UBank Term Deposits

If you’re looking for a way to invest money for a set period at a fixed interest rate, then you might be interested in learning more about UBank’s term deposits.

What term deposits does UBank offer?

At the time of writing, UBank offers two personal term deposits: Standard and Green. When you choose a Green Term Deposit, UBank says NAB (which owns UBank) will match your deposit to a portfolio of renewable energy projects such as wind and solar energy, low carbon transport and low carbon buildings.

UBank says all term deposits feature zero fees and a loyalty bonus of 0.10% p.a. when you roll over your full deposit amount.

Compare Term Deposits

What terms are available on UBank term deposits?

According to UBank, it offers term deposits with terms (the length of time your money is deposited) ranging from one month to one year.

You can use Canstar’s term deposit calculator to help you work out what term length might be suitable for you. One factor to consider is that longer terms typically come with higher interest rates, but you would have to wait longer to benefit from the higher interest rate that can come with reaching the maturity date.

When deciding on a term deposit, it’s a good idea to carefully consider the length of the investment term, as some products may charge a fee and require a certain notice period if you need to access your money early.

When is interest paid on UBank term deposits?

UBank’s term deposits offer customers the choice of receiving interest payments at the following frequencies:

  • For term deposits shorter than 12 months, interest is paid at maturity
  • For 12 month term deposits, interest can be paid monthly or at maturity
  • For term deposits over 12 months, interest can be paid monthly, annually or at maturity

It’s worth remembering that the option you select may have an impact on the rate of interest you earn.

Canstar’s term deposit calculator can help you decide how you can maximise the interest paid on your term deposit.

Does UBank have a notice period and charge an early withdrawal fee for withdrawals?

At the time of writing, UBank requires you to provide notice of at least 31 days if you wish to access your money early.

In addition, if funds are withdrawn from your term deposit before the end of its term, UBank says it may reduce the interest generated on your term deposit.

UBank’s website and Product Disclosure Statement provide more information on any interest adjustments or other early withdrawal penalties that may apply.

Does UBank charge any other fees for term deposits?

At the time of writing, UBank charges no fees or charges on its term deposits.

For current information on fees and how they apply, please check the Product Disclosure Statement or contact UBank.

How to apply for a UBank term deposit

Before applying for a UBank term deposit, aim to first compare it against other term deposits on the market to ensure it is the right one for you.

Compare Term Deposits

If applying, consider UBank’s eligibility criteria (below) and what you might need to have on hand, such as:

  • Your TFN (Tax File Number)
  • Proof of ID, such as your driver’s licence or passport
  • Personal details, including your residential address, contact information and potentially information on your current job

If you’re applying for a term deposit on behalf of a business, self-managed super fund or other type of entity or organisation, you may need to supply different documents to those listed above. The terms and conditions that apply to your term deposit may also be slightly different.

To see if you can apply online for a UBank term deposit, check to see if ‘apply online’ is ticked in Canstar’s term deposit tables and visit UBank’s website.

Eligibility criteria

According to UBank, when applying for a term deposit, you will need to meet the following eligibility criteria:

  • You must be a personal customer
  • You must be an Australian resident
  • You must be at least 18 years old
  • You must have an email address and an Australian mobile phone number
  • You must be investing a minimum deposit of $1,000
  • You must be willing to invest for a time frame within the minimum and maximum terms specified (see above)

What happens to a UBank term deposit when it reaches maturity?

According to UBank, when a term deposit reaches the end of its term, you can instruct UBank to:

  • Rollover your full initial deposit (or more) for another term. If you do this, UBank says you will receive a Loyalty Bonus on the new term. At the time of writing, this is 0.10% p.a. on top of the current standard interest rate.
  • Rollover part of your initial deposit for another term. UBank says the Loyalty Bonus will not apply.
  • Transfer your deposit to bank account and close term deposit.

UBank says that if it does not receive instructions at least two days before maturity, it will automatically invest your existing term deposit (including any interest earned) for a new term of the same length at the the applicable interest rate.

About UBank

UBank was launched in 2008 and operates as a division of NAB. UBank is an online bank offering digital home loans and banking. Since it has no physical branches, UBank says it has fewer costs compared to traditional banks.

Written by: Tamika Seeto | Last updated: April 4, 2019