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 February 27, 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure.
  • Mozo Experts Choice 2021
    Bonus Saver Account

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.20% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate when at least $20 is deposited each month and five Visa Debit transactions are made each month using linked Everyday or Glide transaction accounts.

    Winner of a Mozo Experts Choice Award 2021 in the Regular Saver category.^ No monthly account fees and no minimum balance requirements.

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  • Serious Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.30% p.a. (for $0 to $1,000,000)
    0.15% p.a.(for $0 and over)
    Yes up to $250,000

    No withdrawals in the month. Bonus rate for first 4 months, reverting to 0.15% rate after*

    $0 monthly account fee. Link to any Australian bank account.

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    Details
  • Online Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.10% p.a. (for $0 to $500,000)
    0.35% p.a.(for $0 and over)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    No account keeping fees. No minimum balance required. Unlimited phone and internet transactions.

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    Details
  • Flexi Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.25% p.a. (for $0 to $5,000,000)
    0.05% p.a.(for $0 to $5,000,000)
    Yes up to $250,000

    Increase balance by at least $300 in the month

    No upfront or ongoing fees. Unlimited free transactions. Great for regular contributions.

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    Details
  • Hero Saver

    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.80% p.a. (for $0 to $250,001)
    0.01% p.a.(for $0 to $5,000,000)
    Yes up to $250,000

    Minimum deposit of $200 and no withdrawals in the month.

    Interest is calculated daily and paid monthly. Automatic payment feature. No minimum opening balance needed.

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    Details

^See information about the Mozo Experts Choice Savings Accounts Awards

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