Ubank Savings Accounts

Compare ubank savings accounts with Savvy to find the best place to stash your cash

Last updated on June 17th, 2022 at 11:12 am by Cate Cook

Ubank was founded in 2008 as one of Australia’s first digital banks, providing banking products such as transaction and savings accounts purely through mobile banking.  Bought by NAB and operating under their banking licence, ubank was merged with neobank 86 400 in 2021. 

It’s important to compare the savings account offered by ubank with Savvy to get a good idea of where their interest rate stands in relation to their competitors.  We give you the tools and information you need to make an informed decision on which offer is best for your savings. Start comparing with Savvy today!   

*Please note that Savvy does not represent ubank for their banking products.

Compare and find the best savings accounts

What savings account products does ubank offer?

Ubank’s banking products reflect the approach of appealing to younger Australians, with just two accounts on offer: a ‘Save’ account and a ‘Spend’ account.  When you open one type of account, you automatically get the other, so these accounts go hand-in-hand.  You can open up to ten Save accounts and name them for different savings goals, but you’ll only need one Spend account to link them all to. 

Ubank Save interest rate 

The ubank Save account (which used to be known as a USave account) offers a very generous interest rate of 1.35% p.a.  This interest rate is made up of a 0.10% p.a. base rate and a 1.25% p.a. bonus rate.  Compared to these other banks, an interest rate of 1.35% p.a. will grow your savings more than twice as fast.  You can see in the table below the impact a higher interest rate can have on your savings over a relatively short period. 

The effect of increasing interest rates on a $10,000 savings account p.a.

Name of Bank Interest rate offered on savings Interest earned per year
ubank
1.35% p.a.
$135
BankSA
0.5% p.a.
$50
Bank Australia
0.4% p.a.
$40
Commonwealth Bank
0.25% p.a.
$25

What conditions are there to receive the bonus ubank interest rate?

Ubank has just one condition attached to receive this interest rate: that you deposit at least $200 a month into any of your Spend or Save accounts.  Other than this basic stipulation to receive bonus interest, there are no minimum account balances required and no restrictions on making withdrawals.  Interest is calculated daily and paid back into your Save account monthly.  If you want to work out how much your savings account will grow with ubank’s high interest rate, you can use Savvy’s savings calculator to do your sums. 

How do I open a ubank Save account?

Being an online-only bank, all ubank accounts are opened by downloading the ubank app.  The process only takes two minutes and can be completed by downloading the ubank app from the App Store, Google Play or wherever you get your mobile apps from. 

The minimum age to open a Save account is 16 years and you’ll have to be either an Australian citizen or permanent resident.  You’ll also need to provide proof of your identity, so have any of the following documents handy to make up your 100 points of ID: 

  • passport 
  • driver’s licence 
  • Medicare card 
  • credit or debit card  

Once you’ve completed the simple online opening process, you’re ready to transfer money into your new Save account and start using the app. 

What additional features are available with ubank savings accounts?

Some of the key added features which come with ubank’s Save account include:  

Save, but pay bills 

Ubank’s Save account allows you to pay bills using BPAY, PayID and Osko, and set up direct debits to pay your utility bills, so there’s no need to transfer money into your everyday transaction account to do so. 

Savings Target Plan 

Up to ten Save accounts can be opened per person and each one can be given a separate name and linked to a motivational goal.  Each account can be assigned a savings target, and your app will develop a savings plan to ensure the target is reached.  For example, if you want to save $2,000 for an overseas holiday in 18 months, the app will remind you to put approximately $18 a week into your ‘overseas holiday’ account. 

Lock your cards and account remotely 

If your linked debit card is lost or stolen, you can lock it instantly using the mobile app, or if your phone is stolen, you can log on using another device to lock your card and account. 

Spending Footprint 

This feature categorises and summarizes your spending into different buckets, such as shopping, drink and dine, entertainment, essentials and more.  It shows you how much you’ve spent that month in each of these spending categories. 

Pros and cons of NAB savings accounts

PROS

Ground-breaking mobile app 

Ubank’s award-winning mobile banking app offers a wide range of innovative features which are not necessarily available with other banks, such as savings goal-setting, motivational messages, notifications, and spending summarising. 

No fees 

ubank doesn’t charge any fees on any of its accounts, so you can open as many Save accounts as you wish (up to a maximum of ten) with no fees to worry about. 

Highest interest offered 

The bonus interest rate offered on ubank’s Save online savings account is one of the highest of any financial institution in Australia, so you can be sure your savings are growing as quickly as possible. 

CONS

Limited product range  

There’s a minimum age of 16 years to open a Save account with ubank and no special products for children under this age or aged pensioners, so their product range is not as extensive as larger banks. 

Linked Spend and Save accounts

If you want a Save account, you’ll get a Spend account too (whether you think you’ll use it or not) and there’s no option to opt out of opening this additional account.

No term deposits offered 

Up until August 2020 ubank did offer term deposits, but no new term deposits are currently being offered, meaning you’ll have to look elsewhere to lock up your savings.