
Get exclusive money-saving offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
With investment amounts of $100,000 or more, you may find that the fixed rate of high interest fosters growth with minimal risk. You should keep in mind that only balances up to $250,000 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 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).
Let's take a look at the UBank Term Deposit and the UBank USave bonus saver account as an example. The UBank USave has a monthly deposit requirement of $200. So, if you wanted to invest $100,000, you could open the account with $97,400 and then use the remaining $2600 to meet the monthly deposit condition. You can see from the table below that with a little bit more effort, this option actually results in a lot more interest earned over 12 months.
UBank Term Deposit | UBank USave | |
---|---|---|
Initial investment | $100,000 | $97,400 |
Term lentgth | 12 months | 12 months |
Interest p.a.* | 0.55% p.a. | 1.1% |
Monthly deposit | $0 | $200 |
Total invested over 12 months | $100,000 | $100,000 |
Interest earned over 12 months | $2,050 | $2,400.13 |
*Interest rates current as of June 2019 and are subject to change.
Take a look at the comparison table below 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.
Q. How are penalties calculated for an early withdrawal on a term deposit of $100,000?
A. The financial institution will generally charge an administration fee, which will vary as well as adjust the interest payments. For example, if you initially chose a term of five years but need to withdraw after three, the interest rate will be changed to the lower three year rate.
Q. Can this type of account be used for my SMSF?
A. Yes, so long as it meets the terms of your SMSF, you can use a term deposit to help accelerate its growth. Learn more about SMSFs.
Q. Will my retirement savings be safe in a $100,000 term deposit?
A. A term deposit is a good investment for retirement savings, although keep in mind that at any amount over $250,000, you will not be protected by the Australian Government Guarantee Scheme. For more information you can read our guide on how much you need to retire comfortably in Australia.
Q. I want to deposit more than $100,000 in my term deposit. Which accounts will give me the best returns?
A. Read our guide on $250,000 term deposits which includes accounts that provide the best returns for deposits over $250,000.
While the stock market continues to fall and recession fears ramp up, we're seeing term deposit rates increase for the first time in years.
Read more…SPONSORED: It's great to set yourself some fitness, health, travel or career goals, but don't forget about your finances.
Read more…SPONSORED: There are plenty of ways to maximise your term deposit rate and get yourself a better return, even in this low-rate environment. Â
Read more…Our experts crunch the numbers to help you work out the best place to park your money: is it your mortgage or your super fund?
$100,000 life insurance policies can be very affordable. Compare costs and cover here.
Compare $500,000 life insurance policies, costs and cover here.
The ANZ Rewards Platinum Credit Card offers a competitive rewards program, $0 annual fee for the first year, a $500 gift card, a balance transfer offer and a range of complimentary insurance covers.
The Ford Mustang offers a good amount of value for money when you consider that the direct competitors are produced by luxury brands and cost closer to $100,000.
Many mortgage holders don't realise they could save thousands more, with several lenders slashing rates further than the official cut.
With the official cash rate cut to a historic low 0.10%, you'll need to shop around if you want to earn a good interest rate on your savings.
While COVID-19 has delivered a number of economic challenges, there is one area where Australians have benefits – with investment loans now cheaper than they've ever been.
Read Finder's guide to understanding principal and interest home loans.