subject: Term Deposits - Perfect For Long Term Saving [print this page] Why a Term Deposit? Why a Term Deposit?
This type of savings account tends to be a more long term option in comparison to that of a regular bank account.
Theyre locked for the time period you nominate: from one month to five years, you can choose how long your money cannot be accessed (by yourself or anyone else on the account)
The minimum opening balance for many term deposits is just $1000
Interest rates are calculated daily on the full balance of your account
There are no confusing statements - a confirmation certificate is issued when a term deposit is opened, the time period is completed or renewed
Most banks now offer phone and internet banking to review term deposit information
You can know exactly what return you will receive on your investment
Who Does a Term Deposit Suit?
This type of investment account is perfect for those wanting to save up for a big purchase such as property, a motor vehicle, renovations, or just a nice holiday. Another great reason people tend to choose a term deposit is because they already have a decent amount of money sitting in a savings account, yet they are not earning the best possible interest rate and do not need the money any time in the near future.
For families, term deposits are becoming increasingly popular. Parents will often open an account when their children start high school so that by the time they graduate, the term deposit has matured and there are enough funds to pay for university (and sometimes a little bit extra for Mum and Dad).
If a term deposit sounds right up your alley, be sure to research banking institutions thoroughly before locking away your funds. While your bank may already have these types of accounts available, there are many other competitors that promote fantastic special offers, should you be depositing a certain amount of money over a longer period of time.
Interest rates on the special offers can be as high as 7.25%, which can mean exceptional returns, should you have a sizeable amount of money to put into the account.
