Media release

Ubank announces new bonus interest rate for savers


Comes as new Gen Z and Millennial research reveals the rising cost of living is making it increasingly difficult to manage their finances yet they remain optimistic about their savings and budgeting ability.

Following today’s decision by the Reserve Bank of Australia that the cash rate will remain on hold, Australia’s award-winning digital bank, Ubank, will increase its maximum bonus interest rate to 5.50% p.a. on its Save product, effective 1 July 2024.

It comes as new Gen Z and Millennial research commissioned by Ubank found among all respondents, the top three most important banking features included low to no monthly fees (49 per cent), competitive interest rates (39 per cent) and an easy-to-use app (33 per cent).

The research also found that among all Gen Z and Millennials, 79 per cent reported the rising cost of living is making it increasingly difficult to manage their finances. Despite this, two thirds of respondents (66 per cent) remain optimistic, reporting they are confident in their saving and budgeting ability over the next 12 months.

This is supported by recent NAB research, which reported savings aspirations remain very high with almost eight in 10 Australians trying to save. On balance, the share of Australians expecting their savings to rise in the next 12 months is now positive for the first time in nearly two years.

Ubank’s Chief Product and Growth Officer, Andrew Morrison, said: “The new bonus interest rate that we are announcing today is one of the most competitive in the market and is an awesome opportunity for customers, new and existing, to make their money work harder for them.”

The bank has also introduced new bonus interest tiers that means the vast majority of Ubank’s eligible Save customers are better off come 1 July.

The new tiering structure means customers who meet Ubank’s simple bonus interest criteria will earn 5.50% p.a. interest on their savings between $0 and $100,000.00. Then 5.00% p.a. applies to the next portion of a customer’s savings (from $100,000.01 to $250,000.00).

To earn bonus interest, Ubank customers simply need to deposit at least $500 each month into any of their Spend, Bills, or Save accounts, making it easier for them to take greater control of their finances.

New app features for saving and day to day money management

According to Ubank’s research, among those Gen Z and Millennials with personal savings (80 per cent), the overwhelming majority (82 per cent) contributed some amount of their take-home pay to their savings.

Among this group of savers, 66 per cent set specific targets and 72 per cent had separate buckets. However, only 42 per cent of savers reported to have more savings compared to last year and 25 per cent reported to have less than they did 12 months ago despite their efforts to save.

Mr Morrison said the results were not surprising. “Despite the ongoing cost of living pressures impacting younger Australians, what’s heartening is that they remain optimistic about their ability to save.

“The research shows us that many young Australians are prioritising saving and implementing proven money management practices like setting targets and bucketing their money to reach their financial goals,” he said.

Today’s rate announcement is part of Ubank’s broader everyday banking and app strategy focused on growing and scaling customers in the young adult segment.

Throughout 2024, the bank is progressively rolling out a suite of new app features and functionality aimed at supporting its younger cohort of customers to manage their money from day to day including Pay Cycle, Bill Planner and a separate Bills account. The latest feature announced to customers is Spotted Bills, which automatically searches for recurring payments and allows customers to add them to their Bill Planner to see what’s coming up.

The bank also announced it will update the functionality of its Save account to help customers keep their Save for saving money and use their Spend and the newly launched Bills account for their everyday spending and committed expenses.

Mr Morrison continued: “We’re designing our products and services to simplify how our customers manage their money. With our great savings rate, Spend, Bills and Save accounts working alongside our app features like Pay Cycle and Bill Planner, we’re focused on enhancing our customers’ banking experience and ensure they always have full control of their finances.”

For more information on Ubank’s products and services including what’s new, visit:
For more Ubank Newsroom stories, visit:

About the research

All figures, unless otherwise stated, are from YouGov. Total sample size was 1311 adults. Fieldwork was undertaken between 31st May – 6th June 2024. The survey was carried out online. The figures have been weighted and are representative of all Australian Gen Z and Millennials (aged 18 to 43).

Media enquiries

For media enquiries, please email