If you are currently looking for some way to invest your hard-earned money to get some well-deserved interest then this is a pretty exciting time because you can now take advantage of deposits that if you keep them in the bank for a certain period of time, then you get a guaranteed fixed interest rate. This is incredibly useful if you want to plan ahead because you know exactly how much money that you’re going to get at the end of the term and you know when you’re going to get it.
If you are unfamiliar with term deposits then you should know that your money will be locked away for a certain period of time and the more popular choices that many people make are for one year, three years and five years. Your lending institution will stipulate a minimum amount of money that you need to open one but it is normally very affordable. If this all sounds very new to you and you would like to learn more about the features of term deposits and how you can find the best one in Australia then please continue to read.
- You get higher interest rates – When you compare this kind of deposit to a savings account for example then you have the opportunity to make a lot more money because the interest rate is significantly higher. The key is to put in as much money as you can afford and to leave it for as long as you can because this will get you the highest interest rate.
- Your deposit is protected – We all need peace of mind when we put our money into any lending institution and so the Australian government offers us the financial claims scheme which will protect any deposit that you make up to the value of AU$250,000. In the extremely unlikely event that the financial institution goes to the wall then your deposit is protected.
- Absolutely no fees to set up – Thankfully there are no setup account fees that need to be paid but there are some rules in place like if you need to get hold of your money before the agreed term comes up, then you need to give them a certain number of days notice or they will charge you some kind of penalty fee. It always makes sense to make sure that you check the terms and conditions so you know exactly what you’re signing up for and what you are investing your money in.
- Interest payments into another account – This is incredibly useful because any interest that you make on your term deposit will be paid into another linked account and this means it you can get your hands on it whenever you need it the most.
Always make sure that you shop around so that you get the highest interest rate possible because there are many different lending institutions out there and they have many different offers. Make sure you know the interest rate and the timeframe that you are depositing for.
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