UBank plays the three-card trick

John Kavanagh
UBank issued a media release yesterday, announcing that its three, six and 12-month term deposit rates had been increased by between 10 and 22 basis points.

However, it is only a couple of weeks since UBank, a division of National Australia Bank, cut its TD rates.

According to Infochoice, UBank's 12-month TD rate was cut 19 basis points from 5.35 per cent to 5.16 per cent on September 9.

According to yesterday's announcement, the 12-month rate rose 10 basis points, from 5.11 per cent to 5.21 per cent.

Filtering out the noise, UBank is doing what every other deposit taker is doing - cutting TD rates.

To give UBank its due, it does offer good rates. Reserve Bank figures show that the average 12-month term deposit rate has fallen from a high this year of 5.1 per cent, in March and April, to 4.4 per cent in August.