Another cut? UBank drops savings rates by 0.31%

The USaver with Ultra Transaction Account will lose a little bit of its glimmer today, as UBank joins a growing list of banks that have reduced savings account rates following last week’s RBA cut.

While bonus rates available on the account will remain the same, the online bank has cut standard rates for its USaver Account by 0.31%, bringing it down from 1.35% p.a. to 1.04% p.a.

That leaves the maximum rate customers can receive when pairing the USaver with the Ultra Transaction Account at 2.10% p.a., so long as they meet the bonus rate criteria by depositing at least $200 into either account each month.

UBank deposit changes - 11 October

  • Standard rates for the USaver with Ultra were reduced by 0.31%. It now offers interest rates of 1.04% p.a., or 2.10% if monthly conditions are met.
  • The USaver Reach Account, which is available for 18 to 29 year olds, was reduced by 0.31%. It now offers interest rates of 1.55% p.a.
  • The USaver SMSF was reduced by 0.31%. It now offers interest rates of 1.30% p.a.

UBank is not alone in lowering rates for savers. One week on from last week’s RBA cut, we’re starting to see more and more banks take the axe to savings accounts, leaving many savers feeling hung out to dry. 

How do UBank’s savings rates stack up now?

Given all the talk of cheaper home loans following this month’s RBA decision, it’s easy to forget that when deposit-taking institutions make cuts to home loan rates, their savings accounts are usually cut in kind.

Since UBank passed on the full 0.25% cut this month - making it one of only three lenders to do so on all three occasions this year - it was only a matter of time before it started hacking away at savings rates.

And while today’s cuts are a bit steeper than those it applied to home loans, rates for the USaver with Ultra Transaction Account are still among the highest in our database. 

At the time of writing, the average ongoing bonus rate on a $10,000 balance is 1.73%. And among the big banks it sits at just 1.50% - much lower than the 2.10% on offer from UBank.

If you’re wondering how the USaver with Ultra Transaction Account stacks up against others savings accounts on the market, be sure to visit our savings account comparison page, or check out the selection below.

Savings account comparisons on Mozo - last updated 13 June 2024

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  • Savings Account

    5.35% p.a. (for $0 to $250,000)

    4.75% p.a.(for $0 to $1,000,000)

    Yes up to $250,000

    Bonus variable rate is available for the first four months.

    Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.

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  • High Interest Save Account

    5.10% p.a. (for $0 to $250,000)

    0.10% p.a.(for $0 and over)

    Yes up to $250,000

    Deposit at least $200 to either Spend, Bills or Save account from an external source each month.

    No monthly fees on any of your save accounts. Split your money with up to 10 Save accounts. Set savings targets and track the progress of all your Save accounts. Deposits guaranteed up to $250K per customer.

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  • PremiumSaver

    5.45% p.a. (for $0 to $250,001)

    1.50% p.a.(for $0 and over)

    Yes up to $250,000

    Increase balance by $200 by the end of each month

    Reward yourself with a higher rate for your good savings habits. Rabobanks’s PremiumSaver is simple - receive the maximum rate when you grow your balance by at least $200 each month (T&Cs apply). Plus, your savings help our Aussie farmers produce the food we love to enjoy.

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  • Mozo Expert Choice Badge
    Savings Maximiser

    5.50% p.a. (for $0 to $100,000)

    0.55% p.a.(for $0 and over)

    Yes up to $250,000

    For customers who have an Orange Everyday account, deposit $1000 into a personal ING account, make 5 eligible transactions and grow their nominated Savings Maximiser account each month.

    Great variable rate every month when you grow your balance each month in addition to other eligibility criteria. No ING fees to pay. Save even more with ING Everyday Round Up. Mozo Experts Choice Awards Everyday & Savings Bank of the Year winner for 2024.^

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^See information about the Mozo Experts Choice Savings Account Awards

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