Is a term deposit right for me?

Savers and investors who are looking for a reasonable return on their money may be looking around at their options. These might include a high interest online savings account, shares or other risky investment or a term deposit.

A term deposit may be the best choice for you if you want to lock in a fixed rate of return with very little risk.

Term deposits do require you to lock your money away for a fixed length of time, so if you think you might need to make a withdrawal, choose a short term or investigate a savings account. Many advisers recommend splitting a large sum of money into a number of term deposits and staggering their maturity dates so you always stay on top of good rates at any time.