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UBank USaver - Rate Increased to 5.71%

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UBank USaver - Rate Increased to 5.71%
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His_Holiness on 10/07/2012 - 11:12 facebook.com (1529 clicks)

From their facebook post:

Good Morning Customers,

Today we've announced some exciting changes to our USaver rates.

Our new standard variable rate for USaver has increased to 5.01%p.a. from 4.91%p.a. and our Bonus Rate has increased to 0.70%p.a. from 0.60%p.a. This brings the total rate to 5.71%p.a. with the Savings Bonus.

USaver Reach has also increased to 5.71%p.a. from 5.51%p.a.

USaver SMSF has been increased 5.01%p.a. from 4.81%p.a. This brings the total rate to 5.61%p.a. with the Savings Bonus.

For more information on our USaver rates visit www.ubank.com.au/ub/web/usaver/online-savings-compare-our-ra…

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Referral: random (1040)

Referrer and referee each receive $10 after referee makes 5 settled card purchases within 30 days.

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closed Comments

  • ozshaz on 10/07/2012 - 11:13
    +11

    ahh..thats good..i had send them an email yesterday only stating the 5.75 % interest rate of RAMS..i think they heard me :-)

    • SomeGuyOnOzB on 10/07/2012 - 11:21

      I was looking at term deposits but I guess I'll keep my money there then :)

    • VehemenceThePhoenix on 10/07/2012 - 11:41

      Well so then the RAMS saver still looks better http://www.rams.com.au/savings-accounts/rams-saver/
      The USaver is fee free too?
      Anyone have recommendations regarding either?

      • samfisher5986 on 10/07/2012 - 11:55
        +4

        RAMS is hardly better… Maybe for specific people?

        "make no withdrawals during the month"

        wrecks the deal.

        Why would you not deposit all of your money and then withdraw it for all your irregular purchases?

        If you don't do this, your losing interest, likely more then the extra RAMS interest you get.

        • VehemenceThePhoenix on 10/07/2012 - 11:59

          Yeah that is a good point, but I am mostly looking at this in replacement of a term deposit though, so not huge for me. But the very small difference in interest is also not very significant. Both look good, but UBank seems it may be a bit more convenient.

        • universe93 on 12/07/2012 - 20:05

          it's a savings account, not an everyday transaction account. it's not the same as ING, it's meant to be a replacement for a term deposit or a savings account.

      • erd on 10/07/2012 - 11:56
        +4

        RAMS does not allow you to withdraw any money for this rate (%5.75). UBank has no restrictions with withdrawals.

        • Shwayne on 10/07/2012 - 12:20

          Does it allow your balance to deprecate? I.e. can you take the $200 you deposit out monthly, such that it remains the same balance over time?

        • samfisher5986 on 10/07/2012 - 12:46
          +1

          Yes you can take the $200 out you deposit monthly with uBank.

      • mooboy on 10/07/2012 - 11:58
        +2

        The RAMS is only higher if you make no withdrawals. So, if you plan to semi-regularly take money out, UBank should be better. (sorry - duped what others said - should have refreshed before posting)

      • c64 on 10/07/2012 - 12:53

        rams transfers out take 2 days so you lose 1 days interest. also no withdrawals or you lose your good interest rate :(

        i closed my rams account a couple days after opening it. not worth the hassle and restrictions just to earn a few extra $

      • The Quote Train on 10/07/2012 - 17:55

        Everyone seems to froth over the RAMS saver for a little extra %

        Who are RAMS backed by? These lesser known outfits are probably using your money to lend to the more 'risky' customers.

        I know where I'd prefer my money to be.

  • onetwothreefour on 10/07/2012 - 11:14
    +2

    It looks like it's also increased to that rate for existing customers.

    • MadMaxBargainRoad on 10/07/2012 - 11:24
      +1

      Just confirmed with my own account. Nice :)

  • shaybisc on 10/07/2012 - 11:29
    +6

    It's funny, UBank email announce absolutely everything to do with my account but no mention of this.

    • snappy1234 on 10/07/2012 - 15:32

      bah ! same as all banks (wish they would give notice when it DROPS !!!)
      moving our cash to the best deal.

  • rifter on 10/07/2012 - 11:29

    Term deposit rates unchanged and still considerably lower.

  • VehemenceThePhoenix on 10/07/2012 - 11:32

    damn this is better than my commbank term deposit

    • c64 on 10/07/2012 - 12:59
      +9

      well that's hardly suprising - commbank aren't very competitive

      • fchis on 10/07/2012 - 14:07

        ya, but still there are heaps of people park their money with them unfortunately. except me tho.

  • shoppe on 10/07/2012 - 11:35
    +5

    It looks like ubank want more deposits.

    I don't understand why they only allow a maximum of 200,000, to get the savings bonus, when even the government guarantee applies up to 250,000….Strange!

    • cloudbox on 10/07/2012 - 11:39
      -1

      why is that strange?

      • rifter on 10/07/2012 - 11:47
        +1

        CityBank will give you 5.7% at call for up to $500K.
        RaboDirect will give you 5.6% at call for up to $250K.

        UBank at 5.51% had to do something.

        • ozshaz on 10/07/2012 - 11:50
          +1

          are their rates limited to 3-4 months? I think they are whereas Usaver just needs to add $200 per month for the additional bonus rates..

        • rifter on 10/07/2012 - 11:54
          +2

          4 months. Take it while you can.

          At CityBank you can have multiple accounts in the same name. Each new account gives you another 4 months.

          At RaboDirect new accounts need to be in different names. Eg. Yourself, your wife, and strangely a joint account is considered new and different. Trust accounts good here also.

          UBank counts all accounts associated with you as part of your $200K limit.

          EDITED: Due to CB and RD names the wrong way around.

        • mystique1 on 10/07/2012 - 14:11
          +2

          Do you mean citibank?

        • rifter on 10/07/2012 - 16:40

          Yes.

      • shoppe on 10/07/2012 - 19:17
        +1

        It's strange that ubank don't allow up to 250,000 with the savings bonus.

        Clearly they want people to deposit more money. The government guarantee applies to 250. (Of course you can deposit as much as you want, however you'd be crazy to, since you'll get a lower interest rate)

        • Utopian on 18/07/2012 - 20:08

          What's strange, is all the tire-kickers… who don't even have 1/10th of that.

  • vjknight on 10/07/2012 - 11:38

    who 'owns' this bank ?

  • knackers on 10/07/2012 - 11:40

    how's this gonna impact on mortgage rates

  • loveagooddeal on 10/07/2012 - 11:41

    Yay! =) Market leader for quite a long time now, whoever is in charge, kudos for sticking to your plan and not being too greedy!

  • Magnate on 10/07/2012 - 11:47

    Good stuff!

  • devilbabies on 10/07/2012 - 11:55

    already moved to RAMS when RAMS was 0.24% higher (5.51% vs 5.75%) and wont be coming back until ubank can beat 5.75% by a decent amount

    RAMS is the new market leader at 5.75%

    • shaybisc on 10/07/2012 - 11:59
      +7

      Greek Treasury Bond offering 16%- I'm keeping my money there.

      • VehemenceThePhoenix on 10/07/2012 - 12:07
        -1

        I hadn't heard of that, but found this http://www.daftblogger.com/why-buying-greek-bonds-is-the-sam…

        • shaybisc on 10/07/2012 - 12:13
          +5

          "If you buy a 10 year Greek bond today you are promised 16% yield. That is, if you give €100, you will be given back €116 after 10 years."

          Whoever wrote that doesn't know what they are talking about- it is 16% annually. I don't think you'll get any takers on a 16% return on a 10 year Greek investment.

        • VehemenceThePhoenix on 10/07/2012 - 12:16

          Yeah that's covered in the comments

      • Derrick Crane on 10/07/2012 - 13:15
        +7

        Beware of greeks bearing bonds. :-)

        • Shwayne on 12/07/2012 - 13:53

          undies.

    • samfisher5986 on 10/07/2012 - 12:01
      +5

      Enjoy not being able to withdraw your money…

      • jahnks on 10/07/2012 - 12:05
        +1

        I was going to say the same thing, with RAMS no withdrawls allowed, with Ubank you are able to withdraw.

        • devilbabies on 10/07/2012 - 12:20
          +5
          1. split your money between rams and ubank. i have 10% of my cash in ubank - enough for all my withdrawal needs
          2. you can have up to 10 rams accounts. you only miss out on the bonus interest on the account you withdraw from.
          3. if you need to withdraw from rams then transfer all your money to ubank at the start of the month and transfer it all back the next month
        • mooboy on 10/07/2012 - 15:38
          +7

          5.75% versus 5.71%: let's say you had a stable balance of $10,000… after 1 year of keeping your money in RAMS versus UBank… you've made $4!

          I'd skip one cafe coffee for an instant, and then not have to worry about whether or not I need to make a withdrawal in a given month. Not to mention… the act of moving all yor money from one account to another and back, assuming 5.7%, will lose you the 0.04% extra of interest (assuming one day of interest lost each way).

          I realise the difference was bigger when you moved over - but that's still only an annual saving of $24 for a $10,000 holding. RAMS would only make sense if you're absolutely a net saver - never needing to withdrawal until point you take it all out. So, maybe if you're saving for a home loan deposit and are a good budgeter so never needing to dip back out…

  • Gomo on 10/07/2012 - 12:01
    +2

    About time! But I still miss the 6% rate :) or was it 6.22% :)

    • [Deactivated] on 10/07/2012 - 12:13
      +3

      It was 6.5% when I joined

      • shaybisc on 10/07/2012 - 12:15
        +5

        I remember in the glory Keating years I was getting 17%.

        Can that be right or am I getting senile dementia? It seems mad even as I write it.

        • shaybisc on 10/07/2012 - 12:17
          +2

          And that, from memory, was on a 2 year state bond- SA I think it was.

        • Derrick Crane on 10/07/2012 - 13:17
          +2

          "glory Keating years" = oxymoron.

        • [Deactivated] on 10/07/2012 - 14:22
          +1

          Am not

          Btw was curious and Googled savings interest rate history. In the 1980's the interest rate was avg 15.5%!!

          http://www.vanguard.com.au/vnl/calculators/assetclass/AssetC…

        • Russ on 10/07/2012 - 23:07

          You are remembering correctly. I was going through university at the time, living off what I had saved for a couple of years in the workforce. I was getting 16%, it meant I could live purely off the interest while that rate lasted (about 1-1.5 years I think).

  • Obs on 10/07/2012 - 12:24
    +1

    Never thought I would see the day that this would happen at the same bank.

    UBank Deposit: 5.71%
    UBank HomeLoan: 5.62%

    How long can they keep losing 0.09% on every dollar? Maybe, they will remove the loyalty discount components shortly.

    • uder on 10/07/2012 - 13:39
      +2

      If you look at it as part of NAB's larger mortgage and deposit portfolios then it makes more sense. Same with RAMs & Westpac group.

      • muzzamo on 10/07/2012 - 16:20

        Exactly. Your ubank interest is coming from mega mortgage mugs paying far more than 5.71% on their home loans to the wider NAB group. Reverse for home loan funds.

    • sphinx on 10/07/2012 - 15:17

      well. I am with UBank Homeloan at 5.62% right now and I have a uSaver account linked. I suppose I can just redraw the maximum allowed amount from my Uhomeloan to uSaver to earn a bit more money rather than paying it down!! I should try but I suspect they will close this loop hole for their existing uHomeloan customers?

      • fchis on 10/07/2012 - 16:29

        I suppose the quicker you pay for the principal amount the less interest you will pay.

        • sphinx on 10/07/2012 - 17:03

          Imagine you are borrowing 1 million dollars at 1% from one place and deposit it immediately at another place which gives you 10% interest rate.. of course you made money without using your own money.
          Here it is 5.62% vs. 5.71%.. the difference is so tiny ..so not worth it even for a mortgage at 1 million AUD (perhaps earning 500+$ per year after tax on interests even you borrow 1mil at 5.62% and redeposit it at 5.71% ).. but still positive.

        • fchis on 10/07/2012 - 17:42
          +2

          But with the interest you earn you need to pay tax (about 1/3 goes to tax depends on how much you earn). So it's not really worth while of doing it.

      • mjs on 10/07/2012 - 16:45
        +1

        Don't do that! You will pay tax on any interest you earn in a uSaver, whereas the interest you "earn" on your redraw amount (i.e. the amount you're not paying interest on) is tax free.

        • sphinx on 10/07/2012 - 16:59
          +1

          Even considering tax on interets, you still earn a tiny amount over the difference. not worth the effort here, but technically you do earn a difference.

    • GrownShrooms on 10/07/2012 - 18:22

      They're really going after deposits by enticing people with a high savings rate and then don't they reinvest the deposits? If that's the case, the apparent "0.9% loss" is trivial.

    • Shwayne on 12/07/2012 - 13:56

      What's stopping me from taking out a 200k loan and depositing it in the uBank account?

      At the end of the term I will have made money? D:

      • surethang on 12/07/2012 - 20:54
        +1

        Cool! Count me in. The $180 at the end of the year will be nice, but I'm really in it just so we can attend church every week and pray to the Gods of finance that the rates don't move against us

  • Punkboy on 10/07/2012 - 12:34

    Anyone know of high interest deals for money kept in Pty Ltd company name?

    • Russ on 10/07/2012 - 23:16

      If it's your business, talk to your accountant. My accountant said I can loan money from my business to myself, and as long as it is paid back before the end of financial year, the tax office doesn't care about the loan. Deposit the money in a personal term deposit, maturing before EOFY, then pay it back and keep the interest. Don't forget to state the interest earned on your tax return, it's definitely taxable.

      But do check it out yourself, it's always possible my accountant has misunderstood the rules.

      • Punkboy on 11/07/2012 - 16:42

        Thanks - I read through some stuff on ATO site and had that impression but couldn't be sure. Otherwise you need loan documentation in place and to pay interest at a certain rate.

  • sarbz on 10/07/2012 - 12:54
    +3

    great news, i love banking with UBank. Great to see them up the rate again after a few decreases.

  • ade123 on 10/07/2012 - 13:27
    +1

    Going to switch to UBank while BankSA "award" their existing customer 4.25%pa …..

  • SpaceNinja on 10/07/2012 - 13:37
    -7

    Title should mention interest rate after Taxman's cut; just like we mention shipping and surcharges for other bargains. /sarcasm

  • Nousernamehere on 10/07/2012 - 13:41
    +2

    I'm still lucky to be enjoying a Bankwest rate of 6.15%, which was a standard 4.5-5% rate (can't remember exactly) and the rest was a 'bonus' for 12 months.. That was like 3 years ago and still getting the bonus amount :-P

    If they ever do realise I might have to move my money over I think!

    Trav

  • [Deactivated] on 10/07/2012 - 14:20
    +3

    I have been with UBank for over 4 months and am VERY happy with the returns. However, web User Interface is horrible and needs to be improved but it does the job. As long as I get a good rate I can put up with the UI. The customer service is excellent.

    Don't forget you need to setup a minimum of $200 automatic savings plan (ASP) to get the bonus interest rate. The bonus interest rate begins the month AFTER you set it up. So if you set up the $200 ASP per month in June, bonus interest rate starts in July. You can cancel the ASP and set up another in the same month and not lose the bonus rate as long as the ASP payment has been made for that month.

    • Shwayne on 12/07/2012 - 13:57

      So set it up on the last day of the month?

  • bitcoinorbust on 10/07/2012 - 14:39
    +2

    too late, transferred everything to rams just yesterday. bahhh mustve been my huge withdrawal that triggered this increase.

  • aurotaro on 10/07/2012 - 15:29
    +1

    Customer service at Ubank has probably been the best I have faced for the 2-3 calls I have made in the last 2-3 years. As friendly as they get and the girls are nice to talk to as well.

  • adante on 10/07/2012 - 19:23
    +1

    good stuff. Been meaning to jump to RAMS for a while, guess I won't bother now.

  • jo2055 on 10/07/2012 - 21:20
    +1

    RAMS could reduce rates any times and by moving money you lose interest stright away.
    RAMS is not the bank and you could not compare it with Ubank. If you know history of RAMS you wont risk with your $$$ for 0.04%. I am with UBank for a long time and find them to be flexible, provide
    more or less fair deal and good customer service The main advantage is that you have access to the money,no limits to linking accounts and good security ( SMS ). It is definitely worth 0.04% from
    taxable interest…
    All other premium offers ( Rabo, ING etc ) only for 3-4 month and considering 2-4 days lost,when
    you invest/withdraw money ( up to 3 working days by T&C )looking less attractive.

    • adante on 11/07/2012 - 08:03

      Just out of curiousity what is the history behind rams?

    • troy1976 on 12/07/2012 - 23:59

      Hi there. RAMS is exactly like Ubank in that they are second-tier organisations run by Big Four parent banks (Westpac for RAMS, NAB for UBank). RAMS is no longer the independent company it originally was.Just like Coles has 'value' home brands and 'premium' home brands.

      There is absolutely no difference in risk between the two because the Australian Government guarantees your deposit up to $250k - if there is a need for a bailout, it will largely be paid for by the Australian taxpayer irrespective of the financial merits of either of those companies (or their parents).

  • cdeep0 on 10/07/2012 - 22:00

    ..Rabodirect is great…not going anywhere ….my 2 cents..

    http://www.rabodirect.com.au/

    • vk2xxy on 11/07/2012 - 18:35
      +1

      When Rabo started they use to sledge others for their bonus rates for new money. Now look at them.

      That said, I have an account with them and a linked transaction account at QANTAS Staff CU. If I start a transfer out of Rabo prior to 5:30pm weekdays the money is in the CU by 9am the next day.

  • NimitzHarrington on 10/07/2012 - 22:13
    +1

    Good deal. If only ING Direct could get off their backside and do the same. They haven't been competitive for a fair while now…

    • nickj on 11/07/2012 - 10:56

      Definitely. Got my statement in the mail from ING yesterday, and there in black and white was both cause: "Variable rate as at end of statement: 3.75% pa", and effect: "Total interest for financial year to 30 June 2012: $0.00".

    • R00D on 12/07/2012 - 08:13

      They'll get competitive when people cease to be lazy. ING would still have a largest customer base in this arena, people are obviously not pulling out so why change?

    • c64 on 13/07/2012 - 22:33

      i see on their web site that they are offering 3.75 + 0.75 bonus if you increase your balance by $200 per month

      • al2011 on 16/07/2012 - 15:59
        +1

        4.50% < 5.71%

  • Lenneth on 11/07/2012 - 00:09

    They haven't updated their term deposit rates so I guess they expect rates to drop even further?

    • herzy on 11/07/2012 - 00:24

      Well, yes. As do most economists.

  • mehow on 11/07/2012 - 17:27

    This is a step in the right direction however RAMS is still better. The cap on USaver is 200K whereas with RAMS its higher. Also RAMS pays more interest.

    • Trance N Dance on 12/07/2012 - 00:27
      +2

      However with RAMS, your money is locked in and you have to deposit $200/month to get the bonus interest. Whereas with UBank you can freely move your money and still get the bonus interest as long as you deposit $200 each month (the $200 can then be moved out the next day or whenever)

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