Why a 2 Year Term Deposit?
For a longer-term savings goal look into investing in a 2 year term deposit with competitive interest rates.
The highest rates for any term deposit product can generally be found around 1 year terms as interest rates generally decrease with terms exceeding 1 year. However, if you are a disciplined saver, have a relatively large deposit and are planning to use your interest earnings as a regular source of income than a 2 year term deposit could be ideal.
For a quick rate comparison take a look at some of today’s best rates displayed on our term deposit tables and adjust the setting to select your desired variables such as term.
What to look for with a Term Deposit
Features to pay attention to when choosing the best term deposit:
- Nominal interest rate – The advertised interest rate
- Effective interest rate – The actual interest rate including compounding effect of payment frequency
- Early withdrawal fees – A penalty fee if you withdraw funds before the term ends
- Opening deposit – Some banks and institutions set a minimum requirement of $1000 for opening a term deposit account. Smaller deposit amounts are desired less by institutions however some
- Automatic renewals – Most term deposit products have an automatic renewal clause whereby your deposit is rolled into another savings account if you don’t give instructions to close your account before the end of the term
- Product disclosure statement – If you are unsure about some of the features of a product then it’s always a good idea to read the fine print. A product disclosure statement (PDS) will probably be able to answer any questions you have about your new term deposit account