If you’ve managed to save $50,000 or more and you’re looking for a way to give your savings an extra boost, a term deposit might be a good option.
By investing in a term deposit, you’re essentially agreeing to lock your $50,000 away for a set period and earn a fixed amount of interest on your money. When the term deposit finishes, the bank will give you back your initial $50,000, plus any interest you’ve earned during the term deposit. Once you have your money back, you can either choose to reinvest it in another term deposit, or withdraw it and use it towards whatever you were saving for.
When it comes to investing $50,000 in a term deposit, you have two options: a short term deposit or a long term deposit.
A short term deposit is generally anything under 12 months and usually a minimum of 30 days or one month. A long term deposit is regarded as anything over 12 months and can be up to 10 years in some cases.
The type of term deposit you choose to invest your $50,000 in will determine the interest rate you earn. In most cases, longer term deposits tend to have higher interest rates, which means you’ll earn more on your $50,000. When weighing up your options for interest rates over $50,000, take into account the amount of flexibility you need.
While long term deposits offer great stability, the downside of locking in interest rates over $50,000 for long periods is that you may miss out on any future potential rate rises.
How to compare interest rates over $50,000
To compare how much you can earn with interest rates over $50,000, use our free online term deposits calculator. By comparing variables like interest rate, short term deposit options and long term deposit options, you should have a better picture of the type of return you can expect on interest rates over $50,000.
When evaluating interest rates over $50,000, think about your personal circumstances, including your spending and savings habits. If you’re a good saver and you anticipate adding to or needing access to your savings regularly, you may wish to consider the interest rates over $50,000 on high-interest savings accounts.
Get a more accurate idea of how much you can earn by investing over $50,000 in a term deposit and how different interest rates over $50,000 can boost your bottom line. Either use the Rate City term deposit calculator or check out the product table above.