Long term deposits paying 3.20%

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Today’s stingy term deposit market is forcing consumers to lock their money away for long terms if they want to maximise their returns.

For those looking to invest $5,000 for 12 months, ME Bank is offering one of the highest term deposit interest rates on the market, at 2.80 per cent (see table below).

That would earn you $140 of interest, leaving you with $5,140 at the end of the term.

If you were to lock that $5,000 away for three years instead of one, you could earn 3.00 per cent interest.

At the moment, The Mutual, Big Sky, Heritage Bank, QBank and ME Bank are all paying 3.00 per cent for three-year term deposits, which would leave you with $5,450.

Returns are slightly better for five-year term deposits, with Greater Bank paying 3.20 per cent.

At that rate, your $5,000 would turn into $5,800 at the end of the five-year term deposit.

$5,000 for 1 year

Lender Interest rate Final total
ME Bank 2.80% $5,140
People’s Choice Credit Union 2.70% $5,136.80
QBank 2.65% $5,132.50
Teachers Mutual Bank 2.65% $5,132.50
UniBank 2.65% $5,132.50

$5,000 for 3 years

Lender Interest rate Final total
The Mutual 3.00% $5,450
Big Sky 3.00% $5,450
Heritage Bank 3.00% $5,450
QBank 3.00% $5,450
ME Bank 3.00% $5,450

$5,000 for 5 years

Lender Interest rate Final total
Greater Bank 3.20% $5,800
Rabobank 3.15% $5,787.50
RaboDirect 3.15% $5,787.50
People’s Choice Credit Union 3.00% $5,750
Big Sky 3.00% $5,750

^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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