Just noticed that ubank is going to raise its savings rate again soon.
From 1 August 2022, we’ll be increasing our bonus interest rate to 2.25% p.a. for both our Save and USave accounts. Our base rate will remain at 0.10% p.a., meaning you’ll be able to earn interest up to 2.35% p.a. across all your eligible ubank accounts.
Referrer and referee each receive $10 after referee makes 5 settled card purchases within 30 days.
How many days do you count until August 1st?
Are they gonna increase their mortgage rates on Aug 1st too?
CBA will increase the saving rates with mortgage rates on July 15th.
Excellent. Which CBA account will be paying 2.35%?
Their 15 month term deposit rate will go to 2.5% next week.
GoalSaver will go to 1.25%.
They do increases on the 1st of the month. I joined end of June and the bonus rate was only 1.35%, it's now 1.85% and will be 2.35% next month. It makes sense to me and it's better than the 0.05% I've been on with Bankwest for years due to lazyness.
Yep, real loss after inflation will not be so bad. On the other hand with other asset classes such as property and shares falling at a faster rate not the worst place to be during the strom! In fact you could be into Zim $'s and see a monthly inflation rate of 192%!
Because 28 days later it won’t matter anymore
CLARIFICATION !
Ubank doesnt have the highest savings rate even at 2.35%.
In fact Rabo does @ 2.6% intro rate for first 4 months.
However at this stage uBank does have the highest ONGOING savings rate @ 2.35% requiring just a $200 to qualify each month.
And withdrawals are allowed!
They have been ahead of the game for quite a while
NB: Max $250,000
ING is the highest. Its 2.6% now.
Credit union SA 2.5% if increasing balance every month (even by 1c).
But not the same as ING where you can withdraw and then redeposit and increase balance by 1 c. Here you must not make any withdrawals. Same as RAMS.
Nice
Finally some love for long suffering savers. :)
At the expense of everything else ahahahaha, wonder if it’ll be back to around 4% at the end of the year at the rate it’s going
Probably some banks like ubank will offer 3.5 - 4% once the rba rate is over 2.5%.
Except real inflation is much higher now so real return is more negative than previously…. :(
Damn, I hadn't considered that. :(
Which is why long-term investing is your next step after accruing enough savings. You need high growth assets (percentage of your portfolio dependent on age and goals) to keep ahead of inflation and build some wealth on top, while keeping a percentage in cash for your own cashflow and contingencies and as a defensive allocation.
So how is this paid out? Everyonth at a 2.35% pa or only if I keep my money there for a number of years?
Base interest is calculated daily and paid monthly based on the total balance of your Save accounts. Each day, we’ll check your account balances and calculate the interest for each Save account. At the end of the month, we’ll add them up and pay it to your Save accounts. Bonus interest is also calculated daily and paid monthly, but only on balances up to $250K per customer.
Thank you, I'm a noob. Anyone know how long it will take to transfer large sums of money from this bank to say NAB?
Depends how far away the banks are from each other and how fast your horse is. Got a stage coach?
$20K/day unless you have access to a telephone machine to call them
https://www.ubank.com.au/help/current/everyday-banking/using…
You can link your NAB account so the limit then increases substantially. If I've not mistaken I think you can transfer $100k per day.
Follow what @DreamBargains has said. Assuming values are the same post merger, your normal limit is $20k but you can verify a linked account to raise the transfer limit to $100k out.
The limits overlap with each other, so be careful if you move $20k between your Ubank and external 'linked' accounts and then need to pay $500 to another account that isn't linked, you wont be able to do it as you've only got $19.5k limit remaining for the . If you do the $500 first you will still be able to move $20k as there will be $99,500 remaining for the linked transfers.
Important information
Daily online transfer limits: pay anyone up to $20,000. Transfer to linked account, verified for at least 10 days, up to $100,000.Customers with SMSF accounts: please be aware that future dated transfers are restricted to $20,000.
Future dated transfers between your personal accounts and your SMSF accounts have a $20,000 daily limit. Pay now transfers do not have a limit. Please see FAQs for full transfer details.
UBank to nab is instant for amounts under 10k and as others have said, linked account makes this higher but not sure if still instant
Every month.
Its calculated daily (whatever your balance in daily basis) but paid every 1st day of the next month
Clever marketing from ubank - sounds really good and a stand-out rate announcing it this month, but will only take effect next month likely when there's a further rate rise and other banks will have caught up.
I swear new rates use to take effect within a couple of days. Why are they like this now.
That's how banks have always been.
Some of them will raise their borrowing rates by a certain amount, but raise savings by slightly less (or not at all, if they feel like they can get away with it) to increase profit margins.
Some of them will pass through the rate in full to ostensibly appear to be the good guy, but will pass it through earlier for borrowers and delay it by a few days or weeks for savers so they can pocket the difference from the greater interest margin they have between the two dates.
ubank has clearly gone for the latter strategy. They passed the last two 0.5% rises in full, but delayed it by a month for savers.
The answer is the same as any other similar circumstance: because they can.
To be fair they also increase home loan rates the following month and not immediately.
This puts them as the highest right?
BOQ is still the highest but 50k and age limit.
50K per account with upto 9 accounts. All up 450K
Is that really the case? I know a couple can have 1 account each and a joint for up to 150k but this is news to me.
@denserham: No mention any where that the bonus rate is limited to 50K across all accounts. Its 50K per account
@trashcan: "Bonus interest is paid on the total balance of all Saver accounts that are held in the same name. The amount of bonus interest you will earn is determined by the balance in your account."
"You can open up to nine Future Saver accounts to help keep track of different savings goals. Bonus interest is paid on the total balance of all Saver accounts that are held in the same name. The amount of bonus interest you will earn is determined by the balance in your account."
Have you done a month and seen the interest come in, or are you just assuming it'll work? Because it seems pretty solid you can't do what you are saying.
@denserham: I stand corrected
As mentioned in the document - https://www.boq.com.au/content/dam/boq/mobile-app/boq-app/fi…
A savings account that is linked to the Everyday Account. This account enables customers to earn a variable
Base Interest rate and Bonus Interest rate when they meet the Monthly Eligibility Criteria on their Everyday
Account. The Bonus Interest Rate applies up to a combined total balance of $250,000 across all Future
Saver or Smart Saver accounts that are held in the same name
It futher mentions:
Customers between 14 and 35 years of age who open the Future Saver Account are able to earn a higher Bonus Interest
Rate for balances up to $50,000.
I did get the bonus interest on both my accounts last month. Maybe its a glitch. I will have to re evaluate my options and move my money out. The T&C's are all that matters.
Thanks. 3% and 14-35 yo.
It's offers like this that makes you feel old.
50k limit, $1000 monthly deposit and 5 transactions… hardly worth it.
Earn 2.35%, inflation 5%. At least buy me dinner first.
Inflation says no
Only for emergency funds. Use saving first before i sold my etf, picked shares, business, properties etc. Multi layers backup plans
Yep, need that cash buffer. Don't want to be short-dating a long-term investment 👍
I’ll take it over 60 bps I’m getting.
Don't forget about income tax!
Wow looks like we will be hopping new banks every month. I was with amp 1.35% then now with Citibank 2.1% this month , then 1st Aug move over to ubank, or another bank that beats this rate. What will make it simpler for a bank to stand out , increase their rate straight to 5% and everyone won’t be bank hopping .
What will make it simpler for a bank to stand out , increase their rate straight to 5% and everyone won’t be bank hopping .
If that happened, said bank would need to raise borrowing rates to compensate. Then they would go bust because lots of people would open savings accounts and nobody would take out a loan with them.
Your account churning may be appropriate, but I'd just suggest having a slightly longer time-frame for your deposit than month-to-month. I try to judge where the top contenders (e.g. UBank, AMP) have been tracking over the last few months and pick the likely winner over at least the next 2-3mo. The time and hassle saved can be more rewarding than the small risk of missing a 0.1-0.25% rate difference for one month.
First to change, last to take effect…nice try ubank stop your games
Hope AMP ups the ante again and makes theirs 2.55%
ubank at least increases the rate accordingly. the big banks don't even do that. NAB still only pays you 0.3% on your normal savings account (up from 0.01%). In the meantime they are always increasing their credit rates the day after the RBA announces an increase.
But saves me now the hassle, moved on the 01.07. all money from AMP to ubank and now it can stay there (if not another bank offers even more once again…).
ubank at least increases the rate accordingly. the big banks don't even do that. NAB still only pays you 0.3% on your normal savings account (up from 0.01%). In the meantime they are always increasing their credit rates the day after the RBA announces an increase.
If you were in charge of a big mainstream bank with a large number of brain dead customers who didn't know any better and only a small proportion of smarter people who laugh at your enormous interest margin, you would do the same thing. Why give people a better deal when most just stick with a major bank no matter what?
In case you guys haven't realised: Ubank is NAB.
Ubank is NAB lol. NAB is what old farts bank with who been with the same checking account since 1963 and will never change til they die.. while Ubank is the online younger more attractive brand boasting no frills and no overheads.. end of the days its the same bank.
NAB’s only been around since ‘82. Just sayin’
… under that name. Originally known as National Bank, and around for a much much longer time. Would have to be 100 years old at least.
Is there an Ozb Savings Account Megathread for comparison? I'm sure there used to be one, back when savings interest rates were actually respectable..
NVM. Too slow.
Glad to have moved my cash holdings from AMP to UBank on Aug-1.
Though slow, they haven't lagged as poorly as AMP and they're remaining one rate increase ahead.
(ING is not in my consideration given all their eligibility hurdles)
Did you move last year as today is still in July.
Anyway these don't affect me, I use all my money to pay bills.
Last year, this year - semantics.
Thanks Marty
Semantics
More so when you hit 88mph
Thanks. Correction: Jul-1
I use all my money to pay bills.
Also, lol. Or sorry, I'm not sure…
Yeh man . should wait 3 days … AMP will likely jack their rates up too, you'll just be moving it back.. patience is virtue.
That would be a surprise. AMP only announced an increase one week ago for the RBA change from Jun-7 to take effect Aug-1.
So what, does AMP announce again at the end of this month for an increase Sep-1?
Also UBank applies the interest for the month you make the deposit, while AMP applies the interest to the next month.
At the moment AMP is effectively lagging 2 months, and still has a lower rate.
I feel like I've picked the right horse, at least for a little while…
Its not illegal to revise your original announcement.. watch this space. right now make no sense to move money to Ubank if people are thinking of doing so … can wait til 30th July. Then move if there is no revision.
right now make no sense to move money to Ubank
Today, UBank paid me 1.85% p.a. interest on my deposit.
If left with AMP, 1.35% p.a. would have applied. AMP's next rate increase (Aug-1) will not be applied to deposits until Sep-1.
UBank's future rate announcements are higher than AMP. UBank's future rate increases take immediate effect from that date (i.e. next will be Aug-1 when it's 2.35%).
I'm content making my decision based on these facts.
If you have a different view on things, be free to do as you wish.
Talk about a delay,
Instant loan hikes vs month delayed savings hikes.
Am very happy with this though, better than the measily 1.1% from a few months ago.
screw these accounts, term deposits for 12 months are better now
i'm sick of doing 25 x 1c transaction every month
mystate, me bank all 3%
can delay income to entire next FY
i'm sick of doing 25 x 1c transaction every month
What?
5 savings cards
This deal just needs $200/month deposit. Easy.
@McFly: im more for delaying income till the next FY,
the TDs may be 3.5% soon anyway
if you want a good return invest in asx:pl8
@Donaldhump: TD not liquid. This saving acct is the first to spend when emergency funds required. Of course offset or redraw better for investors or home owners
@countmein: thanks mate i wasnt sure how to balance my money but please advise
say you had 500k
250k in shares
200k in TD's;
50k in savings
a TD is liquid too, you can get monthly paying ones.
@McFly: yes i don't do monthly so i dont know
keep enough savings in ubank
key goal is to split across multiple institutions large amounts though, and to be able to delay income to next FY when not planning on working
i'd imagine TD's will be 3.5% by mid July
@Donaldhump: Monthly paid TD wont get that high, even lower, mostly above 3% are above 12 months locked in, paid at maturity.
didnt you say you prefer income for next FY, not many can afford waiting 6-12 months
Mystate 3% if you hold for 12 months, 2% hold for 5 months
Mebank 3% for 12months, 2.5% hold for 6 months
And if i had 500k i wouldnt worry about 1% diff lol
@Donaldhump: standard interest rates are quickly going to go above 3% at which stage the term deposit will be lower.
Why 26 days later?