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.
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%.
| Term | Rate | Change | New rate |
| 1 | 1.50% p.a. | 0.10% p.a. | 1.40% p.a. |
| 2 (Green) | 1.70% p.a. | 0.10% p.a. | 1.60% p.a. |
| 3 | 2.10% p.a. | 0.10% p.a. | 2.05% p.a. |
| 4 | 2.10% p.a. | 0.10% p.a. | 2.05% p.a. |
| 5 (Green) | 2.10% p.a. | N/A | 2.10% p.a. |
| 6 | 2.15% 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. |
| 9 | 2.15% 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. |
| 12 | 2.15% 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.
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