Term deposits can be a secure way to invest your money and earn interest on your funds.
With nine-month special term deposits, you can earn even more interest on the money you invest.
What is a term deposit?
A term deposit is an agreement you make with a financial institution to deposit a certain amount of money for a certain amount of time.
The money that you deposit is invested and earns a fixed interest rate during the allotted timeframe.
After your term has expired, you’re able to reclaim your investment along with the interest that was earned.
What is a special term deposit?
A special term deposit is much like any other term deposit, but with a couple of important differences. The most significant of these differences is the opportunity to earn compound interest.
Compound interest means that you’ll be paid interest on your initial investment amount, as well as the interest you’ve earned on your initial amount. Essentially, compound interest is the benefit of earning interest on the interest you earn. This is one of the major benefits of special term deposits, because it means you’ll have earned extra interest at the end of your term.
How long can a special term deposit be?
You’re able to choose the length of your special term deposit. You might decide to base your term on the amount of interest you want to earn, or when you need to access your funds.
For example, nine-month special term deposits can be reclaimed after nine months, rather than a standard timeframe like one year.
What are the benefits of nine-month special term deposits?
A nine-month special term deposit can offer you a range of benefits. One of these is the compound interest you can earn. With a nine-month special term deposit, you’ll earn interest on the amount of money you initially deposited, as well as earning interest on the interest your initial deposit has made. That means that after nine months, your profit will be compounded.
Another benefit is the length of the term. Rather than locking your deposit away for years, you can earn interest for just nine months before reclaiming your funds.
Are there risks in agreeing to a nine-month special term deposit?
One of the best things about term deposits is that they’re relatively low-risk. When you agree upon an interest rate, you know exactly how much your investment will be earning. There’s also a government guarantee on your funds. There may be stipulations, so it’s best to talk to your bank about their guarantee scheme.
If you’re looking for a low-risk way to invest that doesn’t take your funds for years, then nine-month special terms deposits might be a suitable choice. Don’t forget to compare term deposits to make the best decision for your future.