UBANK Savings Vs Term Deposit

expertreader on 01/11/2013 - 20:12

I am sure this question would have been discussed before(as I know ozbargainers)but I couldnt find any useful info. Why would UBANK have their savings and term deposit rated so close to each other making term deposit less appealing? Is there a catch in going for savings account other than variable interest rate vs fix interest rate on the term deposit?

With recent trend of banks hiking interest rates, it seems that the rates are going to go higher anyway so wouldnt I be better off keeping money in the savings account at this stage?

I have tried to setup a poll to see what you guys reckon? I am not asking for financial advise in a professional manner, just wanted to know your opinion.

FYI : I have got about 50k in the Ubank savings account at the moment.

Poll Options expired

  • 20
    Keep money in Savings
  • 0
    Keep money in Term deposit
  • 1
    Mix 50-50
Financial

Related Stores

ubank
ubank

Comments

  • Baghern on 01/11/2013 - 21:33

    Its the same everywhere.

    The banks are are trying to get people to save money at their bank. At the same time rip off the term depositors.

    Also because interest rates are at record low, the banks don't want to get caught with their pants down with term deposits.

  • fchis on 01/11/2013 - 23:32
    +3

    speaking of rip off, ATO is the king for that matter. Tax on savings to compensate negative gearing!!!

  • The Quote Train on 02/11/2013 - 12:00

    Buy bank shares

    • donga100 on 02/11/2013 - 15:41

      That has been pretty good advice the last few years with the dividends paid on bank shares. However, term deposit/savings = guaranteed 4-5% ROI, bank shares = possible loss of money if share price declines. Even though shares are probably going to give a better return it depends on how much you are willing to risk your money.

  • rickb on 04/11/2013 - 08:38

    Some people may be looking for a vehicle to park a large some of money, with a semi-decent interest rate, without the need of making monthly $200 deposits.

  • yk300 on 07/11/2013 - 17:47

    yes, you are better off with a savings account than a term deposit. Of course, that does depend on your situation but for the rate being offered, it is not worth locking the money down. The difference is actually quite big since interest is paid monthly on a savings account whereas for term deposit, it is usually yearly.

    My observation is that interest rate on savings account tends to fluctuate a lot more than term deposit; the game is all rigged and when the Government wants you to spend, they lower the interest rate to give you an incentive to do so. I am not an economist or a finance person.

    in your case, neither a savings account nor a term deposit offer a decent return on your capital. Perhaps diversify and consider investing.

  • cashless on 18/11/2013 - 12:10

    Noticed that Ubank has dropped interest rate on their O/L savings account by 0.05%.
    New rate (incl bonus if you save more than $200 p/month) is 4.26%.
    There are better deals out there, but not by much. Rabobank offering 4.40%

Login or Join to leave a comment
Login Join