Changes to ubank Save Account

RichardL on 27/05/2024 - 23:30
Last edited 18/06/2024 - 15:21

Just received an email from ubank for changes to the ubank Save Account.

Hi,

We’re making some changes to our General Terms, which will apply from 1 July 2024.

Here are the main changes:

  1. Bonus Eligibility Criteria: we’re increasing the amount you need to deposit to qualify for bonus interest. Starting from 1 July, you’ll need to deposit $500 or more into either your Spend, Bills or Save account each month from an external bank account (like your salary).
  2. How we calculate interest on your Savings: We’re introducing interest rate tiers to our Save account, which will change how interest is calculated. We’ll be in touch soon with the rates that apply to each tier. For more info visit ubank.com.au/banking/savings-account/whats-new. We’ll be in touch very soon with more on this.
  3. Removing Outbound Payments from Save: You’ll no longer be able to make most external payments directly from your Save account. You'll still be able to receive external payments into Save. It's all about keeping your savings separate. Make sure to update any recurring payments, like Netflix or your phone bill, to come out of your Bills or Spend account(s) or Visa Debit cards. We’ll send reminders about this closer to the time.
  4. Passkeys: We’re introducing an easier and more secure alternative to log in to the app. This won’t be available for everyone yet; we’ll be in touch when it’s available for you.

All of the changes we’re making to the General terms are set out in detail at the start of the new terms. Please make sure you read them, so you understand what’s changing.

For more information about the upcoming changes to the Save click here.

Speak soon,
Team ubank

Update: Bonus interest rate tiers from July 1st (Deal Post):

Tiers Amount Rate
Tier 1 $0 to $100K 5.5%
Tier 2 $100K to $250K 5.0%
Tier 3 Over $250K 0%

Overall an increase (assuming 250k)

  • Current Rate of 5.1% = $12750pa
  • New Tier Rate of up to 5.5% = $13000pa
Financial Bank Account Savings Account

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Comments

  • Pcoder on 27/05/2024 - 23:37
    +98

    Looks like Enshittification

    Can guarantee these new interest tiers are worse.

    • askbargain on 27/05/2024 - 23:42
      +5

      Sad there aren’t any other banks we can switch to

      /s

      • dazweeja on 29/05/2024 - 12:46
        +6

        Which other banks have a decent savings rate and the ability to make external payments directly from the savings account (or a sweep function)?

        Edit: It looks like keeping a grand in a Macquarie Savings account for paying bills and any other savings in an AMP account might be a decent combo.

        • Shadowsfury on 30/05/2024 - 09:27

          That's the combo I'm thinking now too

        • Make it so on 04/06/2024 - 21:19

          But they got rid of sweep earlier…

        • OZBMate8911 on 14/06/2024 - 09:35

          Macquarie has an interest rate of 4.75% on their transaction account. Which is the same as their savings account!

          EDIT - no fees etc either.

          See here

          Only caveat - the issued card is Mastercard only, no EFTPOS.

      • autolux on 29/05/2024 - 13:21
        +2

        what do you mean? ubank interest rate isn't even that great. mebank & amp offering 5.4%+ i believe with similarly minimal monthly requirements

        • pinkybrain on 04/06/2024 - 01:02

          don't you need to make 4 payments to quality for the bonus with mebank

        • BigBirdy on 04/06/2024 - 08:47

          ME Bank restrictions are bad for big savers, $100k limit, and must grow balance. AMP is fine

      • SydBoy on 01/06/2024 - 03:08
        +2

        AMP
        I switched to AMP last time they stopped passing full rate.

        I get 5.4% much better than Ubank

    • RichardL on 27/05/2024 - 23:43
      +13

      Can guarantee these new interest tiers are worse.

      I suspect that the tier 1 will be the current rate (5.1%) and it reduces with higher tier/amount.

      • crentist on 27/05/2024 - 23:59
        +10

        Ugh probably. I moved to Ubank after getting annoyed with ING, despite their higher rate.
        The balancing act of transferring money in and out, spending 5x transactions, and trying not to go over $100k gets annoying

      • finbar on 28/05/2024 - 09:01

        That's my guess too

      • jackofspade on 28/05/2024 - 09:25

        I think they will increase the rate for tier 1

        • finbar on 28/05/2024 - 12:43
          +5

          Why didn't they already announce now it if its going to be an increase ? Would soften the current backlash.

      • markathome on 03/06/2024 - 09:38

        We’ll give you notice of changes to your interest rate (including any savings bonus) no later than the day the change takes effect.

        swear word. So they can reveal the new tier rates on July 1st and be like "soz, lol".

    • kaleidoscope on 28/05/2024 - 16:31
      +19

      Learnt something today!

      Enshittification

      Enshittification is the pattern of decreasing quality observed in online services and products such as Amazon, Facebook, Google Search, Twitter, Bandcamp, Reddit, Uber, and Unity. The term was used by writer Cory Doctorow in November 2022, and the American Dialect Society selected it as its 2023 Word of the Year. Doctorow has also used the term platform decay to describe the same concept.

      • idonotknowwhy on 29/05/2024 - 10:30

        It's the (profanity) worst. Even Fastmail roll out subtle changes which make life just that little bit more difficult, for no reason.
        Like at least with Ubank, there's a reason (increase profits), but the changes for the sake of change really piss me off.

        • UnemployedDeveloper on 01/06/2024 - 11:11

          Which changes from Fastmail are you referring to ? I'm a daily user

          • idonotknowwhy on 07/06/2024 - 15:56

            @UnemployedDeveloper: Daily user myself for a good 8 years now. I create a separate email address per service or group of contacts.
            Years ago, I could go settings -> aliases -> <type in the new email address> -> save
            Then immediately I'd be able to sign up for whatever 20cent shipped landfill deal was on ozbargain, etc.

            But a few years back, they made it so I have to type my password each time I do this, and specify that it's an alias instead of a paid extra email account.'

            Change like this shit me up the wall, extra clicks every time I do this.

            More recently, it's even worse. Settings -> My email addresses -> add address -> huge button for 'create an alias' -> wait for pageload to get another screen to customize settings for it -> save button.

            At least now they don't make me re-enter the password, but ^ is about as many steps as installing (profanity) windows xp.

      • MagpieSilver on 29/05/2024 - 16:47
        +1

        We are truly in the age of enshittification. So much so that the guy who coined the phrase is labelling this the Enshittocene. https://www.ft.com/content/6fb1602d-a08b-4a8c-bac0-047b7d64a…

      • capslock janitor on 18/06/2024 - 17:27

        why isnt it just shittification ?

    • SBOB on 28/05/2024 - 18:06

      +1 for the phrase usage
      Cory Doctorow is definitely a talented wordsmith

    • TitanFather on 29/05/2024 - 11:46
      +2

      Not official communication, but spoke to UBank customer service and they confirmed that interest rates will be moving up (for at least Tier 1)

    • RefusdClassification on 30/05/2024 - 20:44
      +14

      People claim capitalism is making the world a better place and everyone rich, but all I see are things getting worse. What has improved over the last 5 years? Housing 60% more expensive, online services (streaming video & social media worse), food much more expensive, medical gap fees much higher. Services that were once free (like AI image manipulation and creation) no longer have a free tier. Software you could once purchase outright now has a monthly or yearly subscription. With digital purchase you no longer own anything; you just have a temporary entitlement that can be taken away.

      The only people benefiting from late stage capitalism ensh1tt1f1c@tion are the top end of town.

  • crentist on 27/05/2024 - 23:47
    +27

    Ah damn it. Why are they messing with a good product.
    Ubank has been great for it's simplicity. Small deposit requirement, interest on high balances, no other strange rules or hoops.
    Tinkering with that might be the start of an annoying path.

    That said, 1 seems to the be the same, and 4 is neutral/good.
    But I doubt the interest increase will be for the better, and why mess with outbound payments from the savings account. It's a good feature.

    • theknight27 on 28/05/2024 - 13:34
      +5

      Point 1 went from $200 deposit to $500 deposit (not a big deal for anyone who was just transferring money in and out, but still).

      • JimmyF on 28/05/2024 - 14:20
        +1

        Yep, that's me!! Just changed my transfers out and in to be 'larger'

        • DoctorCalculon on 28/05/2024 - 19:38
          +2

          I usually have to do $2000 in/out for such banks as HSBC, Westpac, CBA, etc.

          • KangaDrew on 28/05/2024 - 22:59
            +5

            @DoctorCalculon: I do the same, but I'll use the same money and just cycle it through my accounts via scheduled payments to satisfy their deposit requirements. Salary goes into my primary account, $2000 is scheduled the next day to go into ING, then from there to Westpac, then to ubank. Just gotta give it a few days buffer either side but at least it's fully automated.

            • DoctorCalculon on 29/05/2024 - 00:11
              +3

              @KangaDrew:

              I do the same, but I'll use the same money

              Same here. I don't even bother transferring in $200 (new amount: $500) to UBank first.
              Completely redundant since the $2000 that leaves comes back to UBank from an external account in a few days.

              The only bank I haven't been able to automate fully is ING. Those pesky 5x card transactions. I am sure it can be done.

              • based on 29/05/2024 - 11:08

                @DoctorCalculon: Regular payments is the best I've found so far, insurer didn't charge any more for fortnightly payments so I put that on the ING cc, covers 2-3 of the 5. Just need to find 2-3 other regular smaller payments to move over
                Then that cc is set to autopay from the ING savings maximiser

              • nightangel on 31/05/2024 - 19:05
                +2

                @DoctorCalculon: "The only bank I haven't been able to automate fully is ING. Those pesky 5x card transactions. I am sure it can be done."

                since i dont shop and use my card much, the way i did it was to set an automatic payment from my personal paypal account using my ING debit card to my business paypal for 1 cent 5 times a month

                I do lose 1 cent due to paypal fees, but the increase rate of ING and automated method makes it worth it

                but the payment could be to any business paypal account , could check with friends and family if they have one and could set you up

                https://www.paypal.com/us/cshelp/article/what-is-an-automati…

                others ING members just split their grocery shopping via the self check at shops to do the 5 transactions using 5 single items for example

    • Ghost47 on 28/05/2024 - 15:09
      +4

      Why are they messing with a good product.

      Would the logical explanation not be that they’re trying to increase their net interest margin? This is probably one way to eke out as much margin as they can. Instead of paying 5.1% on 250k they can now pay 4.1% or whatever the new rate will be.

    • Aleigh123 on 29/05/2024 - 05:50
      +3

      I mean, I personally thought it was a bit weird that you could make transactions from your savings account. And the only real inconvenience from not being able to do that is now you need to manage the funds in your spending account a bit better.

      But I reckon they've decided they've got enough customer adoption and it's time to increase their profits :'(

      • blazerunner on 31/05/2024 - 14:09

        Buying out 86400 ain't gonna pay for itself.

        UBank has consistently been near the top of HISA interest rates, great if you're lazy and don't want to keep moving $ around to stay on honeymoon interest rates that then tank after 3-6 months. Long term customer probably saying bye-bye…

  • Techie4066 on 27/05/2024 - 23:52
    +28

    I have a feeling the accounts leaderboard will come in handy for people visiting this thread

    Looks like AMP Saver is the next best option? Higher interest rate on $250k, no requirements for withdrawals, growing balance or transactions.

    • umoddbro on 28/05/2024 - 03:32
      +1

      Does AMP let you withdraw the 1k deposit immediately and still qualify for bonus interest?

      • finbar on 28/05/2024 - 09:02
        +3

        Yes

      • MagpieSilver on 29/05/2024 - 16:50

        I hate AMP. But at least it's all fast payments, no low daily limit, and their app doesn't suck.

    • payless69 on 28/05/2024 - 05:08
      -1

      AMP is sewage, MeHome to the rescue!
      5.55% rulez!

      • autolux on 29/05/2024 - 13:23
        +1

        whats wrong with AMP? only just signed up and waiting for the first month to begin transferring en masse cause bonus only starts from 2nd month. but overall seems good so far, pretty much like every other app.

        • payless69 on 29/05/2024 - 13:25
          -2

          May works for you, I have spent a total of 3 days on the phone to get account going on app.
          Card still not going.
          Dog water for me!

    • BigBirdy on 28/05/2024 - 08:33
      +4

      I use UBank and AMP Saver (& ANZ Plus) for savings, not transacting, and they all work well, no mucking around with card transactions. AMP pays the highest interest. Like UBank, transfer in the monthly deposit requirement ($1000), and transfer out that amount + interest estimate

      • Roe Jogan on 03/06/2024 - 14:04

        I feel like im the only one who needs a further break down of this setup solution, i feel like he is onto something

    • katotefu on 29/05/2024 - 00:48
      -2

      Too bad AMP is dog water though.

    • blazerunner on 31/05/2024 - 14:10

      Exactly what I was looking for after I read this, you da MVP

      • bdl on 03/06/2024 - 12:43

        MVP AMP

    • nghori on 07/06/2024 - 19:34

      AMP Saver doesn't allow direct debits it seems. which is a major pain for me.

  • Bredo on 28/05/2024 - 00:26
    +59

    Dammit, removing outbound payments from savings it's a deal breaker for me. Last thing I need is to miss a payment because I forgot to top-up a spend or bill account

    Besides Macquarie, which other banks allow outbound payments from savings and have a decent interest with minimal hoops to jump through each month?

    • Gojkins on 28/05/2024 - 00:54
      +27

      100% this, it's going to shit. First we had payments only from spend but we had auto sweep, so no worries. Then they get rid of auto sweep when they merge but allow payments from save. Now they get rid of payments from save… I feel like it was just an intermediate step so that people don't get too angry about auto sweep being removed.

      • Bredo on 28/05/2024 - 01:06
        +4

        Yes, completely agreed. That was the exact reason why I didn't ditch them back when they removed the auto sweep. Now to find the savings accounts with outbound payment and direct debits features, to pick a new home for my money

      • ForeverInBlueJeans on 28/05/2024 - 06:16

        The old 86400 had a low balance push notification, which is great for keeping track of when to top up, if like me most money is in save.
        If you go to account - cog wheel - set low balance.
        Handy feature

      • aboteh on 28/05/2024 - 10:38
        +6

        Totally agreed. Now they are like all the other banks. I wrote to them to telling it's bad decision. Hopefully something will change

        • Loopholio on 01/06/2024 - 16:11
          +1

          @aboteh I did so just now using their Give feebdack option in their app. I joined uBank to make things easy for me, now I have to think about my account's balance. I left Commonwealth Bank for this mob. I'm not going back, but I may have to find a new home for my money. =/

          • Loopholio on 07/06/2024 - 10:58

            @Loopholio: uBank got back to me. They clearly don't understand how disruptive this change is.

            Hi Name, 

            Thanks for the feedback - we've passed this onto our team.

            Our purpose of this change is to bring back the original intention of our savings account, to help you grow your savings towards your financial goal- it's all about maintaining a separate savings to make way for some exciting features. You can also vote on what features you'd like next on our roadmap- www.ubank.com.au/roadmap.

            If you have any further questions, you can find answers to our most frequently asked questions at ubank.com.au/help.

            Thanks, 
            Ollie from Team ubank

            13 30 80 (in Australia) or +61 2 9070 0202 (overseas)
            We're available Monday-Friday, 8am-8pm and Saturday & Sunday, 8am-6pm (Sydney time).

      • pinkybrain on 04/06/2024 - 01:11
        +2

        why they removed autosweep

        that is dumb with the new rule change

        now you will need to do manual transfer to the spend account to make payments

    • dsar on 28/05/2024 - 07:55
      +3

      Following this so intently:

      • Macquarie doesn't work with Beem It, presumably due to Eftpos
      • Macquarie doesn't have the use Eftpos Sav payment method in Apple Wallet
    • scotty on 28/05/2024 - 08:52
      +3

      IMO most useful feature for me. I'll still park most my money in Save and move to Spend manually when I need to pay the bills. Zero benefit for them and more work for me :(

      • rickb on 28/05/2024 - 08:56
        +11

        The hassle is not being able to schedule the bill payment from the Save account. You need a reminder to move the money on the day the bill is due.

    • theg00s3 on 28/05/2024 - 23:11
      +3

      yeah I've been using a ubank saver for my rent for well over a year now. Killing this feature means I've gotta find something else

    • bashar20 on 30/05/2024 - 08:18

      Does that mean you have to cycle $500 from otter bank to savings. Then savings to spend. Then spend to other bank account?

      • BigBirdy on 01/06/2024 - 17:08
        +1

        Just cycle the $500 into and out of your Spend account, no need to put it in Save

        To earn our bonus interest rates on your Save accounts from July 1st 2024, you must have a Spend account and deposit at least $500 each month into any of your Spend, Bills or Save accounts before 11:30pm (Sydney time) on the last day of each month. The $500 deposit must come from a non-ubank account (internal transfers between ubank accounts won’t qualify).

        • AndrewMTG on 21/06/2024 - 19:01

          do you mean u can like cycle $100 or $200 (the same money) between ubank and like westpac/cba/anz a few times and it'll count the $500?

          • timhn on 21/06/2024 - 21:12

            @AndrewMTG: Yes, just like all other banks that required you to meet certain deposit amount.

    • nickstar76 on 01/06/2024 - 16:43

      I have accounts with outbound payment for those accounts. Does anyone have a suggestion on where to go?

      • Pandaroo on 09/06/2024 - 06:52

        Yeah where is everyone moving to now. I'm thinking Macquarie. Ubank was sooo handy for paying my auto direct debits :(

    • KangaDrew on 28/05/2024 - 23:02

      🤡

  • onetwothreefour on 28/05/2024 - 06:02
    +7

    The only thing I care about is the rate, can't wait to see how they are changing it.

    • rickb on 28/05/2024 - 07:56
      +7

      Same thoughts for me. The tiers are what can kill it for me because I can work around the other terms.
      The fact that ubank has not revealed the details is interesting.

      • onetwothreefour on 28/05/2024 - 08:49
        +1

        Logic would say they want more of your money so they should have a higher interest rate for higher tiers but we all know logic doesn't always come into it.

        • katotefu on 29/05/2024 - 00:49
          +3

          Rate will definitely be inversely correlated to balance.

        • Iggemo on 30/05/2024 - 18:06
          +5

          There's no way in the world that's right, the rate will be higher for lower balances.

          • jumbokevin on 01/06/2024 - 03:19

            @Iggemo: Never understood why banks offer a lower rate for those with higher balances. Aren't banks trying to take as money in as possible?

            • non-core promise on 11/06/2024 - 19:32

              @jumbokevin: Banks make money from transaction fees when you spend.

              Having people who park huge amounts of money is counter-productive to that.

              They would prefer larger numbers of people with low to moderate savings that spend a bit rather than fewer people with high savings doing the bare minimum to meet the criteria.

  • leeroys_dad on 28/05/2024 - 08:58
    +36

    What terrible changes.
    No outgoing payments from save? Ridiculous

    Execs making suggestions to earn more money for the company and personal bonus at the expense of customer satisfaction and utility. Corporate greed

    • katotefu on 29/05/2024 - 00:50
      +6

      What is even the purpose of making such an annoying change? So people have to hold a balance in an everyday account that they don’t have to pay interest on? Ruining what makes ubank good.

    • rooon on 30/05/2024 - 16:32
      +4

      Sweep could have fixed this though they removed that as well. Destroying one of the only great savings accounts around.

      • shellct on 03/06/2024 - 18:10

        I totally agree, I really liked the sweep feature. Does any other bank offer this (with a decent interest rate?)

  • pyramid on 28/05/2024 - 09:14
    +18

    I think idea is to push people to keep more money in spend account so that U bank needs to pay less interest as people will have less money in save accounts.

  • ThriftyBargainHunter on 28/05/2024 - 09:48
    +14

    I have updated my Google Play review from 5 stars to 1 star. Would recommend everyone else does the same.
    I have also been a long-time Ubank customer, who initially had the Sweep feature, who was then told to setup Direct Debits to Save accounts. Now I have to invest "life energy" migrating my Direct Debits again.

    • aboteh on 28/05/2024 - 10:39
      +9

      Suggest you write to them and complain. If enough people do it, maybe something will change. Or flood their FB page?

      • Nixon2142 on 29/05/2024 - 00:04
        +4

        I've done just that, let's make some noise! (Banging a little drum)

      • dongltron on 29/05/2024 - 05:28
        +4

        They won't change anything if they don't want to. Don't be fooled into believing the customer actually holds any power.

        • payless69 on 29/05/2024 - 13:27
          +1

          Nab shares dropped 2.29% today, might buy some when they bottom out.

    • bimmeup on 07/06/2024 - 21:03

      I too have been a long time customer. I'm now looking at exiting Ubank. Competitors will be waiting in the wings to offer a better product to unhappy (and disappointed) Ubank customers.

  • bdl on 28/05/2024 - 10:13
    +2

    NAB being NAB :(

    • payless69 on 28/05/2024 - 10:24

      Randy Andy now wielding a stick?

  • Drakesy on 28/05/2024 - 10:29
    +8

    Good public service announcement TY OP
    UBank looks like they're getting progressively screwed down
    Off to Rabobank i go

  • Ocker on 28/05/2024 - 10:43
    +9

    Just noticed the ANZ Plus high interest saver account now contains the following message:
    "You can earn interest this way until 1st September 2024, after which additional criteria will apply that may affect how much interest you earn."
    No further details of what the changes will be, but for sure it will not be to the savers benefit.

    • Discombobulated on 28/05/2024 - 17:11

      Until whatever changes on 1 September, ANZ Plus is a good deal - 4.9% and no saving requirement. But as with UBank, there are no outgoing payments from the savings account and its via app only - no website access.

      • AndrewMTG on 21/06/2024 - 19:03

        is anz plus diff from normal anz.

        what's this anz plus?

        i know there's a seperate app aye

  • aboteh on 28/05/2024 - 10:49
    +1

    It's AMP or Rabobank I go

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