12 month term deposit vs five year term deposit
Right now savers are dealing with low interest rates but they are generally protected from the upheavals in share markets.
Investors looking for a good return from a term deposit need to weight up the rate and the length of time they want to lock their cash away for. Longer term deposits generally pay higher rates per annum. Many five year term deposits are paying well over three per cent interest. 12 month term deposits are paying in the high two per cent range with some providers offering rates near three per cent.
Many advisers recommend that savers hold a range of different term deposits with different maturation dates.