The changes to interest rate calculations on Ubank's Save account, announced in July, take effect from Wednesday 1 October.
Ubank will introduce a balance growth requirement, requiring customers to increase their combined Save account balances by at least $1 a month to qualify for monthly bonus interest.
See also: What are the different types of savings account interest rates?
Previous interest credits are not counted, neither are accounts linked as offsets to home loans.
It marks another hurdle to achieving the popular Save account's top interest rate.
Yet another hoop
From its launch as a division of NAB in 2008, Ubank's fully digital Save account was widely taken up as a cutting edge, 'no-frills' savings product, particularly among the 18-35-year-old demographic.
NAB's latest half-year report in May 2025 revealed Ubank had almost one million customers, recording 16% year-on-year growth, with a deposit book of $21.4 billion, a jump of 11.5%.
Yet, murmurings of discontent with Ubank's Save account began in June 2024, when the digital bank announced it was halting external payments from Save accounts and introducing interest rate tiers.
The changes required customers to open separate Spend or Bills accounts and lifted the monthly external deposit requirement to $500 to qualify for bonus interest.
See also: What's the difference between savings accounts & transaction accounts?
In July 2025, it announced a re-jigged interest rate tier structure amid the launch of a new 5% introductory rate for new customers on balances up to $1 million for four months.
See also: High Introductory Savings Account Rates
It also flagged the new balance growth condition taking effect on 1 October.
The base rate for all account balances is 0.00% unless all monthly bonus rate conditions are met.
The announcement sparked some criticism on online consumer forums with some purported Ubank Save customers looking for alternative savings account products.
Conditional creep continues
The change represents yet another barrier to Australians achieving the top interest rate on their savings accounts.
An Australian Competition and Consumer Commission (ACCC) report in 2023 found 71% of all savings accounts with a conditional interest rate didn't receive the bonus rate during its study period.
It calculated Australians were missing out on billions of dollars in interest on savings each year because of conditions that are difficult for customers to meet and keep track of.
See also: Are you missing out on bonus interest?
The ACCC recommended banks and other ADIs be required to alert customers to give them a chance to meet bonus conditions.
Regulators so far haven't acted on the recommendation but Ubank's website says it will send "friendly nudges" via its app to help Save customers earn bonus interest.
This also comes as ANZ was found to have incorrectly withheld $480,000 in interest payments to tens of thousands of deposit customers, with ASIC fining the major bank $40 million.
What savings accounts come with no conditions?
In recent years, savings accounts with no or few conditions have become increasingly scarce as more banks and deposit-takers have pursued 'strings attached' models of paying interest.
Some savings accounts on the market with no or few conditions include:
- Macquarie Bank Savings Account - no minimum deposits or balance growth requirements
- AMP Go Save - digital-only account with no deposit, withdrawal, or minimum deposit conditions
- Australian Unity Freedom Saver - no deposit or withdrawal requirements
- MEBank's HomeME - requires monthly $2,000 external deposit into linked SpendME account. No withdrawal or balance growth conditions
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Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.
| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
0.05% p.a. Bonus rate of 5.30% Rate varies on savings amount. | 5.35% p.a. | $1,097 | – | $0 | $249,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
2.25% p.a. Bonus rate of 3.15% Rate varies on savings amount. | 6.00% p.a. Intro rate for 4 months then 5.40% p.a. | $1,134 | 4 months | $0 | $499,999 | $0 | $0 | $0 | Promoted | Disclosure | |||||||||
4.00% p.a. | 5.90% p.a. Intro rate for 4 months then 4.00% p.a. | $936 | 4 months | $0 | $249,999 | $0 | $1 | $0 | Disclosure |
