What types of term deposits are there?
Have you considered incorporating term deposits into your savings strategy? With guaranteed returns on deposits up to $250,000 in Approved Deposit-taking Institutions (APIs), term deposits are a safe and easy way to grow your savings.
Understanding term deposits
A term deposit is a financial investment where you put an initial deposit away for a set period of time. As the term matures, it accrues interest at a previously agreed rate.
We’ve pulled together the different types of term deposits to help you find one that suits your savings style.
Types of term deposits
· Advance notice term deposits: These types of term deposits require 31 days’ notice to withdraw money. They often come with a high interest rate in return for leaving your money for longer.
· No notice term deposits: A no notice term deposit offers the flexibility to withdraw money without providing any notice.
· Short term deposits: Terms of 12 months or less are considered short term deposits, and they often come with lower interest rates. As the length of these terms can be 30 days, 90 days, six months or 12 months, it’s easier to reinvest in a term with a more competitive interest rate once it matures.
· Long term deposits: Terms longer than 12 months are considered long term deposits. While you won’t be able to access your money for a longer period of time, these usually offer higher interest rates.
· Interest paid monthly term deposits: Most term deposits will only pay out your interest once the term matures. But there are some types of term deposits that pay interest monthly.
· Low balance term deposits: These types of term deposits usually require a smaller amount to open compared with your typical term deposit. It is a great way to save with a smaller amount of money but this does coincide with the amount of interest you can accrue.
How does InfoChoice compare term deposits?
By using competitive tools, InfoChoice has helped people make informed decisions about their financial purchases for more than 20 years.
Our tools are comprehensive, informative, accurate and up to date. We can help you compare, find, choose and apply for a variety of financial products using our results table that allows you to shortlist with ease.
InfoChoice simplifies the process of choosing term deposits by comparing:
· Interest rates: The interest rate will impact how much money you earn on your deposit.
· Term lengths: You can put money away from anywhere between 30 days and five years. But depending on the type of product, you might be penalised for withdrawing money before the term is up.
· Products: There are many different products to compare. InfoChoice lets you find products by name.
To help set your budget and meet your savings goals, we have a number of savings-related calculators:
To discover your savings potential, start comparing term deposits with InfoChoice today.