Modern Australian Magazine

UBank Increases Term Deposit Rates: What That Means for Aussie Savers?

  • Written by News Company

Source: UBank


UBank recently decided to help Australians with their savings by increasing their term deposit rates. These rates are now more competitive and may help you with your savings goals. If you currently have a UBank term deposit or are thinking about opening one, you should understand what these rate changes mean for you.

 

What is a Term Deposit and Who is UBank?

Some people may not be familiar with term deposits or UBank. A term deposit is a fixed-term deposit, which means that the account holder deposits a sum of money in the bank for a fixed amount of time. These deposits typically have a term length up to 12-months, while UBank offers a range between one and twelve months. Closing an account before the end of the agreed term may result in penalties and the loss of any interest that you may have accumulated while the account was open.

When money is deposited, the bank uses the funds to provide loans to other borrowers. These borrowers are charged a higher interest rate, allowing the bank to pay you interest.

The structure of these deposits allows banks to give account holders a higher interest rate compared to a standard personal savings account. They also typically feature fixed interest rates that are applied over the length of the term. However, some banks continue to offer variable rates, which carries more risk, as the rates may decrease.

UBank is an online bank that was established in 2008 by the National Australia Bank (NAB). NAB launched UBank specifically for online banking, and their first product was the term deposit. Over the past decade, their range of products has expanded to include SMSF accounts, savings accounts, and home loans.

 

How Much Did the Rates Change?

UBank offers a wide range of term lengths, from one month to twelve months. Each of these terms has received an increase in interest rates, which means additional savings for you. However, the amount of extra savings that you can expect depends on your deposit balance and the term.

The increases vary depending on the term. For example, the previous standard rate for a one-month term deposit was 1.90%. The new rate is 2.10%. The last standard rate for a nine-month term was 2.66% and is now 2.75%.

 

Enjoy the Same Great Advantages

Along with the rate increase, the UBank term deposit continues to provide several significant advantages for customers. These benefits include no extra fees, security for deposits up to $250,000, a small minimal investment, and a loyalty bonus. One of the strengths of the UBank term deposit is that the bank does not charge any fees. There are no monthly accounting fees or charges to deal with.

The fixed interest rates are also beneficial, as they provide a secure solution for building your savings. These interest rates are set and do not increase or decrease during the length of your term.

You also do not need to start with a large deposit. While you can invest up to $2 million dollars, you only need $1,000 for your initial investment. UBank also covers all deposits up to $250,000 through backing by the NAB.

 

Roll Over Your Balance to Receive the Loyalty Bonus

The loyalty bonus that UBank offers customers still applies. This bonus is given to customers when their deposit matures after they choose to roll it over for another term. For example, if you want a 12-month term, you would have a 2.64% interest rate with the previous standard rates and 2.75% with the new rates. With the loyalty bonus, you will get a 2.85% interest rate when you reinvest your term deposit.

The bottom line is that any additional money that you can earn from a term deposit is good news. If you want to take advantage of these increased rates, consider opening a term deposit with UBank. Along with the increased rates, you can enjoy zero fees and a loyalty bonus when you roll over your deposit.

 

Australia Today

How to Get Your Child Into Modelling: 5 Top Tips for Breaking Into the Industry

Adam Jacobs

Modelling, or even just playing pretend modelling, can be a fun and interesting experience for young children. The activity can help boost their self-esteem, which is crucial for self-development and can help them achieve success in life as they continue to grow. A little one’s confidence is su...

Read more

It's despair, not depression, that's responsible for Indigenous suicide

Tim Carey, Professor, Director of the Centre for Remote Health, Flinders University

A history of dispossession and transgenerational trauma underlie the day-to-day struggles of Indigenous people.from shutterstock.comThis article was written with Rob McPhee, Deputy CEO of the Kimberley Aboriginal Medical Service and co-chair of the Commonwealth-funded Kimberley Aboriginal Suicide Pr...

Read more

Can the Big Bash League's backyard cricket bat flip truly be fair?

Stephen Woodcock, Senior Lecturer in Mathematics, University of Technology Sydney

Would you go 'flats' or 'hills'?Shutterstock/Brian A Jackson Ahead of the start of the 2018-19 Big Bash League season comes news of a radical change that will bring a smile to the faces of backyard cricketers across the country.In a move familiar to everyone who has ever improvised a set of stumps f...

Read more

Native cherries are a bit mysterious, and possibly inside-out

Gregg Müller, Lecturer in Natural History, La Trobe University

John Tann/Flickr, CC BY-SAPeople don’t like parasites. But there’s a local Aussie tree that’s only a little bit parasitic: the native cherry, or cherry ballart.It’s what we call hemiparasitic. It can photosynthesise, but gains extra nutrients by attaching its roots to host pl...

Read more

Holidays & Travel

Adhari Park: Why is it one of the must-visit sites in Bahrain?

Despite its small area that does not exceed the 1,000 square kilometers mark, the Kingdom of Bahrain is known for being rich of touristic sites and attractions. Bahrain comprises destinations...

Exciting Off Road Adventures In Western Australia

Western Australia has long been a top destination for off roading enthusiasts from all across the world. One look at some of the top off road destinations on offer in...

Things to Do and See in Ballina, Australia

The intricate coastline of New South Wales is renowned for its sumptuous, decadent beaches, hidden resorts and secret camping spots. A long and slow ride down the winding highway that...

Guide to Travel Necessities for 2018

Sure, it sounds like quite an adventure to hit an open road with nothing but a one-way ticket and an open mind, but the harsh reality is – you won’t...

Top Sightseeing Spots in New Zealand

New Zealand is one of the most fascinating locations for anyone to visit in the world. After all, it’s a place with a variety of unique landscapes, but it isn’t...

Must-Pack Items for a Travel Blogging Boss

As a travel blogger, you get to see and explore so many wonderful destinations and meet various interesting people, but before you embark on a new adventure you need to...

Luxury Camping Adventures Around the World

Perhaps in direct response to the dominance of technology in the modern world, many travelers are feeling a strong draw towards nature. While some are able to fully embrace their...

Dredging works underway Plantation Island

Tourists and workers travelling to popular tourist destination Plantation Island, Fiji, are set to benefit from safer access when marine channel dredging is completed at the end of June 2018...

Top 5 Tips for Traveling With Dogs

Travelling with your dog can be thrilling, but sometimes it can turn into a real nuisance. Unless you know how to properly restrain the pooch, whether it’ll be able to...

Fashion & Beauty

How to Get Your Child Into Modelling: 5 Top Tips for Breaking Into the Industry

Modelling, or even just playing pretend modelling, can be a fun and interesting experience for young children. The activity can help boost their self-esteem, which is crucial for self-development and...

How to Dress Your Baby Bump

A pregnancy is the most beautiful and the most trying time in your life, so you want to make sure that you are as comfortable as possible and feel as...

Summertime skin

Summertime skin: the water based and nutrient-rich after sun gel-cream providing more antioxidant support than your traditional aloe While summer might mean spending days on end lapping up the glorious sunshine...

Groom To Do List

Sorry Aussie Men, you no longer just pay for the alcohol, flowers and marriage license. Times have certainly changed. Wedding Expert shares what Australian Grooms are now expected to do before...

Simple Secrets To A More Confident Smile

We all know just how important first impressions are. After a handshake, what’s one of the first things people will notice about you? It’s your smile. A friendly smile is...

Improve Your Body Confidence and Feel Great

No matter how good you feel about yourself, sometimes you just can’t help but see a few little flaws that seem gigantic to you and make you feel self-conscious. Whether...

Popular articles from Modern Australian

Body Talk: Losing Weight and Gaining Good HealthWhy You Need To Get a Forex Trading EducationHow to Dress Your Baby BumpSurviving Moving House: The Ultimate ChecklistNatural Ways to Deal with Sore MusclesEasy Ways to Earn Extra Money on the SideProduct of the Year (POY) 2019 winnersClick Frenzy's Ironshopper winner More People Want a Sparkling Smile for the Festive SeasonUBank Increases Term Deposit Rates: What That Means for Aussie Savers?Bosses Must Address Their Mental Health for Personal and Business Success4 Things to Expect During Your Trichology ConsultationHappy Adoption: Frequently Asked Questions about Adopting6 Ways You Can Help Others that Will Advance Your CareerTop 6 Stylish Loft Conversions That Will Transform Your Attic