Term deposits are investments with a guaranteed interest rate for a specified period of time.
Term deposits, especially online, offer good interest rates because:
● The banks match their deposits with their investment terms only.
● The banks are attracting more and more of local funding instead of going for overseas funding of the deposits book.
Term deposits are very helpful if you are saving for your first home, a new car or maybe a good holiday.
Why you should go for term deposits?
● Interest is calculated on a daily basis and can be paid on existing investments.
● The payment on the interest can be paid quarterly, annually and also at maturity depending on the type of investment chosen.
● The range of the terms is from 30 days to five years.
● No need of paying any management or establishment fees.
● Maturity advice is sent on a weekly basis prior to the date of investment’s maturity.
Term deposits can also help you stay disciplined when it comes to saving, which helps you avoid the temptation of frequent withdrawals.