With investment amounts of $100,000 or more, a term deposit could be a good option while you decide what to do with your money. A term deposit offers a fixed rate of return, and is very low-risk. Balances up to $250,000 in a term deposit are protected by the Australian Government Guarantee Scheme.
If you have recently inherited a large amount of cash, have proceeds from a home sale with no new home to buy yet, or are an investor who is in between opportunities, a $100,000 term deposit provides a safe solution for holding onto your cash. This is also a good account to consider if you want to ensure that your retirement funds will be available for when you are ready to start spending them.
Some banks in Australia have added the option of notice term savers accounts, where instead of choosing a length of time for the deposit, you choose how much notice you need to provide before withdrawing the money. Depending on the institution, you may find that the interest rates are slightly lower, but this is worth considering if you want a little more flexibility.
Bonus savings accounts often offer higher interest rates than term deposits, but you'll need to be willing to meet a few ongoing monthly account conditions (such as a monthly deposit condition).
If you're happy to meet some ongoing requirements like making regular deposits, making a set number of purchases or limiting your withdrawals then you can get a higher rate with a bonus saver. But if you simply want an account you can 'set-and-forget' your deposit, a term deposit will be the way to go.
Take a look at Finder's savings account comparison to see how much interest you can earn with a bonus savings account instead of a term deposit. Remember to note the different monthly account conditions for each account in order to earn the maximum bonus rate. You can use the calculator above the table to change your initial deposit value and the term length.
Check out Finder's review of Judo Bank's Term Deposit for SMSFs.
Earn a competitive interest rate on terms between 1 month and 2 years with a Challenger term deposit.
If you struggle to save, you could benefit from a savings account that won’t allow you to withdraw funds.
When can you expect term deposit interest rates to increase? Find out in this handy guide.
They offer a fixed interest rate (so you don't need to worry about any market volatility) and your deposit up to $250,000 is protected by the government.
When your term deposit matures it's time to decide the next move for your money. Here are your options, including term deposit rollover (tdr).
Want to withdraw money from your term deposit before it matures? Penalties apply, so check out this guide to term deposit penalties and how they will affect you.
Australian Military Bank’s Investment Plus term deposit lets your money earn competitive interest. You can choose a term as per your liking.
If you trying to decide on the best time to invest in a term deposit, start here. See the past interest rates on term deposits from 1985 until now.
