UBank cuts savings rates, still offers some of the best value around

The UBank USaver with Ultra Transaction Account, a favourite among serious savers, will see reductions today as UBank takes the axe to its range of savings accounts and term deposits.

The decision sees UBank joining a long list of lenders, which includes ING, that have lowered rates on deposits following this month's RBA cut. Thankfully, the rates on offer still represent excellent value.

While rates for the UBank Ultra Transaction Account remain unchanged, the NAB subsidiary made cuts of 0.19% to its USaver Account, bringing it down from 1.54% p.a. to 1.35% p.a.

That takes the bonus interest rate savers could earn when pairing the USaver with a UBank Ultra Transaction Account to 2.41% p.a., assuming they satisfy the bonus rate criteria by depositing at least $200 a month into either account.

Cuts were also made to the USaver Reach account and the USaver SMSF. 18 to 29 year olds who sign up for a USaver Reach account will now be looking at rates of 1.86% p.a., down from 2.05% p.a.

Ever since UBank announced it will be cutting rates for variable home loans by 0.25%, putting it among only a handful of lenders that passed on the full RBA cut in consecutive months, many savers have been bracing for deposits to be cut in kind.

A cut of only 0.19% should put some of that anxiety to rest. The new bonus rate of 2.41% p.a. still sees the USaver with Ultra Transaction Account among the top 10 bonus interest rates in our database on accounts without age restrictions.

Savings account comparisons on Mozo - last updated 19 June 2024

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • 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 2024 Mozo Experts Choice Award winner.

    Compare
    Details
  • 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.

    Compare
    Details
  • 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.^

    Compare
    Details
  • 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.

    Compare
    Details
  • Bonus Saver Account

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

    0.05% 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 Glide transaction account.

    Start saving and earn interest with just a $20 deposit and make 5 eligible transactions each month. No fees or penalties for withdrawing money.

    Compare
    Details

What about term deposits?

UBank has also made cuts to term deposit rates, including its Green Term Deposit, though not as large as those levelled against savings rates. All terms, save for the five-month Green option, will be reduced by 0.10%.

TermRateChangeNew rate
11.50% p.a.0.10% p.a.1.40% p.a.
2 (Green)1.70% p.a.0.10% p.a.1.60% p.a.
32.10% p.a.0.10% p.a.2.05% p.a.
42.10% p.a.0.10% p.a.2.05% p.a.
5 (Green)2.10% p.a.

N/A2.10% p.a.
62.15% p.a.0.10% p.a.2.05% p.a.
7 (Green)2.15% p.a.0.10% p.a.2.05% p.a.
8 (Green)2.15% p.a.0.10% p.a.2.05% p.a.
92.15% p.a.0.10% p.a.2.05% p.a.
10 (Green)2.15% p.a.0.10% p.a.2.05% p.a.
11 (Green)2.15% p.a.0.10% p.a.2.05% p.a.
122.15% p.a.0.10% p.a.2.05% p.a.

To see how these rates stack up against those on offer from other providers, head over to our term deposit comparison page. And if you’d like to see where the USaver with Ultra Transaction Account sits when compared to other savings accounts, check out our high interest savings accounts page.

^See information about the Mozo Experts Choice Savings Account Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.