NAB-owned Ubank will now pay 4.35% p.a. as an everyday bonus rate on Save account balances up to $1 million.
That's a 0.25% p.a. cut on the previous rate of 4.60% p.a., in line with the Reserve Bank's cash rate cut on 12 August.
Save's four-month introductory bonus rate of 5.00% p.a. for new customers remains unchanged.
It includes a fixed bonus margin of 0.65% p.a. which applies for the entire welcome period before Save accounts roll onto the everyday bonus rate.
See also: The different types of savings account interest rates
It will see Ubank remain as one of only a handful of deposit-takers still offering an interest rate with a '5' in front although some banks are yet to adjust their savings rates.
But there's a catch
Last month, Ubank announced its new 5.00% introductory rate for new customers amid a raft of changes, including flattening its interest tier structure so that one everyday bonus rate applied to all account balances up to $1 million.
At the time, the changes effectively cut the bonus rate for existing customers with deposit amounts under $100,000 and lifted the rate for those with balances between $100,000.01 - $250,000.
In announcing the restructure, Ubank also flagged a new monthly balance growth requirement to achieve the bonus rate, taking effect from 1 October.
This will require customers to grow their combined balance across all Save accounts (they can have up to 10) by $1 each month, excluding any linked offset accounts and interest credits.
The new condition will effectively apply a withdrawal limit, seeing customers miss out on the bonus interest rate if they need to access their savings and aren't able to top their balance up within the month.
The base rate for all account balances remains at 0.00% unless monthly bonus rate conditions are met while balance amounts over $1 million also earn no interest.
See also: Are you missing out on bonus interest?
What is the best savings account?
Ubank is the latest high interest savings account to adjust rates after the August rate cut after ING dropped the rate of its popular Savings Maximiser account late on Friday.
ING chose not to pass on the full 0.25% p.a. cut to its Maximiser customers, cutting the top rate from 5.00% p.a. to 4.80% p.a. (down 0.20% p.a.) with the 0.05% p.a. base rate unchanged.
The Savings Maximiser also comes with conditions attached to achieving the top interest rate, including a monthly balance growth requirement.
Rabobank's four-month introductory rate of 5.15% p.a. on balances up to $250,000 - the highest rate on the market according to Savings.com.au's savings account database - as yet remains unchanged.
It reverts to an ongoing rate of 3.70% p.a., while Rabo's Premium Saver product is paying a rate of 4.80% p.a. on balances up to $250,000.
It also comes with a $200 balance growth requirement otherwise a base rate of 0.90% p.a. applies.
What are the best rates on no-condition savings accounts?
Macquarie Bank's popular no-condition Savings Account was the first to drop its savings rate after the August rate cut.
It now pays a four-month introductory rate of 4.60% p.a. on balances up to $250,000 with an ongoing rate of 4.25% p.a. on balances up to $2 million.
It's the same rate as AMP's new no-condition GO Save online savings product on balances up to $250,000.
GO Save launched last month and cut its variable rate to 4.25% p.a. from 4.50% p.a. on Friday.
Savings.com.au is tracking savings rate changes as they occur: Which banks are lowering savings rates after the RBA's August cut?
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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 |
