The change to ubank's popular Save account takes effect immediately with only new customers eligible for the 5.00% p.a. welcome bonus rate on balances up to $1 million dollars for four months.
Previously, ubank did not offer a welcome or introductory rate.
See also: The different types of savings account interest rates
To qualify for it, new customers are considered those who haven't held any ubank products within the last 24 months.
Across the board, the eligibility criteria for achieving the Save account's top rates remains unchanged - customers must deposit at least $500 a month into a ubank Spend, Bills, or Save account from an external source.
Ubank has also flagged a new balance growth requirement to achieve the bonus rate which will take effect on 1 October. (More on this below)
Rate to drop for some account holders
For existing customers with deposit amounts under $100,000, their bonus interest rate will drop to 4.60% p.a. - down from the old bonus rate of 4.85% p.a.
Meantime, 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.
From now on, there will only be two balance tiers on ubank Save accounts, as follows:
| Balance | Base rate | Everyday Bonus Rate |
|---|---|---|
| On the part of the balance $0 - $ 1 million | 0.00% | 4.60% p.a. |
| On the part of the balance $1,000,000.01 and above | 0.00% | 0.00% p.a. |
Previously, ubank Save accounts had three balance tiers, with the former middle tier for amounts between $100,00.01 and $250,000 now removed.
Ubank said the changes are part of how it's "making banking simpler and easier".
Many high-interest savings accounts only offer their top rates on balances up to $250,000 with interest rates falling away for higher amounts or, as under ubank's previous structure, paying no interest at all.
The new ubank deal for amounts up to $1 million throws down the gauntlet to Macquarie Bank's Savings Account which currently offers 4.50% p.a. on balances up to $1 million after a four-month introductory rate of 4.85% p.a. on balances up to $250,000.
But, notably, Macquarie's Savings Account comes with no conditions for achieving its top rates.
See also: Are you getting the best interest rate on your savings?
More changes on the way
In announcing the changes, ubank has also signalled there will be a new balance growth condition on achieving the bonus rate that will take effect on 1 October.
Save account holders will need to grow their combined balance across all their Save accounts (customers can have up to 10) by $1 each month.
This excludes any linked offset accounts and interest credits.
The change will effectively apply a withdrawal limit on the Save account, seeing customers miss out on the bonus interest rate if they need to access their savings and aren't able to top up their balance within the month.
Ubank says it will "make some changes to its app and online banking experience to help customers see whether they've met the bonus interest criteria for the month".
Beware conditional creep
However, it's yet another barrier to customers achieving the top interest rate on their savings accounts.
In 2023, a study by the Australian Competition and Consumer Commission found 71% of all savings accounts with a conditional interest rate didn't receive the bonus rate during its study period.
Its report calculated Australians were missing out on billions of dollars of interest on savings each year because of conditions that are difficult for customers to meet and keep track of.
The report recommended banks and other ADIs be required to alert customers to give them a chance to meet bonus conditions.
Ubank currently issues "friendly nudges" through its app while in 2024, Westpac introduced a mobile push notification system to alert its customers on how to earn bonus interest.
Other deposit takers say they provide checking facilities through their apps although these may not necessarily serve as alerts.
How do other high-interest savings accounts stack up?
For those on the lookout for a new savings account, there are better introductory rates on the market.
Rabobank's High Interest Savings Account is offering 5.15% p.a. for the first four months for amounts up to $250,000, reverting to a standard variable rate of 3.70% p.a. after that and paying 3.00% p.a. for amounts over $250,000.
Its ongoing rates fall short of ubank's new Everyday bonus rate for amounts up to $1 million.
ING's Savings Maximiser also pays a top variable rate of 5.00% p.a. but only on balances up to $100,000.
It also comes with more conditions to achieving it, including a $1,000 monthly deposit and a set number of card purchases.
All up, however, savings accounts offering north of 5% are becoming fewer and far between.
From 1 October, for those uncomfortable with Save's balance growth condition, ME Bank's HomeME digital-only savings account currently offers 4.85% p.a. on balances up to $100,000 with no withdrawal restrictions.
The bonus rate drops to 2.85% p.a. for amounts between $100,000 to $1 million.
HomeME customers must deposit a minimum of $2,000 a month into a linked SpendME account to qualify for bonus rates.
Another tweak for Ubank Save
NAB's digital arm ubank has regularly adjusted the rates and conditions on its Save product in recent times.
Like most other banks, it passed on the May and February cash rate cuts to its Save account customers.
In May, it also introduced an income split feature allowing customers to divide their pay between their Save, Bills, and Spend accounts, theoretically making it easier for Save customers to achieve the $500 deposit requirement to achieve the bonus interest rate.
On 1 July 2024, it introduced a tiered structure for Save interest rates and no longer allowed customers to make external payments from their Save accounts.
It meant account holders were required to set up separate Bills or Spend accounts to make payments.
Nonetheless, ubank's Save account has proved a popular product, particularly with the 18-35-year-old demographic.
Ubank currently serves almost one million customers, reporting 16% year-over-year customer growth and an 11.5% increase in its deposit book as of May 2025.
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Denise Raward
Harry O'Sullivan
Jacob Cocciolone