Many Australians who are seeking to invest their savings consider term deposits as a secure investment option and keep a close eye on blackboard specials – but should they?
While term deposits aren’t everyone’s cup of tea, for many it’s a less volatile investment option for those that aren’t ready to take the leap into property investment or try their hand at the share market.
What are blackboard specials?
Term deposit blackboard specials are special interest rates offered by banks to entice new customers. Derived from an old custom where banks would advertise their best rates on blackboards outside their branches, the blackboard specials are still alive and well.
Of course, to pick up a great rate you don’t have to make the trip to the bank anymore as the blackboard has since been ditched for a much more effective marketing tool – the web!
A quick search on the web will reveal which banks are currently offering special interest rates, with term deposits deals available for 90 day terms, and ranging up to 60 months.
These specials can pay up to four percent for investment periods, with bonus interest rates offered if you rollover at maturity. If you do choose to reinvest the principal or principal and interest at maturity, make sure you are aware of your new interest rate as this may have changed during your investment period.
When you are choosing an investment, consider all your options thoroughly and compare term deposits online so that you can be comfortable knowing you have invested your savings wisely.