UBank drops savings rates in response to March RBA cut

By Niko Iliakis ·
Fact Checked
Advertiser disclosure

UBank customers who logged onto their banking app today might be dismayed to learn the online bank will be cutting rates across its range of deposits.

Effective 9 March, base rates for the Personal USaver, USaver SMSF and USaver Reach will be reduced by 0.25%. Bonus rates will remain unchanged.

That means the maximum rate customers will receive when pairing the USaver with the Ultra Transaction Account will drop to 1.85% p.a., assuming account holders are able to meet the monthly bonus rate criteria.

UBank savings account changes - 9 March

  • Rates for the Personal USaver have been cut by 0.25%. It will now offer interest rates of 0.79% p.a.
  • Rates for the USaver SMSF have been cut by 0.25%. It will now offer interest rates of 1.05% p.a.
  • Rates for the USaver Reach Account have been cut by 0.25%. It will now offer interest rates of 1.30% p.a.

With UBank announcing it will be passing on the full 0.25% cut to its variable rate home loan customers following last week’s RBA decision, many have been bracing for savings accounts to be cut in kind.

Thankfully, rates for the USaver with Ultra Transaction Account are still much higher than the average ongoing savings rate across accounts tracked by Mozo, which currently sits as 0.98%. Among the big banks it’s even lower — 0.57%.

What about term deposits?

Unfortunately, UBank’s term deposits haven’t been spared either. The online bank will be cutting rates for personal and SMSF customers by 0.10%, save for 6 month investment options, which will see a reduction of 0.15%. Once in place, UBank’s term deposit rate sheet will look like this:

TermCutNew rate
1 Month-0.10%0.95%
2 month-0.10%1.10%
3 month-0.10%1.60%
4 month-0.10%1.60%
5 month-0.10%1.55%
6 month-0.15%1.55%
7 month-0.10%1.55%
8 month-0.10%1.55%
9 month-0.10%1.55%
10 month-0.10%1.50%
11 month-0.10%1.50%
12 Months (Interest paid at maturity)-0.10%1.50%
12 Months (Interest paid monthly)-0.10%1.40%

To see how those rates compare to other offers on the market, be sure to visit our term deposit comparison page. And if you want to see how the USaver now stacks up against other high interest savings accounts, have a browse of our savings account comparison page.

Savings account comparisons on Mozo - last updated 26 September 2021

Search promoted savings accounts below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Bonus Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.10% 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 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.

    Go to site
    Details
  • Boost Saver with Go Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.50% p.a. (for $0 to $250,000)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Intro bonus rate of 1.50% for first 3 months, reverting to 1.20% after. Deposit $2,000 each month and make 5 eligible payments from your Go Account. If you are between 18 and 25 deposit $1,000.

    Enjoy a savings account bundled with a spending account. No monthly fees. New customers can earn up to 5000 bonus Virgin Money points on purchases (conditions apply). Benefit together with a joint account

    Go to site
    Details
  • High Interest Savings Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.35% p.a. (for $0 to $250,001)
    0.25% p.a.(for $0 to $250,001)
    Yes up to $250,000

    Bonus rate for the first 4 months from account opening

    Kick start your savings with the 4 month introductory variable rate. No fees, no minimum balance, no minimum monthly deposit and no minimum term.

    Go to site
    Details
  • Fast Track Saver Account
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    1.05% p.a. (for $1 to $250,000)
    0.05% p.a.(for $1 and over)
    Yes up to $250,000

    Ongoing bonus rate applied if in the previous month $1,000 or more is credited to the linked Day2Day Plus account and 5 eligible transactions are made by the linked account.

    Earn 1.05% p.a. Bonus Interest in the following month on your Fast Track Saver Account balance. Earn Bonus Interest on your savings, with no minimum balance required.

    Go to site
    Details
  • Grow Saver
    Maximum rate
    standard interest rate
    Govt Deposit Guarantee
    0.65% p.a. (for $0 and over)
    0.10% p.a.(for $0 and over)
    Yes up to $250,000

    Make at least 1 deposit and no more than 1 withdrawal, including internal transfers or external payments.

    Earn a maximum interest rate of 0.65% per year. Pay no monthly fees. Set up in-app savings goals. Benefit with joint account options.

    Go to site
    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.

    Go to site
    Details

^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.