Term deposits need active management

InfoChoice’s Laura Crowden said savers need to “actively manage” their term deposits and warns people not to “set and forget” their term deposits.

“Savers should regularly shop around and compare rates,” said Laura.

“Most importantly, be willing to move their money to a different institution to get the best rate.”

And don’t get caught out by rollover risk.

“If you do nothing at the end of your term deposit period your bank may roll over your term deposit into a new term deposit.

“It’s likely that the new term deposit will have a lower interest rate.”

Source: Herald Sun