National Australia Bank yesterday lifted its at-call rates and some term deposit interest rates on deposits marketed through its UBank brand, a move somewhat against the trend.
UBank lifted its rate by 10 basis points to 5.01 per cent. It also lifted the bonus that applies for regular savings by 10 bps, taking it to 70 bps, and the maximum rate available on at-call deposits to 5.71 per cent.
NAB may perceive a need to follow the rate lead set by Westpac through its Rams brand, which is now being used to raise deposits. The highest rate paid by Rams is 5.75 per cent, according to comparison website Mozo.
Alex Twigg, general manager of UBank, explained the rate increase differently, however.
"We've always provided the best rates on the market. We've always priced for loyalty. The primary driver is the best value for our customers."
A recent assessment by the Reserve Bank of Australia put the decline in online savings account rates at an average of 75 basis points over the two months, the same as the fall in the cash rate.
The RBA put the average rate for an online savings account at present at 3.6 per cent.
- NAB follows Westpac lead on at-call rates
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11 July 2012 6:44am
