5 reasons to consider a term deposit right now for your savings goals

Kickstart your savings for 2025 with a term deposit that offers a strong interest rate.

Building long-term wealth goes beyond having a standard savings account. Tools like term deposits can help you grow your funds over time.

1. Lock in an interest rate before the rates drop

The RBA looks likely to drop interest rates soon. That means savings rates will probably take a step down as well.

But with a term deposit, you can lock in a strong interest rate for a preset period.

At the moment, MyState Bank is offering a 5% p.a. rate on six-month term deposits.

Rates change regularly. So if you're looking to take advantage of this offer to grow your savings, you'll need to be quick.

The MyState Bank Term Deposit Calculator lets you see how much your wealth can grow during this period.

Set up a term deposit with MyState today

2. Guaranteed returns

Term deposits pay interest on a pre-agreed rate, with a guaranteed return.

Interest is paid on maturity. While you decide the overall amount you'd like to deposit, minimum amounts may be required to qualify for specific interest rates.

For example, MyState requires a minimum deposit of $5,000 for its current offer.

The interest rate you are offered is determined by a few factors, including:

• The national interest rate set by the RBA
• The length of term for the deposit
• The amount you're depositing

The provider also determines what rate to offer, with some giving better offers than others. It's important to shop around, to maximise your savings.

MyState Bank is currently offering a strong 5% p.a. rate.

Whatever the specific interest rate, you'll know in advance exactly how much you'll receive at the end of the term deposit period.

5% p.a. on a term deposit with MyState

3. Additional security compared to other investments

All investment carries risk – but not all risk is created equal!

In contrast to investments like crypto or shares, term deposits are considered a low-risk investment.

MyState term deposits of up to $250,000 are covered by the Australian Government Financial Claims Scheme.

So you don't need to go to a larger term deposit provider to ensure that your funds are covered; with MyState, you can still get individual service and the protection you want.

4. Removes the temptation to draw on funds

Term deposits – including those from MyState Bank – place strict conditions on withdrawing money.

There are usually some penalties and quite a bit of paperwork involved. You also have to provide up to 31 days' notice!

Now, obviously you want to be able to have funds in an emergency.

But if you're an "out-of-sight, out-of-mind" sort of saver, having some of these restrictions in place can be a handy way to minimise the chances of drawing on your funds.

5. Helps you hit short and long-term savings goals

Having a specific goal in place can be a great way to level up your saving skills.

This is one of the ways term deposits can be helpful.

For example, you might be looking to take a holiday by a certain date or buy new furniture for around your home.

Because you know how much your term deposit will pay at maturity, this can help you hit specific savings goals, and manage budgets and your future financial planning.

Set up a term deposit today

Learn more about hitting your saving goals with MyState term deposits

More information about MyState

T&Cs: Terms and conditions apply. Interest rate is current as of 05/02/2025 and subject to change. Minimum $5,000 deposit. Interest rate applies to one term only. 31 Days' notice required for early redemption and interest penalty applies. Consider relevant disclosure documentation and TMD at mystate.com.au. Fees and charges may apply. Products issued by MyState Bank Limited ABN 89 067 729 195 AFSL 240896.