Term Deposit 8.50% for 3 months at Ubank
Looks like there is a minimum deposit of $10,000
but if you have 10k lying around… it's a good deal
Term Deposit 8.50% for 3 months (from UBank, backed by NAB)
150
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UBank is a division of National Australia Bank Limited
At least they are backed by a major bank, although NAB's share price has dropped 40+% over the last 52 weeks…
i should have put my super into something like this instead of my normal superannuation people!
they didnt even have online banking.
I dont want to spend money to call them (13 xx xx)every time when transferring the money in/out.
Its a term deposit account… the most you'll need to call them is every 3 months. Its not a high interest savings account.
hmm.. what's NAB up to now???
Nice find if you have cash- but reading between the lines - its a sign of the times where the banks are gonna have to raise capital here in Oz rather than borrow overseas.
With OS borrowings interest rates rising AND our dollar tanking the cost to them is going up big time.
Its also a sign that as the cost of raising capital increases Mortgage rates are unlikely to drop even with the RBA dropping rates (as the RBA does drop the rates then the dollar will drop and increase the cost of overseas capital)
Interesting offering from the NAB. Although I have to agree that the lack of internet banking is annoying. Who can be bothered waiting on hold to speak to someone to get an account actioned.
Nevertheless, I'll probably take them up on the offer in the next week or so since my current TD matures with Raboplus. 8% is the best rate I see going around.
I don't get this internet banking thing? what can you do in internet banking with a term deposit anyway? I see that the rate is "until 12 October" - if the RBA drop rates, these guys will have the highest rate in the market by a mile! hey.. 24 hour call centre too!
Looks like the reserve bank just dropped rates, by 1%
wow this term deposit is like 2.5% above the RBA cash rate, wonder how long before they lower itI think we are certainly in an "interesting time". The major banks have announced dropping the home loan rate pretty much soon after and I am surprised to see that those online saving banks have not follow suit yet. It does make me worry sometimes whom have they lend my money to…
Yep interesting times. The banks are struggling to raise capital, and they say the reason they haven't passed on the full drop is because money costs them more to raise. My guess is that they may keep some of the term deposits higher because they need to encourage savings and its cheaper than borrowing overseas.
Also remember that money borrowed overseas will cost more than before as the Australian dollar tanks. If they borrowed a $US1000 at 95c rate it would have cost them $US1052, to pay it back when the rate is 70c its gonna cost them $US1428. Now the point is how many of their funds were borrowed when.
When the dollar was rising they would have been laughing all the way to - sorry - the bank!!, now they would be under pressure.
But it's more complicated than that. One major reason our dollar is dropping is that money from overseas is needed back overseas the OS lenders are under big pressure because of the liquidity crisis. If I need money to survive, no matter how much the interest rate is, I will take it out of the bank. Likewise the OS lenders are the same, so money flows back and our dollar tanks because that money is required in OS currency.
So while they would like to borrow OS and if the dollar rises again it would give them high profits, the problem is no one will lend money to Oz banks or even other banks. The system is frozen. So the banks have nowhere else to turn but to the Oz saver.
Cash is king, until the RBA and other federal banks start printing money to solve the problem.
Great explanation. Thanks!
I wouldn't trust any banks at the moment…