UBank to cut savings account, term deposit rates

author-avatar By
on March 06, 2020
UBank to cut savings account, term deposit rates

Photo by Jelleke Vanooteghem on Unsplash

NAB-owned UBank has been quick to cut its interest rates for savers in the wake of Tuesday's cash rate cut from the Reserve Bank.

The online bank announced today it will pass on the full 25 basis point rate cut made by the Reserve Bank (RBA) to its savings account interest rates, which includes the following products:

  • USaver;
  • USaver Reach; and
  • USaver SMSF

On the change, a UBank spokesperson said: "We regularly review our interest rates to make sure we’re always offering highly competitive rates to both our home loans and savings customers,"

"It’s important we strike the right balance between delivering great value to our customers, responding to changing marketing conditions and managing our business sustainably."

That 25 basis point cut is being made to the base variable rate on the products.

The USaver Ultra bonus variable rate remains at 1.06% p.a. for eligible customers who link their account to a USaver Ultra transaction account and meet the bonus criteria.

This means the maximum interest rate UBank savers can earn is now only 1.85% p.a - just 5 basis points above the current rate of inflation (1.80%). 

To qualify for the maximum interest rate, USaver customers need to:

  • Deposit at least $200 per month 
  • Keep their account balance below $200,000 
  • Link the account to a UBank transaction account 

The table below displays a snapshot of savings accounts with some of the highest non-introductory interest rates on the market. UBank's interest rate will fall on 9 March 2020. 

Lender

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Savings Account (Amounts < $24k)

    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

    High Interest Savings Account (< $250k)

      4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

      Online Saver ($1-$100k)

        0100$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

        Mighty Saver

          000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

          Online Savings Account (<$250k)

            4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

            Lifestyle Account (< $75k)

              000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

              Bonus Saver Account (Amounts < $100k)

                Rates based on a savings balance of $10,000. Introductory bonus interest rate products not included. Sorted by total interest rates. Refer to providers' websites for bonus rate conditions. Rates correct as of May 24, 2022. View disclaimer.

                UBank also announced it would cut its variable home loan interest rates by 25 basis points on 3 April, a whole 31 days after the RBA rate cut.

                UBank also drops deposit rates

                UBank also announced it would be cutting term deposit rates, but not by the full 25 basis points. 

                According to UBank it will be cutting deposit rates by:

                • 15 basis points for its six-month term; and
                • 10 basis points for all other terms and SMSF customers 

                As with savings accounts, UBank's term deposit cuts will come into effect on March 9. 

                The highest deposit rate it now offers is 1.70% p.a for six months. 

                Want to earn a fixed interest rate on your cash? The table below features term deposits with some of the highest interest rates on the market for a six-month term.

                Lender

                Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

                Personal Term Deposit - 6 months (Annually)

                  At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]5000$product[$field["value"]]$product[$field["value"]]More details

                  Term Deposit - 6 months

                    At Maturity, Annually$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details

                    Term Deposit - 6 months ($10k-$250k)

                      Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

                      Edvest Term Deposit I20 ($1000-$499999) - 6 months

                        Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

                        Term Deposit I10 ($1000-$499999) - 6 months

                          Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]250000$product[$field["value"]]$product[$field["value"]]More details

                          Term Deposit ($250k+) - 6 Months

                            Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]100031$product[$field["value"]]$product[$field["value"]]More details

                            Term Deposit (> $1000) - 6 months

                              Annually, At Maturity$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]1000031$product[$field["value"]]$product[$field["value"]]More details
                              FLEXIBLE INTEREST AND REPAYMENT TERMS
                              • Interest can be paid to other institution
                              • Automatic maturity rollover
                              • Early Withdrawal Available
                              FLEXIBLE INTEREST AND REPAYMENT TERMS

                              Term Deposit (<$1m) - 6 months

                              • Interest can be paid to other institution
                              • Automatic maturity rollover
                              • Early Withdrawal Available

                              Rates based on a $50,000 deposit for 6 months. Rates correct as of May 24, 2022. View disclaimer.

                              What previous changes has UBank made? 

                              In 2019's three previous rate cut months: June, July and October, UBank made the following cuts to its savings account interest rates:

                              WIth the Reserve Bank cutting the cash rate by a total of 100 basis points in the past 10 months, UBank's maximum savings account interest rate for the USaver Ultra savings account has fallen by 102 basis points. 

                              Before the RBA cut in June 2019, the account had a maximum interest rate of 2.87% p.a. 


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                              author-avatar
                              William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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