This was posted 1 year 6 months 16 days ago, and might be an out-dated deal.

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Earn up to 5.00% p.a. on Combined Balance of up to $250,000 across All Save Accounts ($200+ Per Month Deposit Required) @ ubank

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Earn up to 5.00% p.a. on Combined Balance of up to $250,000 across All Save Accounts ($200+ Per Month Deposit Required) @ ubank
Go to Deal
nootboii on 06/06/2023 - 15:27 ubank.com.au (2012 clicks)
Last edited 16/11/2023 - 11:01 by 1 other user

More good news for your savings! After the Reserve Bank of Australia announcement today to raise the cash rate, we’ll be increasing our bonus interest rate to 4.90% p.a. – passing the full increase onto you 🥳

We don’t make you jump through hoops 🏀

From 1 July 2023, you can earn up to 5.00% p.a. on your Save account when you deposit $200 or more per month into any of your Spend or Save accounts – that’s it!

The new bonus rate is 4.90% p.a. and is paid on balances up to $250K per customer on top of the 0.10% p.a. base rate.
Earn up to 5.00% p.a. on Combined Balance of up to $250,000 across All Save Accounts ($200+ Per Month Deposit Required) @ ubank

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Referrer and referee each receive $20 after referee makes 5 settled card purchases within 30 days.

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closed Comments

  • alokin123 on 06/06/2023 - 16:13

    So my maths isnt great and these savings accounts confuse me but is this deal saying for example if you have $300000 in this account you earn 5% on that amount or 5% on the monthly deposit?

    • Culpable on 06/06/2023 - 16:17
      +2

      You earn 5% on the amount in your account, not the amount you deposit (up to a max balance of 250k).

      For the sake of simplicity, if you had 100k in the account for a year, you would get approximately:

      100k * 0.05 = $5000 a year

      or

      $5000/12 = ~$417 per month

      (it's a bit more than that due to how compounding works, but hopefully, that helps).

      • alokin123 on 06/06/2023 - 16:22

        Thanks!

      • Oipjo on 06/06/2023 - 16:25
        +2

        .. And then you get taxed :)

        • Stoibs on 06/06/2023 - 16:35

          Shh, we don't think about that ;)

          • angywoo on 10/06/2023 - 22:35

            @Stoibs: Would the tax rate be your usual tax rate or is it different for bank accounts?

            • Yola on 11/06/2023 - 18:16
              +1

              @angywoo: It will be taxed at your marginal tax rate.

            • danielh on 11/06/2023 - 18:18
              +1

              @angywoo: When you do your taxes, because you provide your TFN, the yearly total amount you earned from interest is passed onto the Tax department and taken into account for your annual tax assessment. As mentioned earlier, the amount of tax you pay is dependent on your income tax bracket.

              • Igaf on 11/06/2023 - 22:15
                +1

                @danielh: @angywoo: If you don't provide a TFN you will eventually get the difference (between your marginal rate - typically 32.5%, and the highest marginal 45% rate) back when you do your taxes. However, that's not a good strategy for large balances and relatively high interest rates - unless you're a hopeless saver - because it means you don't get to use/re-invest the 45% of the interest they've withheld. It effectively reduces your interest rate, significantly.

                https://www.ato.gov.au/Individuals/Investments-and-assets/In…

    • Igaf on 06/06/2023 - 18:59

      Most? of these accounts earn DAILY interest on the total balance at the end of every day but that interest is not added until the last day of the month.
      eg 5% annual = 5 div 365 = 0.0137% per day approx. They are compound interest accounts on a monthly basis, ie your interest also earns interest once the bank pays it each month.

  • Culpable on 06/06/2023 - 16:19

    Ubank had their finger on the trigger for this one after the amount of pushback and complaints they got after they only passed on 15 bps of the last 25 bps rise.

    • tekisei on 06/06/2023 - 16:26
      +7

      As I was increasing my transfer limit over the phone to move cash out of uBank I mentioned the above reasoning in passing, and the CSR was like "ok your complaint has been recorded here is your ticket number".

      So I take full credit thank you very much :P

  • mlburnian on 06/06/2023 - 16:32
    -1

    Not much after tax. Even less considering cpi.

    • Igaf on 06/06/2023 - 19:08
      +2

      Yes your money is losing significant value as a result every month, hence the need to get inflation under control.

    • Ghost47 on 08/06/2023 - 08:47
      +2

      It’s still better than having your money in an account that has a lower rate.

  • Duece1995 on 06/06/2023 - 16:37

    Not that great. Incentive saver is better.

  • Look Up on 06/06/2023 - 16:52
    +2

    Electricity rates increasing 20% next month

    Winter is coming

    • capslock janitor on 06/06/2023 - 17:06

      winter came early,

      • muncan on 06/06/2023 - 17:54

        ChatGPT doesn't have access to current information

    • Gavman on 06/06/2023 - 19:07

      For idiots that dont shop around

  • KRiSX on 06/06/2023 - 16:52
    +2

    seriously debating taking a hit on all my ETF's, Spaceship and Raiz and letting the interest build it back up… but have lost a fair chunk, not sure how long it'd take to ride it back up to square one (edit: looks like about 3-4 years if my maths are accurate not taking into account further rate rises)

    • onetwothreefour on 06/06/2023 - 18:11
      +1

      Buy the dip, your ETFs will come good in a few years.

      • mlburnian on 06/06/2023 - 20:36

        Not if you buy asx broad based etf, asx200 is the bastard child of the investment world

        • danielh on 11/06/2023 - 18:28
          +1

          Haha. I think I have gotten just over $1200 in dividends from A200 (gross) and right now a loss of AU$370 if I sell so I'm a tiny bit ahead after probably 2 years of holding..
          YMAX, despite the ~$3900 in dividends, is waaay offset by the loss in market rate of $2200 for me.
          My HVST is even worse. Flat out loss overall even when you include the dividends.
          My portfolio is only barely ahead right now and I would have made more money if it was put in even a Macquarrie account with the lower rates. :-)

          FYI just doing a laugh at myself but to be honest I'm quite diversified in stocks and cash and I have a long term view right now. Currently the swing is for cash so I'm not going to grow my portfolio for a bit and just cash it up in the uBanks/ING's of the world until a good opportunity crops up.

    • JimmyLmao on 06/06/2023 - 22:30
      +6

      Did you remember to take into account tax on the interest income? Most people would be in the $45k-120k taxable income bracket from employment income, paying 34.5% tax (inc. Medicare Levy) on each $1 of bank interest received. That turns this 5% interest income into 3.275% after tax. Which is why an offset account is usually better if you've got a home loan, as it's a 'tax-free return' equivalent to your home loan interest rate (which would be higher than any savings accounts anyway!).

      However, it's usually not a good idea to panic-sell growth assets such as ETF's. They will likely recover, eventually, unless they are in something that wasn't a good investment to begin with (like the BEAR ETF which hedges against the ASX200). Do a bit of research into what you're currently invested in and see if they're well-diversified, in which case they will likely continue to grow up and up over the long term.

      As a hedge against this, perhaps you can pile up a bit of extra cash now while the rates are high for a decent risk-free return. It all depends on what you've got and when you need it. If you're in no need of a pile of cash in the short term, then investing for long-term growth (and investment dividends) makes a lot of sense :)

      Last word of wisdom is that by selling all now, it sounds like you'd be realising some capital losses. These can be carried forward to offset future capital gains, but you'd need to keep a growth asset such as an ETF invested/growing to eventually sell it and realise a capital gain to absorb/offset the capital loss (as opposed to not having a growth asset ever again to take advantage of the capital loss).

      Sorry, it's all a bit complex! Hopefully i've given you some food for thought :)

    • umoddbro on 07/06/2023 - 01:51

      Just leave it mate, time in the market vs timing the market. ETF's win in the long run. If you're not gonna retire in the next decade or two then don't even sweat it.

  • BluebirdV on 06/06/2023 - 17:03
    +9

    I love each rate rise. Yes, yes, yes!

  • ceej11 on 06/06/2023 - 17:04
    +2

    why does it take 3 weeks for them to do it?

    • capslock janitor on 06/06/2023 - 17:06

      hype and hope?

    • Usemame on 06/06/2023 - 17:11
      +5

      so they can enjoy and milk our savings at a discounted rate for 3 more weeks.

      • sa-ozzie on 06/06/2023 - 17:15
        -4

        Please send a list of all the other banks that have announced a savings rate increase today ?

        • ceej11 on 06/06/2023 - 17:17
          +2

          Announced, so what. This isn't a deal idk why so many sheep upvoted.

          • M00Cow on 07/06/2023 - 12:38

            @ceej11: 5% on 200k is 10k/yr
            New Marvel release on Netflix won't make you a cent.

            So i guess it's in the spirit of the website. But investing in mining stocks will probably earn more. China spends it way out of an economic downturn by building stuff, usually cities. They buy our buildy dirt to do that.

        • lovindeals on 06/06/2023 - 17:26

          There's a few other banks that are higher then Ubanks 5%. right now. Once the other banks increase their rates it'll be MUCh higher then ubank

    • Gavman on 06/06/2023 - 17:31
      +2

      Thats how they make profit.. by lifting the rate they charge straight away and increasing the rate they pay 3 weeks later — they make millions. Thats the simple answer.

    • muncan on 06/06/2023 - 18:01
      +1

      Sir this is not a KFC deal

      • capslock janitor on 06/06/2023 - 18:12

        this is a wendys

      • Spending2Much on 06/06/2023 - 18:15
        +1

        The pain is still relevant….

        I don't know how I managed that….but not the worst I've done 😂😂

    • capslock janitor on 06/06/2023 - 18:11

      wrong thread

  • donamique on 06/06/2023 - 17:37
    +10

    Somehow these ubank posts have become how I get informed of cash rate increases…

  • moneyhungry on 06/06/2023 - 18:01
    -4

    3 weeks to lift the rates but will drop the rates same day. Banks making record profits but can't give people a break.

    • capslock janitor on 06/06/2023 - 18:12

      they dropped where?

      • moneyhungry on 06/06/2023 - 18:18
        -1

        Just wait and see, every bank does it.

      • moneyhungry on 06/06/2023 - 19:11

        Westpac already lifted rates on mortgages, how do you stick up for banks

  • Igaf on 06/06/2023 - 18:02
    +12

    For those wanting basic comparison rates etc:

    https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e…

  • hamwhisperer on 06/06/2023 - 18:51

    No age limitation, like terrible ageist banks. Good stuff

  • ExeGNR on 06/06/2023 - 22:01

    Couldn’t find anywhere in the UBank page, are you locked for a fixed time for this saver account? Is there a minimum time less than 3 months?

    • Hiphopopotamus on 06/06/2023 - 22:02
      +1

      No locks, you're free to leave any time.

  • ForeverInBlueJeans on 07/06/2023 - 06:22

    They’ve stopped sending the reminder push notifications. Even though they advertise (or did) that they would remind you.
    Very happy with ubank/86400 very handy app. Although they haven’t released a decent feature in a while.
    The monthly email used to have a new feature every month, but now they just repeat the same feature as last year.
    I do like their low balance alerts. Pity they never added it to the joint accounts. I asked last year and said coming soon. But never did

    • capslock janitor on 07/06/2023 - 10:46
      +2

      They should add Sweeps like the old

      • ForeverInBlueJeans on 07/06/2023 - 11:30

        You can now pay direct debits from the savings accounts, this is a great, so I only have a small amount in my transaction account to cover card taps.
        I have a recurring transfer from saving -> transaction every week so I don't really need sweeps, but that is just me

  • hohoisme on 07/06/2023 - 09:58

    Any recommended banks with high saving rates for non-Aus tax residents? Tried open an account for my parents but have to be Australian citizen…

  • Drakesy on 07/06/2023 - 11:42
    +1

    Give me 5% rates any day.
    Anything to crash the debt bubble that so many people bought into.

  • Be Happy on 07/06/2023 - 11:53

    Need a piece of advice from you all.
    450k mortgage and around 100k savings. What's the better option to utilize savings these days?
    Leave it in the offset account or put in this savings account?
    Your honest advice will be highly appreciated.

    • Slo20 on 07/06/2023 - 12:06
      +6

      Offset account. Your home loan rate will be higher than the savings rate and you’d pay tax on interest earned within the savings account making the actual net % return even lower.

    • Drakesy on 07/06/2023 - 12:20
      +2

      Offset will always beat a bank account as you don't pay tax on money sitting in your offset.

  • Gumbootboy on 07/06/2023 - 13:45

    I think I had overlooked ubank in the past, because it's digital only, and the missus wanted to avoid banks without a store.

    But looking now, this seems to be a good rate, for a good balance limit.

    Are they generally always pretty high when it comes to rate? eg up there with ING (not exactly the same, but still pretty close) Or do they bring there rate up and then let it slip?
    I can see lots of feedback about missing the 0.1% last time, which is fair, but if they are still one of the highest, it's still nothing to sneeze at.

    Can the $200 be auto added and then removed? And interest removed too, eg the requirement isn't to grow, but just to deposit?

    • Igaf on 07/06/2023 - 14:23

      I banked with Ubank years ago not long after they started. Rates were the best available, lasted about 18 months from memory then dropped way off the pace so I moved elsewhere. They're NAB, who don't have a great reputation. Ubank service was fast and excellent at that time. Online still is but if you need urgent answers (eg lost card, acct issues etc) then there's a long phone wait according to some. Same goes for ING and Commbank, probably ALL FIs, ime.

      Yes the $200 can be transferred out after you've put it in (as can any other funds).

      There is no balance growth or card spend reqts.

      The online and phone apps are easily navigated if you're doing basic stuff.

      • Gumbootboy on 07/06/2023 - 15:44
        +2

        Cheers! Appreciate the feedback. Sounds good for set and forget, as long as the rates don't slip too much. And that shouldn't be too hard to stay on top of, just need to keep an eye on any RBA and subsequent announcements.

        FYI - I joined ING last month, and found them pretty quick to respond to messages. That said, the only reason I was messaging them was because the app initially said I would get interest for June, then it changed to say in progress, so i had to scramble to make 5 transactions, and they ended up confirming that i didn't need to make them. Thankfully they were still pending into June, so have now met my transactions for July interest.

        • tekisei on 07/06/2023 - 16:43

          uBank used to be my primary but now it's only good for overflow for net-savvy people.

          If you are helping your parents/elderly relatives with putting their funds into a high rate savings account, uBank or even Macquarie (4.25% but Macquarie have a grand total of 3 branches, 1 in each eastern state) are useful due to the fact that you can send funds directly out from the account with card or bank transfer, without an intermediary step.

          • Gumbootboy on 09/06/2023 - 18:05

            @tekisei: Thanks! Question for on your points.

            'Only good for overflow for net savy people' - is that only for overflow becuase there are better rates with ING etc? And net savvy becuase there are no branches?

            'Send funds directly out from the account with card or bank transfer without intermediary step' - not too sure what this means, its thay just describinb a normal bank transfer?

            • tekisei on 09/06/2023 - 21:20
              +1

              @Gumbootboy: Yep so ING, BOQ, Virgin Money etc have significantly higher rates but are more finnicky with "bonus rate" eligibility so you have to automate to some degree and check regularly if bonus rate eligibility is met. uBank has no branches so yes that is what I meant by that - it seems to be an increasing trend like for ANZ Plus which is touted as a app-only, branch-less account. Older people might feel much more secure with branches available and less uncertainty about achieving a bonus rate.

              Send funds directly from the account - in uBank, the transaction account is the main savings account where you earn 4.75% - you can pay anyone from this account. In ING, to pay anyone else from your savings maximiser account earning 5.25% (via card or bank transfer), first you need to move money to your Orange Everyday (earning basically zero interest) then pay out from that account.

              Not only is it an extra step in your workflow, it also makes full automation a bit harder/costlier because you are forced to leave funds in that Orange Everyday 0% interest account for a day (if you do not space out the transactions by a day, you may run the risk of an overdrawn account).

              • Gumbootboy on 09/06/2023 - 22:43

                @tekisei: Awesome, thanks for the detailed reply.

                Agree it seems this will be good for overflow.

                Cheers!

              • Igaf on 13/06/2023 - 00:04

                @tekisei: Transfers between ING SM and OE accounts online are instantaneous, so funds are immediately available for payments. No need to wait a day or even an hour. Can't comment about the phone app as I don't use it but I'd expect it is the same.

                • tekisei on 13/06/2023 - 00:17
                  +1

                  @Igaf: I'm not referring to manual payments, but rather automatic scheduled payments. ING customer service explicitly said that scheduled payments run at any particular hour on a day, and no guarantee payments between internal accounts would be settled before scheduled payments going out to external accounts, if both were scheduled on the same day.

  • SydBoy on 12/06/2023 - 18:17

    macquarie bank intro rate is now 5.3% so i parked my fund there … will return to Ubank if they are competitive and has better mobile app then what they got.. !

  • Yojimbo15 on 12/06/2023 - 22:34

    Question, I have a savings account from commbank that is earning 600+ aud a month in interest, is it worth transferring all my savings to ubank? If yes, how am I able to do that? If I can do that in one transaction that would be great.

    • Igaf on 12/06/2023 - 23:56
      +3

      According to this chart
      https://docs.google.com/spreadsheets/d/145iM6uuFS9m-Rul65--e…
      Comm Goalsaver is 4.85% while Ubank is 5.00%. On rough figs, assuming a $125K balance, you'll get about $20 a month more, less tax.

      Assuming you can deposit $1K a month (nearly everyone can), you're better off putting $94K into ING SM (and a small amount in ING OE for card purchases) and the other ~$31K into Ubank. Transfer $999.99 of that $1K monthly deposit into Ubank every month to keep your ING account under $100K for around 12 months.

      Commbank should be able to organise the transfers but it may take 3 or4 days to process. If they give you grief just mention the banking ombudsman https://www.afca.org.au/

    • Igaf on 13/06/2023 - 10:50

      Transfer $999.99 of that $1K monthly deposit into Ubank every month to keep your ING account under $100K for around 12 months.

      Should have mentioned that to maximise your interest the deposit should ideally be early in the month and the transfer out should be late in the month since interest is calculated daily. Splitting hairs there though.

  • MeesusEff on 13/06/2023 - 03:38

    Where ar people withdrawing cash from if they happened to need it with Ubank? My kebab shop is cash only 😂

    • Yola on 13/06/2023 - 07:13
      +1

      Supermarkets.

  • illuminate-cn78 on 17/06/2023 - 14:52

    Thought i saw a different promo/referral code of $40 for new account /customer. Does anyone have the code?

  • cheekymonkey97 on 12/07/2023 - 21:35

    Does this account come with a card to spend from?

    • Yola on 13/07/2023 - 08:36

      Yes comes with a debit card.

      • cheekymonkey97 on 13/07/2023 - 09:32

        Thanks but just to confirm you get a card for the spend account and a card for the save account, is that what you’re saying?

        • Yola on 13/07/2023 - 09:50

          No. You just get one card linked to the Spend account. When you use the card you need to make sure you have money in the Spend account unlike with the old UBank the sweep function would move the money for you from the interest earning to the transaction account.

          • cheekymonkey97 on 13/07/2023 - 09:52

            @Yola: That’s shit, guess I need to keep looking. Don’t understand why it’s so hard for a bank to give a card for a savings account with decent interest rates….

            • Nom on 13/07/2023 - 12:48
              +1

              @cheekymonkey97: You should be doing your spending on a credit card wherever possible, so at least you accumulate points/miles, and your own money is not tied up when the card is inevitably compromised, and you can continue to earn interest on your money until you clear the card bill each month.
              The UBank debit card is absolutely fine for the odd occasion when a credit card isn't the best option - you can just manually shift the correct money in to the correct account before you pay.

              That’s shit, guess I need to keep looking.

              What you're looking for, doesn't exist, so you can stop 😁

              • cheekymonkey97 on 13/07/2023 - 13:27

                @Nom: I'm well aware of that, but that's not the solution for someone who is just getting their finances in shape. I already took all that into account for this person and I decided that credit is not right for them at this point in time.

                What you're looking for, doesn't exist, so you can stop 😁

                It does with Macquarie at the cost of ~1% interest rate. Look at this thread I made earlier today https://www.ozbargain.com.au/node/787851

                • Nom on 13/07/2023 - 15:35

                  @cheekymonkey97: Zero cost of interest rate with UBank, but you do need to manually move the money from Account 1 to Account 2 when you want to spend with the debit card. This friction is probably a good thing for the person who is getting their finance into shape…

            • EBC on 30/11/2023 - 22:32

              @cheekymonkey97: Not sure exactly what the rates are (pretty high by most comparisons) but Macquarie give the same rate on their savings and transaction accounts. But as below, I wouldn't recommend having all your money in an account accessible by your card.

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