Ubank Save has tricky new interest conditions: Time to switch?
Customers now need to grow their balance each month to earn interest on the Ubank Save account.
Ubank has introduced a new requirement for customers to earn interest on its Save account.
You'll now need to grow your Save account balance by the end of the month in order to be eligible for bonus interest, as well as hold a Ubank Spend account.
You'll need to meet this new condition to qualify for both the welcome bonus rate of 5.00% p.a. (only available to new customers), and the ongoing bonus rate of 4.35% p.a.
However, the previous condition of depositing $500 a month has now been removed.
Don't want to jump through any hoops?
Check out these savings accounts with no conditions to meet.
What does this change mean for Ubank customers?
In order to earn bonus interest, your total combined Save account balance must now be higher at the end of the month than it was at the start.
You can grow your balance by just $1 (excluding any interest earned) to meet this requirement.
While you can make withdrawals from the account throughout the month, you now need to replace the money to ensure your balance finishes the month higher.
If you fail to grow your balance, you'll earn no interest for that month.
This condition may not seem too difficult to meet, but it will take a bit of extra planning.
Plus, if you need to withdraw money one month for an unexpected expense and you can't replace it before the end of the month you'll earn no interest.
Is it time to switch savings accounts?
Ubank Save still offers a competitive ongoing bonus rate, and it pays it on large balances up to $1 million which isn't very common.
If you rarely need to take money out of your savings account, this change might not impact you much. In that case, it may not be worth the hassel of switching banks.
But if you think this new condition will be too difficult to meet you could consider switching to an account with easier conditions.
Here are a few savings accounts with strong ongoing interest rates and no conditions to meet at all.
1. Macquarie Savings Account
You can earn a welcome bonus rate of 4.60% p.a. on balances up to $250,000, followed by an ongoing variable rate of 4.25% p.a. on balances up to $2 million with no conditions to meet.
2. Australian Unity Freedom Saver Account
You can earn an ongoing variable rate of 4.35% p.a. on balances up to $50,000 with no conditions to meet.
3. AMP Go Save Account
You can earn an ongoing variabe rate of 4.25% p.a. on balances up to $250,000 with no conditions to meet.
4. Bank of Queensland Simple Saver Account
You can earn an ongoing variable rate of 4.05% p.a. on balances up to $5 million with no account conditions to meet.
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