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

There's little reason for optimism about Closing the Gap, despite changes to education targets

Melitta Hogarth, Lecturer, University of Southern Queensland

Again this year, the Closing the Gap report delivered disappointment.www.shutterstock.comThis week saw the release of the annual Closing the Gap report. Much like the previous decade of reports, we learned progress was lacking, failure was apparent and in 2018, only two of the seven targets were on ...

how queer texts could fight homophobia in Australian schools

Annamarie Jagose, Dean of the Faculty of Arts and Social Sciences, University of Sydney

Books are a good starting place to make schools more inviting places for queer students.www.shutterstock.comRecently, the Australian Association for the Teaching of English (AATE) — the peak professional body for Australian English teachers — published a special issue of the journal Engl...

The glowing ghost mushroom looks like it comes from a fungal netherworld

Alison Pouliot, Australian National University

The ghost fungus emits an eerie green glow.Author providedSign up to Beating Around the Bush, a series that profiles native plants: part gardening column, part dispatches from country, entirely Australian.It’s worth tolerating the mosquitoes and the disconcerting rustle of unseen creatures tha...

Michelle Grattan on reopening Christmas Island and One Nation's shenanigans

Michelle Grattan, Professorial Fellow, University of Canberra

University of Canberra Vice-Chancellor Deep Saini and Michelle Grattan talk about the week in politics. They discuss including the government’s historic defeat in the House of Representatives on the medevac legislation, plans to reopen the Christmas Island detention facility, One Nation’...

The Catholic Church is headed for another sex abuse scandal as #NunsToo speak up

Kathleen McPhillips, Senior Lecturer, School of Humanities and Social Science, University of Newcastle

All eyes will turn to Rome between 21-24 February, when senior church clerics across the world meet to discuss how to handle the widening sexual abuse crisis in the Catholic Church. Until recently, this has been focused on the abuse of children. But now Pope Francis has admitted – for the firs...

Holidays & Travel

Important Considerations When Choosing Broome Accommodation

Broome is a fantastic place for visitors of all ages. Whether you want to lounge on the golden sands of Cable beach or take the kids to learn something new...

A tour guide to Melbourne

Welcome to the second most populous city in Australia with its beautiful sites and amazing scenery. Melbourne has been identified in so many spheres as one of the most livable...

Top 5 Places to Visit in Australia

The sheer, breathtaking expanse of the Australian continent is a thing of beauty. The vast landmass is actually packed with awe-inspiring landmarks to see and countless blood-pumping activities to partake...

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...

Fashion & Beauty

Five Trends That Will Transform Beauty

Remember the Groucho brows, the palm tree hairstyle and the giant hair that were huge trends back in the ‘80s? Well, those times are behind us, fortunately, and with each...

Fashion Trends to Know in 2019

No matter if you’re a die-hard fashionista or just a girl who loves to keep up with the latest fashion trends from time to time – you’re definitely at the...

Five Fabulous Items Every Single Makeup Bag Must Have According to The Experts At Lime Crime

Most women find it necessary to bring a purse with them. A purse makes it easy to keep items around that they need during the day. One of the most...

The Best Eyelash Enhancers in the Market Today

The human obsession with beauty goes way back in our history as can be seen in antique paintings and sculpture and it is one that continues to persist today and...

Budget Gifting Ideas That Teens Can Utilise

Teens don't have to be left out of gift giving occasions. In fact, many teens would love to be able to present family and friends with gifts on holidays, and...

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...

Popular articles from Modern Australian

Why you should hire equipment for your next party or eventLiving life without fearFive Trends That Will Transform Beauty Moving home is always complicated but even more challenging in SydneyWhy Chocolate Can Be Good For YouHow to Choose the Right Wedding SuitTop 5 Non-Surgical Cosmetic Procedures for Men in 20192019’s Unforgettable Valentine’s Day Ideas In SydneyFashion Trends to Know in 2019David Lennon:   Five reasons to get your car loan sorted before visiting a dealership5 Sleep-Friendly Bedroom Tips for Career WomenTop 5 Car Finance TipsAustralian Bathroom Design Trends for the Upcoming Season6 Signs it’s Time to Consider Laser Tattoo RemovalLocal Moving Checklist