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uBank increases ASP bonus rate to 0.2% BUT raises requirement

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uBank increases ASP bonus rate to 0.2% BUT raises requirement
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twig on 23/04/2010 - 13:27 ubank.com.au (406 clicks)

I got an email today notifying me that uBank is increasing their bonus interest rate for using ASP to 0.2%

However, you need to create a uBank Saver account and increase the amount to $200 a month.

Not bad for those looking for a higher interest rate, but not sure if I'd want to go through with the hassle of switching money between 3 accounts.

If done in May, the new rate should kick in by June.

We're making changes to the USaver Automatic Savings Plan (ASP) Savings Bonus. The great news is, you receive a double Savings Bonus of 0.20%p.a. What's changing is how you qualify for it.

Previously, to be eligible for the 0.10%p.a Savings Bonus (on Single or Joint USaver accounts), you had to have an ASP depositing $100 or more per month AND a total account balance less than $150,000 per account.

What's the new Savings Bonus criteria?
To be eligible for the Savings Bonus you'll need to have a single or joint USaver account with an ASP depositing $200 or more per month AND a total account balance of less than $200,000 per customer (This balance includes a combination of your accounts, including joint accounts).

When does it change?
To be eligible for your Savings Bonus, you'll need to fulfil the new criteria in May and you'll begin to earn interest at the higher rate from the 1st of June. Just remember, to continue to qualify for the Savings Bonus you will need to fulfil the Savings Bonus criteria by the end of each month. Qualifying accounts will start earning the ASP Savings Bonus interest after the first month from which your account qualifies. For more information on the Savings Bonus please visit UBank Savings Bonus.

What to do now.
To change your ASP amount (if your ASP deposit balance is less than $200 per month), all you need to do is log in at ubank.com.au select 'Manage my accounts' and choose 'Automatic Savings Plan' from the 'Payments' menu. Then, choose 'view Details' select 'Cancel Plan' and set up a new ASP with your new amount and/or frequency. It's easy to do because your linked account is already set up.

For further information on the changes to the ASP or if you need help, please visit UBank ASP FAQs section.

If there's anything further please give us a call anytime on 13 30 80 and speak to a real person.

Speak soon,

Gerd Schenkel

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  • Cluster on 23/04/2010 - 13:31

    Wow, that was a quick post. I only got the email 15 minutes ago :-)

    This offer gets a thumbs up from me. 0.2% bonus means 6.05% at call, which is the highest rate of any account. Pity it only kicks in from 1 June. It's a long time to wait.

    • twig on 23/04/2010 - 13:36

      lol i just copy pasted it after i did a quick search

      0.2% isnt bad, but just means i have to create another account and transfer money into it
      does anyone have that uBank savers account?
      if it has an automatic withdrawing feature then i guess i can use it

      • Cluster on 23/04/2010 - 14:33

        It's exactly the same deal as before, but instead of 0.1% extra on up to $150k when auto depositing $100 per month you get 0.2% extra on $200k for $200 per month. Nothing else has changed.

        • Bandit74 on 23/04/2010 - 15:04
          -4

          The way I read it is that ubank have now limited the ASP to a total of $200,000 per total combined balance, instead of the previous $150,000 per account (which you could have multiple accounts up to $150,000)

          While doubling the minimum monthly deposit payment to $200 to receive the new ASP bonus

          • Cluster on 23/04/2010 - 15:15
            +1

            @Bandit74: Hmm, that does indeed appear to be the case. UBank customers with more than $200k will now be tempted to keep any cash above that level in a different bank.

            I wonder what percentage of UBank's customers have more than $200k in their account…

            • user27 on 23/04/2010 - 16:56

              @Cluster: Not me, so I felt compelled to vote for this after seeing that one -

        • Chris on 02/05/2010 - 11:36

          Before, if you had more than $200K you could split it up into multiple accounts and still get the bonus but it seems now that if your combined total is more than $200K you don't get any bonus at all. So if you have more than $200K things have changed for the worse. :(

          • twig on 02/05/2010 - 11:42

            @Chris: Wish I had a spare $200k lying around in the bank somewhere…

      • thangcuoi on 23/04/2010 - 15:28

        What to do now.
        To change your ASP amount (if your ASP deposit balance is less than $200 per month), all you need to do is log in at ubank.com.au select ‘Manage my accounts’ and choose ‘Automatic Savings Plan’ from the ‘Payments’ menu. Then, choose ‘view Details’ select ‘Cancel Plan’ and set up a new ASP with your new amount and/or frequency. It’s easy to do because your linked account is already set up.

        You do have to create a new Austomatic Saving Plans, then delete the old one.

  • CyberMurning on 23/04/2010 - 13:35

    thanks.. done i change mine from 100 / month to 300$ / month.

  • coolsteps on 23/04/2010 - 13:37

    CITIBANK ONLINE saver is 6.01% now. but can it be linked to a ubank account? if so then ill simply transfer it all to ubank in june

  • [Deactivated] on 23/04/2010 - 14:08

    Not sure - guess we'll have to wait and see. ubank haven't increased their rates with the latest RBA rate increase, so with another one, will they take the rates up next time, which by June is most likely. Guess increasing your monthly amount in May to $200 is insurance.

    Not so good for those who have been lucky enough to have more than the $150K and could split into multiple accounts. Its now limited to $200K and this also includes money in joint accounts.

    Guess I'll wait to see how these guys do…

  • twig on 23/04/2010 - 14:11

    I'm a bit confused to what they mean by "a single or joint USaver account"

    • thangcuoi on 23/04/2010 - 15:29
      +1

      in your own name or joint name.

  • Integral888 on 23/04/2010 - 14:30
    +4

    For all his claims of "Speak soon" (he seems to sign off everything that way) Gerd has been a little quiet around here lately.

  • lswon9 on 23/04/2010 - 14:31

    Single is only for 1 account holder whereas joint is for 2 account holders.

    • twig on 23/04/2010 - 15:06

      Thanks for that!

  • muzzamo on 23/04/2010 - 14:46

    Simple solution to this if you already have an ING Direct account. ING Direct also have an automatic savings plan. So setup an ASP with ubank sucking money from ING, then setup a second ASP 5 days or so later (Just in case) with ING sucking the money back from ubank :-)

    I Deposit a lot into my ubank each month, but not automatically. Doing above makes sure I get the bonus :-)

  • Bandit74 on 23/04/2010 - 14:51
    -3

    So you now have to deposit an extra $1200 a year to get back a maximum of $200 (if you have $200k)

    Why bother?

    • CyberMurning on 23/04/2010 - 14:54
      +4

      well.. because that extra $1200 will give you less than $200 in other bank.. (compounding interest) thats why

      • macfanboy on 23/04/2010 - 14:56
        +3

        Well said, some of us need every cent that we can get..

    • thangcuoi on 23/04/2010 - 15:32
      +2

      because it's free money.

    • Cluster on 23/04/2010 - 16:03
      +2

      The other way to look at it is this:

      If I usually deposit $1000 in my UBank account every month and receive 5.85%, why wouldn't I change that to depositing $900 per month, and having the other $100 auto deposited via the ASP? I have just increased my interest rate by 0.1% without having to add any extra money above what I would do every month anyway.

      By changing the way money is deposited I can get 0.1% extra on the whole $150,000 (and soon to be 0.2% on $200k). It makes a lot of sense, unless you have more than $150k or soon to be $200k. I'd wager people in the latter ground are in the small minority on ozbargain.com.au.

  • Trance N Dance on 23/04/2010 - 14:57

    is there any way an under 18 can get one of these bank accounts?
    cause im earning less than 4% with my anz one

    • macfanboy on 23/04/2010 - 15:03

      no

    • JDogman on 23/04/2010 - 15:06

      yeah.. turn 18!

      That's probably your only solution.. and im pretty sure an ANZ Online Saver pays 4.5%pa

      • Trance N Dance on 23/04/2010 - 15:14

        yeah have to wait 16 months from today :(
        yeah the ANZ progress saver pays 4.51%, they changed it since the last time i got my invoice

        • CyberMurning on 23/04/2010 - 15:41
          +1

          good on you.. when i was 17yo, i didnt get high interest for my money :(
          also i didnt know how todo trance and n dance .. lol

    • BargainMe on 23/04/2010 - 19:25

      Go with ING Direct- I got a savings maximiser account when I was 16.

  • shu on 23/04/2010 - 15:46

    Is anyone going to start raising their savings rates after the last RBA rate rise? :(

    • Cluster on 23/04/2010 - 15:58

      Savings account rates are already up to 1.75% above the RBA's rate.

      It's difficult to see banks raising savings rates at 0.25% every time the RBA does, unless the wholesale funding costs rise as well. That of course doesn't stop the banks raising loan costs by 0.25% however :-)

    • patientvalue on 23/04/2010 - 16:05

      not unless overseas wholesale funding costs increase again which wont happen unless (when) there is another global financial panic. And Aussies have decided to increase their saving (so supply of $$ to the banks has gone up).

      —

      Trance N Dance good on you for saving so hard while so young. I wish i had your wisdom at your age.

      —

      This change by Ubank appears to favour smaller savers (for those over 200K it is a pain). I suspect this compels us to move the surplus money to another bank. But i will still need to do the calculations on this to confirm it is worth the effort. Oh well, i guess it is back to being vigilant :) The other issue is hitting the 200K faster and needing to move funds to remain below the threshold but maximise the bonus rate.

      This seems to be their answer to introductory/bonus offers from their competitors. I suspect they have done their calculations and worked out it will lead to a faster rate of increase in the amounts saved. Perhaps not enough people were using the ASP?

  • SupaStarStatus on 23/04/2010 - 16:05
    -1

    I got this email to. Good news since i already ASP more than that amount.

  • JDogman on 23/04/2010 - 16:13
    +4

    ok wait.. people with $200k sitting around! Why arent you investing it? 6.05% return is nothing (comparitively) especially in a "recovering" market! And especially when you are going to be taxed 46.5c out of the dollar… (I know I am making the assumption that people with 200k sitting in their accounts make money in the highest threshold)

    Not only that, if you have a home loan.. Offset account maybe? (Saves interest instead of you having to earn interest and be taxed)
    …and if you dont then good for you, I wish I had your type of money :P

    • Bandit74 on 23/04/2010 - 16:31
      -2

      You only get taxed 46.5c if you don't supply a tax file number

      • JDogman on 23/04/2010 - 16:38
        +1

        You have to declare all income at the end of the financial year and if you are a person who earns money at the highest threshold.. then the interest that you earn has tax consideration as well!

        So say I earn $200K a year.
        So therefore I am in the highest bracket, then say I earn $10,000 in interst.

        Therefore my total taxable income for that financial year is $210K so my $10K didnt go the whole distance, its only made for me $5350.00..

        May be a rephrase of my comment might be better: you will be taxed at your marginal rate with any interest earned so that $1000 you earned in interst isnt going to be $1000 when tax man comes along! (that said a lot of people may never actually notice that theyre paying tax on this because the tax payable is offseted by the (hopefully) huge tax refund that you get)

        I could explain it more indepth but it may bore you out..

    • Cluster on 23/04/2010 - 16:33

      Pensioners would want the security of guaranteed income (interest) with 100% assurance they will get all their money. Can't say the same for managed funds / shares / etc over the past few years.

      I personally am saving for a house deposit. As I may want to buy a house at any time, I can't really justify spending money on shares or funds that in the short term may fall. Being forced to sell in a falling market is not good.

      Although Australian shares have recovered some of their losses over the past year, the ASX 200 still needs to hit over 7500 this year for investors just to break even with where they were in July 2007 (taking into account inflation, etc).

    • bitcoinorbust on 23/04/2010 - 21:48
      -1

      i wouldnt be visting ozbargain if i had 200k cash laying around. anyone that does is ultimate tightass.

      btw this deal sux ubank gone quiet after they sucked everyone into signing up

      • patientvalue on 24/04/2010 - 09:52
        +1

        well nice label thanks smuck. I think the easiest way to get to 200K in the bank is to spend less - i subscribe to the practice of 'a dollar saved is 100 cents in my pocket while a dollar earned is somewhat less - depending on taxes'. Which is why i visit ozbargain so often!

  • CyberMurning on 23/04/2010 - 16:24

    what jdogman said is very true…
    go invest in something diffrent than cash.
    buy more properties… managed funds, etc

    • patientvalue on 23/04/2010 - 16:32
      +2

      Well you both make the assumption that it is a good time to invest. I personally believe most asset classes are terribly overpriced. I was tempted to suggest the same thing to Trance N Dance but felt like a hypocrite. However given he is only 18 he can manage the ups and down of asset prices better than someone more than twice his age. Yes i am aware I may be falling victim to the 'timing the market' vs 'time in the market'.

      • JDogman on 23/04/2010 - 16:41

        mmm yeah being 19 is good! Thats the only reason why I am happily invest in stocks etc! I can wait longer and if I take any capital losses I have a lot longer to recover them!

        But I too am saving for a house so pretty much I save and trade along side each other! And UBank is where all my savings go! Im 3/4 of the way to a deposit…now I have to find someone who would be willing to lend to a Uni student working part time (no one!)

        • patientvalue on 23/04/2010 - 17:02

          Good on you JDogman! Like Trance N Dance you are developing some great savings/investing habits while still young. You will surely benefit in the long run.

          Personally if i was you I would just invest in stocks and rent. You dont need to have a mortgage as a form of forced savings - you already have that good habit. Stocks will almost certainly outperform housing (have done so historically and given PE on housing is around 40 to 50 will continue to do so). But I understand the psychological desire to want to own property. All the best for a financially secure future, you are starting well.

          • JDogman on 23/04/2010 - 17:35

            @patientvalue: thanks patientvalue!

            Thanks for the advice! I've done one better though.. Im living at home :P and I'm investing in stocks..

            that said.. the gf does use up a bit of savings, but happy to spend that money..

          • Trance N Dance on 23/04/2010 - 23:17
            +1

            @patientvalue: lol patientvalue, i'm only 16 and if the law allowed I'd be in the stocks already. yes by being young you have more time to assorb the losses but if you've got shares that are dropping in a bearish market, sell and in the few days after or couple of weeks after the drop it starts raising but still is below the initial price you bought in the first place, buy in again, that way the total cost for x number of shares is lower and the time to get back into the black is shortened.

            if you have the cash to invest broadly id say you should, diversifying was a big lesson taught to me in commerce/economics class as well as my dad, and it was proven right, shares tanked in the past couple of years and housing has doing pretty well over the long run (if you were in the right areas especially in certain areas of australia let alone sydney).

            • JDogman on 23/04/2010 - 23:30

              @Trance N Dance: mate you know tonnes for 16! I only really became financially savvy when I turned 18 and I could start doing things!

              That said you can buy stocks, just not sell til your 18 (i think thats the rule)
              I know you can definately go into floats as an adolescent!

              But it would be sick to buy now and wait 14 mnths til you are 18 and sit on a minor fortune!

              • JDogman on 23/04/2010 - 23:35

                @JDogman: btw best time to get into shares is when you are younger as well! because the franking credits you get.. You'll get it all back because no 16yo (usually) makes more than $15000 in a financial year so you are effectively tax free (direct source of income)! And from investments you are allowed $3000 (shares,interest etc..)

                PS the tax rate for minors on investments are CRAZY!
                $0-416 = tax free
                $416 - 3000 = 66% tax
                more than $3000 = 45% tax

                These are marginal rates as well so theyre accumulative!!
                That said you got leighway up to $3k cuz of Low Income Tax Offset!
                So pretty much as a minor I made $900 a year in dividends then come tax time I got another $400ish back from franking credits!

                • Trance N Dance on 24/04/2010 - 09:33

                  @JDogman: WTF!!! 66% tax!!! geeezus, us minors are sure getting ripped off.

                  mmmm interesting, never knew i could buy shares, thought there was an age limit of 18 because they considered share trading to be a company or someting and to be a ceo or the head you have to be 18 or over. I know I can open a joint account with my dad but I'm not sure how the taxing on that occurs.

                  ummm i might start a forum topic on this soon after my exams for all those minors out there.

                  • abchakraborty on 24/04/2010 - 09:48

                    @Trance N Dance: "minors are sure getting ripped off"

                    lol…you're not getting it. The purpose of those harsh 66% tax rate for minors is to prevent your parents looking to dodge paying their fair share of tax i.e 30-45% tax by investing in your name instead of theirs.

                    And just to be clear, this tax rate applies ONLY to investment income. if you get a part time job for some pocket money or join a trade making normal wages for hours worked, all of that gets taxed just like any other adult, not 66% tax.

                    In any case, i don't think the government would be too keen to have underage teens risk what little savings they had on stocks. Just think of the outcry they allowed it and a bunch of teens lose their shirts punting on stocks and go crying to the media that they were vunerable and were predated upon…

                    These protections are there for a reason.

                    • patientvalue on 24/04/2010 - 10:09
                      +2

                      @abchakraborty: Couple of things Trance N Dance and JDogman then i will be done as yeah this really belongs in a forum.

                      1) I disagree with abchakraborty re loosing your shirt. Young folks need to 'fall of their bike and scrap their knee to be more careful in the future'. Experience is the best teacher. This is the perfect time to 'lose your shirt', while you are young. You can learn heaps from your mistakes and hopefully avoid repeating them - mainly to avoid trading and start investing :) For example: Do a spreadsheet with estimated annual income for the next 40 years graph the cummulative total; repeat same with no income (and savings) for the first two years. You will see that losing a year or two of your income at this stage is insignificant to the end outcome.

                      2) there is all the difference in the world between trading and investing. The former is speculating. That is fine and may work for you. I prefer investing. Read something on Warren Buffett and Peter Lynch et al. These guys make their fortune by investing in companies not stock/shares. Now those things on the surface are the same but they belie a different outlook and attitude towards companies. If you are curious you can investigate the psychological and financial differences.

                      good luck

                    • Trance N Dance on 24/04/2010 - 10:39

                      @abchakraborty: Yeah I know that it's there to prevent adults abusing the system, but it should be 50% not bloody 66%, us minors should never be taxed more than the highest that an adult should.

                      I disagree with the "losing their shirts" ideal you have. When your a minor it's the perfect time to learn a lesson about money. Like patientvalue said below me, experience is the best teacher. As a minor we're still under our parents' care and responsibility, now if they choose to allow us to invest what money we have it's their decision consulted with the minor, outlaying all the risks involved. If the minor then makes a killing good for 'em, they've learnt how to invest. If they lose their life savings or most of it (which is almost impossible if you don't play with CFDs and the company doesn't go bankrupt and cease to exist) then they are still going to live with their parents and still get fed and still go to school. Just that they've learnt a valuble lession on where and how not to invest, and the lesson will stick cause they won't have the money to buy that expensive shirt, or that piece of electronics they want.

  • insertusernamehere on 23/04/2010 - 16:25

    this sucks. i have 3 accounts to keep track of my savings for individual goals, each has the 100 depost currently but making it 200 in each cant be done. i dont wanna combine the accounts…makes tracking it difficult. meh, i thought u were cool ubank.

  • Nezuji on 23/04/2010 - 17:38

    Suits me! I already have an ASP that puts in all my pay minus some pocket money every payday, and I have way less than $200,000 in UBank, so to me, this is just an extra 0.10% interest for doing nothing :)

  • rezok on 23/04/2010 - 19:59

    does a ubank to nab transfer happen immediately? Or is it like overnight? Great deal btw!

    • macfanboy on 23/04/2010 - 23:05

      overnight so they get to use your money free for getting interest.

    • Nezuji on 25/04/2010 - 13:06

      I don't know about manual transfers, but with ASP, you start earning interest at UBank immediately, the money comes out of your account overnight, and then you have to wait 4 business days before it becomes available to withdraw from UBank.

  • tim_geo on 23/04/2010 - 23:39

    Hmm.. since for qualifying it's based on combined balances on all accounts, does that mean the 0.2% will apply to all accounts too?

    • macfanboy on 24/04/2010 - 07:37

      Of course it would but what's the point?
      You would gain exactly the same interest if you saved $200 per account.

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