this offer is the highest 3 months term deposit from a large (=safe) bank in Australia (as per ratecity.com)
with interest rates going down and down, term deposits are the way to lock in rates now - if you have cash that you don't need for a while.
UBank term deposit. 3 months 6.50%
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good point. however, from end of november the guarantee is only "free" for up to 1mill. also, in the event of a claim (ie the deposit institution going bankrupt), the procedures of making a claim are not set (yet), so would presumably come with some hassle for the depositor (eg. will you continue to earn interest or have access to your money whilst a claim is being processed ?).
ggs - yours is an even better point. Thank you, not everything is as it seems when a government makes promises.
isn't 6.5% a very average rate - I"m currently with ING and they're offering 6.5% on normal savings deposits…I don't understand how this is a bargain? ING's deposits are government guaranteed as well.
it's the highest rate on a 3 month term deposit at the moment (according to ratecity.com). as interest rates fall, so do savings account rates - but term deposit rates are guaranteed for their term. so, if you belive that rates will fall further, a term deposit might be a better choice compared to a savings account with a variable rate.
PS - just checked: ING savings account rate is now 5.5% p.a. - rates have dropped so much….
… and the 3 month Term Deposit rate of UBank has been posted less than 2 months ago — 8.50%!! How much has changed over the last 2 months.
yes, the RBA cash rate has gone down by 1.75% since september ! (official cash rate can be found here: http://www.rba.gov.au/statistics/cashrate_target.html)
Yep, and the inflation rate is 5% which eats up most of the interest earned.
This is what Arab bank says.
The interest at this moment is much higher than 6.5%, and you can choose to put it in a term deposit or take it out earlier if you like.
"The Government's announcement to guarantee all Australian bank deposits also applies to Arab Bank Australia deposits. So, take advantage of our Online Savings account and earn 7.20% on as little as $1."
it's now gone down to 6.31%. RBA meeting is on next week again. Still the highest TD according to Ratecity.com
why worry about the safety of an Australian financial institution? With the government guarantee - go find the highest interest rates regardless of their rating.