Digital bank Up confirms super-competitive interest rate on its savings account
From February, Up customers will earn a competitive ongoing rate of 2.75% p.a. on their Savers Accounts.
Digital bank Up, which launched back in October 2018, has confirmed the interest rate on its Up Savers Account will be an ongoing 2.75% p.a. for customers from 1 February. This rate includes a standard rate of 0.75% p.a. and a bonus rate of 2.00% p.a. each month that the account conditions are met. This rate is fairly competitive in today's low-rate environment.
From launch, Up had this rate set as an introductory rate for the first four months after opening the account. However, customers will be pleased to know the 2.75% p.a. rate is here to stay, with customers eligible to earn this rate each month they make five or more transactions from their linked Up transaction account. Customers can open as many Up Savers as they want instantly from within the app; however, the 2.75% p.a. interest rate will be applied on their combined balance across all their Up Savers up to a maximum of $50,000.
This rate is quite competitive in today's low-rate environment. In comparison, ING's popular Savings Maximiser account offers customers a bonus rate of 2.80% p.a. on balances up to $100,000. ING also requires customers to make at least five card transactions in the month to be eligible for the bonus rate; however, customers also need to deposit at least $1000 a month to be eligible. Up doesn't have any monthly deposit requirements. The five monthly transactions made from the linked Up Everyday Account can be made using the physical debit card or can be transactions made via Apple Pay, Google Pay or Samsung Pay.
Along with the competitive interest rate, Up has recently launched a range of digital features within its app that will help it compete with other neobanks and traditional players like the Big Four. In December, the bank launched its payments feature to customers, which is Up's feature for sending and receiving money. The feature looks and feels like a conversation within a social media platform, rather than a bank transfer.
You can compare Up with other digital banks in our digital banking comparison here.