Australian digital bank UBank has made significant changes to its bank account products.
UBank, which is owned by the National Australia Bank (one of the four largest financial institutions in Australia), confirmed on May 11, 2020 that it will be simplifying its digital product offerings, in order to “increase flexibility and ease for Australians wanting to take control of their finances in the current economic climate.”
UBank will be offering bonus interest which will be spread across customer accounts.
The digital bank has joined many other local financial service providers that allow customers to earn a bonus interest rate on multiple accounts.
The bank’s customers will have the option of earning the maximum interest rate (1.60% per annum right now) on 10 different accounts.
UBank has also introduced simplified names. The USaver Ultra account is now referred to as USpend. The new digital offering aims to make it easier for customers to identify their transaction account. The USaver account is now referred to as USave, so that it’s easy for people to recognize their savings account.
UBank’s management is also offering an increased maximum deposit limit for bonus interest. The combined balance of all of the bank’s customers’ USave and USpend accounts can be as high as $250,000. These funds will be eligible to earn bonus interest.
This is notably a $50,000 increase from the previous $200,000 limit, meaning that customers can take advantage of the bank’s maximum interest rate on a larger amount.
UBank said that it will also allow savings customers to disable certain features that don’t meet their requirements, like Sweep Technology which allows users for automatic transfers between USave and USpend accounts.
Glen Aiton, acting CEO at UBank, noted that the changes were made after obtaining feedback from the bank’s clients.
Aiton remarked:
“We’ve always had a simple suite of products that we offer without any ongoing account keeping fees. But in response to customer feedback, we’re making some of our biggest product changes in several years, to make their experience even better.”
He added:
“And, in this current environment, we think these improvements will really help Australians closely manage and maximise their finances. These are four of the key areas our customers have spoken up about and we’re thrilled to introduce them, particularly at a time when taking control of your finances is so critical.”