Up has alerted its Everyday and 2Up account holders that it's changing its Saver products to a new interest rate structure from 1 September.
The new "Grow & Flow" set-up is being marketed as a "dual" interest rate system that will pay a 4.85% p.a. top variable rate to customers who meet current bonus rate conditions and don't access their Saver accounts during a month.
The 'no access' condition will be a new addition to achieving the best rate.
It will be payable on total balances up to $250,000 over multiple Saver accounts where conditions have been met.
Now for the catch
But for accounts that have been accessed during the month for spending, withdrawals, or transfers, the new 'Flow' variable rate will drop to 1.50% p.a.
That rate will also apply to any combined balances over $250,000.
However, those who don't meet the transaction condition will continue to receive 0.00% interest as they do under the current structure.
It means the new "dual" rate is more accurately a triple rate structure given the 0.00% p.a. base rate remains.
See also: The different types of savings account interest rates
Here's how the new interest tiers will apply:
| Rate | Monthly Conditions & Notes |
| 4.85% p.a. |
|
| 1.50% p.a. |
|
| 0.00% p.a. |
|
It's worth noting once a Saver rate changes from Grow to Flow, the lower Flow rate will apply for the entire month.
What is Up's current Saver interest rate?
Up currently pays a bonus interest rate of 3.85% p.a. to Saver account holders who make five "successful" purchases within a calendar month.
These must be made using Up, 2Up, Essentials, or 2Up Essential debit cards, as well as eligible digital wallet payments in the same month.
The 3.85% p.a. bonus rate is currently paid on combined account balances up to $1 million.
If the transaction conditions aren't met, the base rate of 0.00% p.a. applies.
Notably, the current conditions allow free and unlimited withdrawals from Saver accounts without affecting bonus rate eligibility.
That access will change under the new rate regime with Saver account holders encouraged to set up multiple accounts to suit their own needs.
To achieve the best interest possible, savings accounts will need to be segregated from transaction accounts (ideally, just one of them).
See also: What's the difference between savings and transaction accounts?
What other features is Up introducing?
Up's Grow & Flow product will include tools to lock or hide Savers accounts and set up pay splitting.
It also allows for account holders to have up to 50 Saver accounts.
The changes represent yet another Australian deposit-taker imposing extra conditions for savings account holders to achieve the best interest rate available.
It follows a move by Ubank earlier this month in introducing new interest rate tiers to its popular Save product.
Ubank also flagged it will introduce a new balance growth requirement to achieve its top rate from 1 October.
ACCC research released in late-2023 revealed 71% of savings account customers don't meet their monthly bonus conditions.
See also: Are you getting the best interest rate on your savings?
See also: Which banks offer savings accounts above 5%?
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Denise Raward
Brooke Cooper
