AMP's new app-based GO Save account is offering a variable interest rate of 4.50% p.a. on balances up to $250,000.
The rate matches one of the market's leading no-condition savings products, Macquarie Bank's Savings Account, although Macquarie offers a 4.85% p.a. welcome rate for four months with the ongoing rate of 4.50% applying to balances up to $1 million.
The AMP Bank product is only available through its GO app and must be linked to a GO Everyday transaction account, which pays no interest.
The GO Save account has no deposit or withdrawal conditions, or minimum balance requirements to achieve the interest rate and comes with no monthly fees.
Interest is calculated daily and paid on the first day of the following month.
The rate drops to 3.75% p.a. for account balances between $250.000.01-$5 million and 0.00% for balances over $5 million.
See also: Guide to AMP Bank Savings Accounts
Well-timed launch
The GO Save account launches in the same week that ubank revealed its popular Save account will have a new balance growth condition to achieve its bonus interest rate from 1 October.
Account holders will need to grow their combined balance across all their Save accounts (customers can have up to 10) by at least $1 each month, excluding linked offset accounts and interest credits.
The upcoming condition was slipped in with the sweetener announcement the product is now paying a 5.00% p.a. welcome bonus rate to new account holders for four months.
However, new sign-ups will still have to meet the bonus conditions to receive the new introductory rate.
See also: Which banks offer savings accounts above 5%?
However, existing customers with balances under $100,000 will see their bonus interest rate drop to 4.60% p.a. - down from the old bonus rate of 4.85% p.a.
At the same time, those with balances between $100,000.01 and $250,000 will see their rate rise to 4.60% p.a. - up from 4.40% p.a.
The 4.60% p.a. bonus rate will now apply to balances up to $1 million while those not meeting the conditions will receive no interest for the month.
The existing condition of having to deposit a minimum $500 a month into a ubank Save, Bills, or Spend account remains unchanged.
Death by a thousand conditions
But it was the announcement of the new balance growth condition that drew the most criticism online with some purported ubank Save customers vowing to move their cash by October.
An alternative suggested by many Redditors was Macquarie's no condition Savings Account, with its ongoing variable interest rate of 4.50%.
It's perhaps no coincidence AMP Bank has pitched its new savings product at the same variable rate, albeit capped at a lower account balance.
Many Redditors lamented the slow creep of conditions on the market's leading savings products over recent years, making it increasingly difficult to achieve the maximum rates possible.
Indeed, a study by the Australian Competition and Consumer Commission in 2023 found 71% of all savings accounts with a conditional interest rates did not receive the bonus interest rate during its study period.
See also: How to get the best interest rate on your savings
Director of AMP Bank GO John Arnott said the new savings product aims to simplify savings by providing flexibility and transparency to customers who value it.
"In a market where many banks are adding hurdles - like monthly deposit requirements or limited withdrawals - [we] are doing the opposite," he told Savings.com.au.
Mr Arnott said the new GO savings accounts are designed for digitally savvy Australians and small businesses who value simplicity, flexibility, and competitive returns.
"The early response to our accounts has been very positive," Mr Arnott said. "Customers have told us they like a straightforward 'what you see is what you get' offer.
"We've built our savings accounts with 'no catches' in direct response to what customers told us they wanted."
AMP Bank's no-condition GO Save account is available to Australian residents aged 15 or over with a valid email address and Australian mobile number and an active Everyday GO account.
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Denise Raward
Aaron Bell
