be a Much Better Option

    If you want your interest paid in oil.

    • Dr Phil on 01/10/2025 - 17:03
      -3

      Oil is much better than cash my friend.
      Oil is liquid Gold. Cash is a ponzy scheme.

  • Dollar General on 01/10/2025 - 17:21
    +3

    Does Arab bank offer customers $100 if they are not greeted with the word "hello"?

    • tenpercent on 01/10/2025 - 17:44

      Does any bank?

      • ValueInvesting on 01/10/2025 - 22:03

        Yes one bank does https://m.youtube.com/watch?v=IN6cJ_wGmsk

      • Thrift on 02/10/2025 - 01:58

        I miss the days when ANZ would give you $5 if you waited more than 5 minutes to be served by a teller. The program ran from 1994 to 1997. I'd always pop in during busy periods to snag an easy fiver.

        14 Jun 1994: ANZ's $5 for Five-Minute Wait (The Australian Financial Review)

        The bank will guarantee customers will not have to wait more than five minutes for teller service at any branch in Australia - and if they do, the bank will credit their account with a $5 inconvenience rebate.
        "We have had that service standard in place internally for about 18 months and we have had to have staff in there monitoring it - now the customers will do it for us when they claim their $5."

        21 Jun 1994: Giving Credit Where it's Queue (The Australian Financial Review)

        ANZ Banking Group kept customers waiting in line for teller service for four days, one hour, 44 minutes and 59 seconds [in the first week of its guarantee on queuing time in bank branches]…1,173 customers had claimed the $5 rebate…will cost ANZ $5,865

        1 Feb 1997: End of the Line for $5 Bank Favour (The Weekend Australian)

  • cashless on 01/10/2025 - 17:25
    +1

    Does "Arab bank" have the $250k FCS protection that other domestic banks have?

  • spav99 on 02/10/2025 - 10:32

    Thoughts on bankwest?it has 4.8% intro rate and 4% ongoing

  • Techn1x on 02/10/2025 - 17:12
    -1

    I got declined for my savings application today, lol. I have never had that happen before. They want me to go into a branch to fix it up, but they only have branches in NSW/VIC.

    They mentioned a few things; my email address (it's an alias address), and my employment (I am between jobs / currently unemployed).

    Be wary of these guys.

  • mike6969 on 03/10/2025 - 07:28
    +1

    Arab bank don't have payid/osko btw in case that matters to some people (turned me off)

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