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[EXPIRED] 6.81% p.a. UBank 12 Month Term Deposit (Also Available for Self Managed Super)

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[EXPIRED] 6.81% p.a. UBank 12 Month Term Deposit (Also Available for Self Managed Super)
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Store RepLUBank on 03/12/2009 - 10:59 secure2.ubank.com.au (557 clicks)
Last edited 05/01/2010 - 14:40 by 1 other user

Thanks for all your comments and feedback on UBank - USaver and Term Deposits. We've taken this on-board and have responded by increasing our 12 Month Term Deposit to 6.81% p.a.

A UBank Term Deposit gives you the security of a fixed rate. You can choose from a 1, 3, 6, 9 or 12 month term and if you rollover your deposit amount (or more) at the end of your term, we'll reward you with a 0.10% p.a. Loyalty Bonus. You can also set up a UBank Term Deposit for your Self Managed Super Fund.

We've designed our account opening process to be as easy as possible, so you can do it 'all online' (in most cases, this include your identification check) - it takes around 5min to complete and you don't have to visit a branch.

As always, we value your comments, feedback and suggestions - we'll either reply directly here or follow us on Twitter - http://twitter.com/ubank

Thanks for your continued support.

Monty H
UBank

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closed Comments

  • mily on 03/12/2009 - 11:03

    beat Westpac by 0.01%, will consider it.

  • CyberMurning on 03/12/2009 - 11:04

    how about the online saving…. any plan to increase it ? :)

  • POWERevolution on 03/12/2009 - 11:05

    WOW! 0.01% more than other 2 banks … how crap!
    Any news on USaver?

    • SomeGuyOnOzB on 03/12/2009 - 11:13

      on the plus side, if you are with UBank, you don't have to go to another bank to get that term deposit rate …

      However, I would like to see an increase in the USaver rate … :)

      Any competition from Rabo or ING? :)

      • [Deactivated] on 03/12/2009 - 11:26

        That is a big +1 for me as I have recently opened a UBank account.

        • SomeGuyOnOzB on 03/12/2009 - 11:57

          Um, if you want to do a +1, at the top of the page, under the title where it says the current votes, click on the + sign. :)

      • Store RepUBank @ ubank on 03/12/2009 - 13:05

        That's right foundit, you can literally open a new Term Deposit account from funds in your USaver in less than 2 minutes, entirely online.

        • POWERevolution on 03/12/2009 - 13:28

          Seem like you ignored question about Usaver rate that every1 asked ;)

          • Store RepUBank @ ubank on 03/12/2009 - 13:51

            @POWERevolution: Hi POWERevolution, we responded to erwinsie above:

            "Hi erwinsie, We are reviewing our rates for USaver at the moment. Two weeks ago we announced the USaver Rate Assurance - This page details how we review interest rates - https://www.ubank.com.au/ub/web/usaver/online-savings-rate-a… Thanks, Monty H"

            In short, today's variable USaver rate remains unchanged at 5.46%p.a. (or 5.56%p.a. if you have set up a monthly Automatic Savings Plan for $100 (or more) to receive a Savings Bonus of 0.10%p.a. for balances up to $150,000)

            Thanks,
            Monty H

        • yargnairod on 03/12/2009 - 16:53

          Definite +1 from me. Sure it's negligibly higher than Westpac/NAB but if you have an account with ubank and not westpac then it's many many times more convenient to use this.

    • tdw on 03/12/2009 - 14:30

      that 0.01% is nothing to sneeze at :p

      • ggschenkel on 07/12/2009 - 06:51

        Well, it's better than a poke in the eye with a stick isn't it?
        In the end we aim to be price competitive but with outstanding service. This includes opening an account 24/7 from your home rather than lining up at a branch to fill in paperwork.
        Speak soon,

        Gerd

  • ozblogger on 03/12/2009 - 11:12
    -2

    Why do a term-deposit for 12 months, when the chance of rate going up in the next 3 months is very high ??

    • SomeGuyOnOzB on 03/12/2009 - 11:24

      The rate offered is not tied to the reserve bank rate.

      Everything going well, yes, we will see higher rates :) :) :) That would be very nice :) :) :)

      If the banks stop competing for our money though, the 12 month rate could pull back.

      So it depends on how people feel and what they personally believe will happen.

    • marty260 on 03/12/2009 - 11:24

      Because the rate is over 1% higher and you get that from today not from Feb or later (the RBA doesnt have a Jan meeting so next RBA rate rise wont be till Feb at earliest). Just remember that around Chrissy last year Westpac had a 3 year fixed rate on home loans going at 4.99%. Many people said at the time why lock in when rates are coming down. I am sure virtually everyone with a mortgage would wish they had locked that 4.99% in 11 months ago. This just shows that no matter how many people say one thing, it can still be completely wrong. Locking in for 12 months here on a savings account is great for people that need their interest to live on or want surety. For those willing to take a punt you may get higher in the months to come but you may get lower.

    • [Deactivated] on 03/12/2009 - 11:24

      Because it may still be higher than whatever interest rate then. It is currently at 5.41%, if they increase it in line with RBA it will be 5.66%. You are banking that interest rates will not reach 6.81% very soon, and you get a headstart with the 6.81% interest.

      • [Deactivated] on 03/12/2009 - 14:13
        -1

        some simple maths (Well for my Excel spreadsheet it was)

        RBA wont increase until Feb, then if they increase at .25% each month after that so it gets to 8.16% at the end and you take compounded interest per month on the at call rate, then the amount earned at the end is almost the same.

        So if they miss one or two of these rate rises you are ahead
        If they go higher than that you are behind (this is "unprecedented" - but hey so was the last rate rise)
        Plus you need to take into account the "cost" of being locked in

        So your comfort zonne will come into play

        • noyesmaybeok on 03/12/2009 - 18:03

          How do you figure that?

          Current cash rate is 3.75%. Ubank are offering 3% more than the current rate. If you wait until it goes up to 5% or 6%, which wouldn't be too far away, then you (in theory) get 8-9% instead of 6.8%.

          Be best to put money in a term deposit which is slightly less, but a shorter term (3 months). Then keep 'skipping' to new deposits with better rates in time.

          Though, why people would settle for just bank interest which hardly makes you any money after inflation instead of putting it in shares or something with a higher ROI is another question.

          • HanG on 03/12/2009 - 18:39

            @noyesmaybeok: thats now how interest rates work bud
            Their longer term rates depend on what people/themarket expect will happen to rates in the future, so the 6.81% actually takes into account future interest rate rises. You actually end up getting a better rate by locking in, as this is essentially transferring risk from the bank to yourself.

            • noyesmaybeok on 03/12/2009 - 20:09
              -1

              @HanG: Not when you know there will be a bunch of rises, worse losing .25% now to go with a shorter term and end up with much more later. Go by the bank - if they want you now, then you're better off waiting, and vice versa. Though again, 7% is small fry… much better options even with fairly low risk.

              • [Deactivated] on 03/12/2009 - 21:31

                @noyesmaybeok: Simple if rates go up .25 for 10 months (remember RB isn't meeting again until Feb) then its 2.5% so 2.5% on Ubanks 5.46% = 7.96% and I was allowing for them to increase their 5.46 by another .25% soon, so = 8.21% (I miscalculated it previously to 8.16%) and given that you get more in the beginning of the term but less later it averages out to around the same.

                However if you take the Newcastle permanent rate at 7% now or suncorp at 7.05% you are better off with the TD, unless rates really go thru the roof

    • noyesmaybeok on 03/12/2009 - 18:00

      Why do you think banks are suddenly advertising term deposits all of a sudden? They know it's going to be better for them to lock people in now so they're doing so

  • CyberMurning on 03/12/2009 - 12:06

    who voted - ??

  • mamboism on 03/12/2009 - 12:17

    good to see them follow the rates so quickly… I already have the USaver account, but I think I might wait for another rate increase to buy into the term deposit.

    • ggschenkel on 07/12/2009 - 06:50

      May be a good strategy. Just be aware that term deposit rates aren't directly linked to the RBA cash rate. They depend on the interbank rate (BBSW) plus the value of deposits to banks. The latter has been in wide swings due to the GFC (which also explains why some at call accounts pay above the cash rate at the moment). So it's pretty hard to predict where term deposit interest rates will go.
      Speak soon,
      Gerd

  • FloatingPoint on 03/12/2009 - 12:23
    +3

    I don't feel good with a 12 months term deposit. would like to see a rate increase with USaver.

    • ggschenkel on 07/12/2009 - 19:09

      USaver will be 5.51% for all and 5.61% with Automatic Savings Plan (up to $150,000 balance, see details online) from 9 December.
      Speak soon,
      Gerd

  • [Deactivated] on 03/12/2009 - 13:42
    +2

    Nice to see the matching of Westpac - but given the DIY superfund director limits means it's not available for my fund, and the Suncorp +.25%bonus, that Juicedpixels found - listed in the westpac deal - then Suncorp is the way to go for higher returns - ie 7.05%

    http://www.armadaleshoppingcity.com.au/images/newsandoffers/…

    Also Newcastle permanent is offering 7.0%

    http://www.ozbargain.com.au/node/19666

    • muzzamo on 03/12/2009 - 13:47

      You beat me to posting this. I'm wondering if suncorp will go 0.25 higher than ubank, ie 7.06%?

      I just went and got a suncorp TD today, 7.05% no worries.

      • samfisher5986 on 03/12/2009 - 19:27

        You got a Suncorp Term Deposit at 7.05%??? How?

        • team teri on 03/12/2009 - 20:11

          Just mention their offer to beat the big 4 by 0.25%. Westpac and NAB offer 6.8. +0.25, there you are…

          • [Deactivated] on 03/12/2009 - 21:24

            @team teri: This is only valid until December 12 whereas Newcastle Permanent rate is valid past that at this stage

  • applebyte on 03/12/2009 - 14:23
    +3

    Would be awesome if usaver rates would be updated :)

  • Icy on 03/12/2009 - 18:27
    -1

    bring on the USaver at 6.5% (+0.1%)
    kthxbye

    • ggschenkel on 07/12/2009 - 06:48

      LOL - it's just a matter of time with more RBA rate rises expected, isn't it ;-)
      Gerd

  • fergus on 04/12/2009 - 02:09

    See also:
    NAB 12 month term deposit 6.8%: http://www.ozbargain.com.au/node/19610
    Westpac 12 month term deposit 6.8%: http://www.ozbargain.com.au/node/19533

  • atreius on 04/12/2009 - 04:18

    A question for the ubank rep:
    Is that .1% 'loyalty bonus' in addition to the automatic savings plan .1%? Also does the loyalty bonus apply to all lengths of term deposits?

    • Store RepUBank @ ubank on 04/12/2009 - 10:05

      Hello atreius,

      The Loyalty Bonus and ASP Savings Bonus apply cannot be combined as they apply to different products.

      The Loyalty Bonus (currently 0.10%p.a.) applies only to UBank Term Deposits, and is applicable to all terms (1, 3, 6, 9 and 12mo - as well as the 24mo Self Managed Super). If you rollover your deposit amount (or more) at the end of your term, we'll reward you with the Loyalty Bonus.

      The ASP Savings Bonus applies only to UBank USaver (currently 0.10%p.a.). To receive the ASP Savings Bonus, set up a monthly Automatic Savings Plan for $100 (or more) and receive a Savings Bonus for balances up to $150,000.

      Thanks for your interest

      Monty H

  • [Deactivated] on 04/12/2009 - 13:01

    Anyone know what I lose if I break my stgeorge term deposit in favour of this?

    • Icy on 04/12/2009 - 19:30

      stg will unleash their dragon on you, somewhat related -> http://www.homestarrunner.com/sbemail58.html

    • ggschenkel on 05/12/2009 - 08:30

      Hello - term deposit break cost can be quite different from bank to bank. They also depend on the movement of the markets from when you took out the product to the day you want to break. The only way to get a good idea is to ask your bank.
      Speak soon
      Gerd

  • Store RepUBank @ ubank on 07/12/2009 - 18:43
    +1

    Hello - A few of you have asked if the USaver will be reviewed/increased.

    We're increasing the USaver rate to 5.51%p.a. effective Wed 9 December

    Also, don't forget the USaver ASP Savings Bonus of 0.10%p.a. which could take you to a whopping 5.61%p.a.

    Compare our rates at http://ubank.com.au/compare or visit us at http://ubank.com.au

    Thanks,
    Monty H

    • applebyte on 07/12/2009 - 19:47
      +1

      Thanks guys, despite being a small increase, at least it's something and shows you guys are dedicated at giving the best rates and not just one hit wonders

  • RottenHopeless on 09/12/2009 - 18:48

    Don't forget that when you are comparing the 6.81% with other institutions, check that the others also offer monthly or quarterly payments of interest, not just at term. You may not think it makes much difference, but 6.81% with interest paid monthly is good enough for me.

    Only concern is that I opened a term account last weekend (transferring from USaver - not the total amount in USaver account) and I got an email from Gerd thanking me for being with UBank and closing my USaver account. Checked and they are all still active???

    • ggschenkel on 10/12/2009 - 21:57

      Ooops, thanks for pointing this out. I'll have the team check into it.
      Speak soon,
      Gerd

  • modsec802 on 23/12/2009 - 17:45

    UBank dropped 12 month term deposits to 6.31% today :(

  • mcrompton on 24/12/2009 - 08:10

    this should be marked as expired - rate is now 6.31%

  • ofey on 05/01/2010 - 11:02

    Gerd man, this is so NOT cool. You've moved your Term Deposit rate down to 6.31%?? i wanted to put my X'mas money in and the rate has fallen back. C'mon Gerd, if you listen to customers, put it back up.

    • [Deactivated] on 08/01/2010 - 19:31

      Well AMP are still offering 6.86% Interest paid annually and 6.76% interest paid quarterly for 12 month deposits

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