When looking to compare term deposit rates, it is important to consider some of the highest interest term deposits online, plus the fees and conditions attached to the account.
Depositing your savings into a high interest term deposit with a financial institution may be a great way to make your money work for you. A term deposit is different to a savings account because it restricts you from accessing your money until the fixed term has expired. On the other hand, locking away your savings in a term deposit account will return you a much higher rate of interest than a transaction account, and often more than most savings accounts. To help get some of the best deals, compare term deposit rates online because they can vary significantly.
Typically, with fixed and long term deposit accounts, there are no establishment fees, setup fees or ongoing fees. That said, breaking your agreement prematurely may incur a hefty penalty charge. Some institutions deduct a percentage off your interest rate, while others may also charge you a break cost. Be sure to read the fine print of all the lenders when you compare term deposit rates to avoid being slugged with a heavy penalty.
Once a term deposit reaches maturity, you can collect the money or you can ‘roll over’ the funds to another fixed term deposit. Whatever you decide, make sure you contact your financial institution before the term expires, because if you don’t, your money may be rolled over into a new term deposit, which may be paying a lower rate of interest. To ensure you compare term deposit rates before term expires, consider putting a date in your diary to ensure you don’t miss the deadline.
A term deposit is generally viewed as a conservative investment option when compared to trading stock or purchasing property. Backed with a permanent guarantee by the Australian Government (see here for more information), term deposits can provide you with peace of mind when saving long term.