Are term deposits safe as houses?
If you’re saving for a home loan deposit, a term deposit could be a smart place to park your spare cash.
Product | Max rate | Min. deposit | Company | Interest rate | Next rate increased | Features | Go to site | |
---|---|---|---|---|---|---|---|---|
2.00% p.a for 3 months | $250,000 | ![]() Term Deposit ($250k+) | 2.00% p.a for 3 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||
1.70% p.a for 3 months | $1,000 | ![]() Term Deposit | 1.70% p.a for 3 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||
1.60% p.a for 5 months | $1,000 | ![]() Green Term Deposit | 1.15% p.a for 2 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||
1.60% p.a for 7 months | $5,000 | ![]() Advance Notice Term Deposit | 1.45% p.a for 3 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details | |||
1.25% p.a for 60 months | $5,000 | ![]() Term Deposit | 0.85% p.a for 3 months | Automatic Maturity Rollover Early Withdrawal Available Is Covered By Government Gurantee Joint Application Available Maturity Alert By Email Maturity Alert By Phone | More details |
If you have a lump sum of over $100,000, you may decide to put it in a term deposit as a secure way of holding your money for a period of time while it earns interest.
Interest rates for term deposits over $100,000 tend be relatively generous because it’s a significant sum of money. The longer you’re willing to keep it deposited, the higher the interest rate is likely to be as well.
However, investing in a term deposit isn’t your only option. Here are some of the potential benefits and drawbacks of investing over $100,000 in a term deposit, as well as some other investment options to consider.
Term deposits are one of the safest ways to invest more than $100,000, but as we’ve seen above, they do have their downsides.
Some of the other popular investment options for $100,000-plus investments include the following:
There are many other ways to invest, and each comes with its own benefits and drawbacks, so it’s worth doing some research to choose an investment option that suits your needs and goals.
If you’ve decided to go with a term deposit as a low-risk, low-maintenance investment for your money, take a look at RateCity’s term deposit comparison tool.
You can enter a minimum deposit amount (over $100,000, for example) and a minimum term to see results tailored to your preferences.
Gabriel is one of RateCity's financial content specialists, working across the site to help make mince meat of monetary jargon.