Another cut? UBank drops savings rates by 0.31%

By Niko Iliakis · · 3 min read
Fact Checked
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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 24 April 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    High Interest Savings Account

    5.75% p.a. (for $0 to $250,001)

    4.40% p.a.(for $0 to $250,001)

    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.

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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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  • Reward Saver Account

    5.25% p.a. (for $0 to $1,000,000)

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

    Yes up to $250,000

    Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.

    Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.

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  • Mozo Expert Choice Badge
    AMP Saver Account

    5.40% p.a. (for $0 to $250,000)

    1.20% p.a.(for $0 to $5,000,000)

    Yes up to $250,000

    Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.

    No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.

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  • Savings+Bonus

    5.00% p.a. (for $0 to $250,000)

    2.00% p.a.(for $0 to $250,000)

    Yes up to $250,000

    Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.

    Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.

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^See information about the Mozo Experts Choice Savings Account Awards

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