Ubank's high-interest Save account currently offers one of the best bonus rates on the market - 5.10% p.a. for balances under $100,000 - without too many obstacles to achieving it.
See also: The different types of savings account interest rates
Ubank customers must deposit at least $500 into any Save, Spend, or Bills account each month (not including internal transfers) to earn the maximum interest rate - an incentive for account holders to deposit their regular pay.
Now the launch of the new Split Income feature on the Ubank app will allow customers to automatically divide their pay between their accounts on payday.
(A tip for users: make sure one of your accounts always gets $500 deposited each month. Bonus interest is also not affected by you withdrawing it later.)
Ubank's app features built-in budgeting tools targetting younger people looking to achieve their financial goals.
Employers' payroll software may enable this as well, but users might find it easier to manage within their banking app.
The new Split Income feature builds on the success of the app's Pay Cycle feature, which has been taken up by 23% of Ubank's customers.
It displays the time until the next payday and provides insights into income and expenses, aiming to help customers better manage their cash flow.
Young people still optimistic about the future
The new feature has been launched amid Ubank's latest research which shows around half of younger Australians are optimistic they will live a happy life, despite the financial challenges they face.
The survey revealed younger people (aged 18-35) were more optimistic than older generations, with 55% hopeful about owning their own home and 54% confident in having enough money to save and invest.
The top financial concern among all Australians was unsurprisingly the cost of living followed by housing access and affordability.
Housing concerns were more pronounced among 26-35 years olds, with 62% expressing a high level of concern.
Ubank chief customer experience officer Andrew Morrison said the survey gives cause for optimism.
"Just like the research suggests, when we speak to our customers, we see an optimistic, engaged, and empowered generation seeking to take greater control of their money, better understand their finances, make more informed decisions, and have greater input into their futures," he said.
"They recognise the challenges but believe they can still achieve their goals, including the great Australian dream of home ownership, even if it takes longer than for previous generations."
Ubank is currently offering a variable home loan interest rate of 5.84% p.a. (5.86% p.a. comparison rate*), but only to borrowers with a loan-to-value ratio (LVR) of 60% or less.
The rate climbs to 5.89% p.a. (5.91% p.a. comparison rate*) for LVRs up to 80%.
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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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
3.00% p.a. | 6.25% p.a. Intro rate for 3 months then 3.00% p.a. | $769 | 3 months | $0 | $99,999 | $0 | $0 | $0 |
| Promoted | 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 | ||||||||
5.05% p.a. | 5.05% p.a. | $1,034 | – | $0 | $99,999,999 | $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 |
