Savings accounts vs term deposits
High interest online savings accounts offer good rates of return with conditions attached. For example the high ‘bonus’ rate may only be for a limited time, maybe 4 months. Or the account may require a minimum deposit each month.
Term deposits of between three and 12 months can provide a good interest rate for the entire term, and of course there are no monthly deposits that have to be made and no bonus rates that expire after a few months.
However your money will be locked away for the term. Some banks allow you to break term deposits, but conditions apply.
Source: The Age