Managing term deposits to get best returns

In a review of the term-deposit market in 2010, the Australian Securities and Investments Commission found a significant proportion of term deposits rolled over from high interest rates to low rates.

ASIC's MoneySmart website says, “You probably shopped around for a good interest rate when you first took out your term deposit. It's just as important to shop around when your term deposit is maturing and you want to invest for a further term.”

Before the roll-over date, you can contact the bank, find out what the rates are for different terms and make sure your new term deposit offers a competitive rate.

Source: Sydney Morning Herald