A six-month term deposit is just one of the short-term investment options available for term deposits, and is also referred as 180-day terms by some financial institutions.
Other common short-term investments offered are 30-days (one-month), 90-days (three-months), and 120-days (four-months). Some institutions may also offer 270-days (nine-months)
Six-month term deposits can be a great option for those with a large amount of cash lying around and who can afford to lock their money away for a longer period of time. The rates offered by financial institutions are usually a bit higher for six-month terms as opposed to shorter terms such as 30-days, so it could be a better solution if you want to grow your money.
For instance, if you deposited $10,000 into one of the highest six-month term deposit accounts on RateCity at 6.45 percent (current as at December 1, 2010) you would be $170 better off at maturity than depositing the same amount into one of the highest rates for 90 days at 6.00 percent (current at December 1, 2010).
Just be aware that the funds you invest are essentially locked away until they reach maturity, so if you decide to exit your term early you may incur a high penalty fee. Also be aware that you may be charged more for larger amounts of money, so before you decide to take up a term deposit make sure you have considered whether you will need to access these funds before the term ends.
To find out how much a financial institution will charge you to exit from your investment early, read the product disclosure statement (PDS) for a list of all fees and charges.
To get the most out of your investment, don???t let your account automatically roll over once it reaches maturity, as this could be a lower rate than what???s on the market. Notify your lender of your plans to withdraw the funds or to deposit into another term. Before you re-invest the money with the same lender, shop around and compare term deposit rates online to see what other lenders are offering as you may be able to get a better rate.
The table below lists some of the best six-month term deposit rates currently available.