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How (and why!) you should keep your account active

We’ve come up with a handy 101 on why you should keep your account active, and how to reactivate it, if you ever need to.

Active vs. dormant – what’s the difference?

  • Active account – Unsurprisingly, an active account is a fully functional bank account you can access with no restrictions when it comes to transacting, making withdrawals or deposits.

  • Dormant account – You know how when a volcano becomes dormant it means it’s no longer active? The same goes for your bank account. At UBank, if your account is inactive for 3 years* (no deposits or withdrawals), it’ll be marked as dormant, which means you can’t make any withdrawals until you reactivate it.


* Different banks have different time periods on dormant accounts but, after 7 years, all Australian banks are required to close certain accounts for regulatory reasons.

How can I avoid my account going dormant?

Or maybe the better question is, ‘why should I keep my UBank account active’? If you haven’t been using your USaver savings account or Ultra transaction account for the last few years – we’ve added some amazing perks, products and features to our offering.

  • Bonus interest rate: When you sign up for a USaver and a linked Ultra account, you’ll unlock a bonus interest rate of 2.10% p.a.* on your savings. That’s one of the most competitive interest rates in the Aussie market and a huge incentive to save and transact with us.

  • No overseas fees: on your UBank VISA debit card when travelling the globe. This means that both ATM and foreign exchange fees won’t be charged by UBank, leaving you free to enjoy more of your well-earned spending money on things that matter to you (although you may be a charged a fee by the ATM operator).

  • Free2Spend: our incredible in-app budgeting tool that lets you know exactly how much money you’re free to spend, every day, while still saving for a specific goal. You put in your income, expenses, how much you want to save and when you need to save it by. Free2Spend takes care of the rest, generating a daily number you can put towards after work drinks or that last minute birthday present for Mum, while still working towards those #goals.

What do I do if my account has gone dormant?

Don’t worry. It’s an easy fix. All you have to do is jump on the phone and give us a call. We’ll have your account reactivated within 2 business days.

From there, all you need to do is make a deposit into the account (and this can be as little as $0.01!) within another 2 business days and you’re good to go.

Whether you decide to take advantage of our amazing perks and regularly transact with us, or make semi-frequent deposits to keep your account active, it’s important to be ‘in the know’ when it comes to your account.


*If you’ve got a USaver, you’ll have access to an interest rate of 1.04% p.a. This is boosted to 2.10% p.a. when you have both a USaver and an Ultra account, deposit $200 per month and keep your balance under $200k.


The information contained in this article is of a general nature only. It doesn’t take account of any person’s objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your circumstances and seek independent legal, financial, and taxation advice.