Terms between 3 months and 5 years
$1000 minimum deposit
0.10% p.a. loyalty bonus when you roll over your term deposit
A long term deposit rate can be anywhere from 12 months to five years. This means you'd need to lock your deposit away for this length of time, and you'll earn a fixed interest rate on your investment that will be locked in too. Longer term deposit lengths often offer more competitive rates than terms of less than 12 months, but it could also be more of an inconvenience to lock your money away for more time. It could be a good option for you if you know you won't need to money in the short term.
A long term deposit may be right for you if:
There are things you should avoid to ensure you are getting the most benefit from your long term deposit account.
Your first decision when comparing term deposit accounts is to decide how long you want the term to be. Generally the longer the term, the better the interest rate will be, however this isn't always the case. Once you have an idea of how long you need to meet your savings goal, you should begin comparing available term deposits between the different banks, asking the following questions:
Long term deposits can offer a range of different methods for receiving your interest, ranging from monthly, quarterly or yearly. Some accounts only pay interest when the account reaches maturity, however if this is the case, you'll lose the benefit of compound interest.
You should be able to find a number of banks that charge minimal to no fees for their term deposit products. You should carefully research these fees before making your decision, and try to avoid any lenders that charge for early withdrawals (you never know if you will need to withdraw the money in an emergency situation).
This is arguably the most important feature, and one that can differ dramatically between different lenders. Be sure that you are choosing an account with a competitive interest rate by market standards, as this will make a significant difference to your balance over a few years.
Unlike a savings account, you cannot open a term deposit with only a few hundred dollars. At minimum, you will find accounts that allow an initial deposit of $1,000, but most will expect more. Make sure you're comfortable with the amount required, and that you leave enough money available in your savings account for living expenses and emergencies.
If you're looking for a standing desk for the home office, the Omnidesk Ascent is our #1 choice for 2023.
It's time to sort out your NBN plan for the new year.
Invest in an index fund instead of actively trading stocks and you not only save on time and fees, you could be earning more in returns too.
SPONSORED: Upgrade your internet before the end of 2023 and get ahead on your life admin! We take a look at some of the benefits of a faster internet connection.
Young Australians cite overspending as the main reason for not reaching their financial goals.
What you need to know about investing in Shein from Australia.
Your guide to currency exchange in Brisbane, including how to get the best exchange rate.
Addressing speculation that interest rates might fall in late-2024, ANZ CEO Shayne Elliott said he thought it was too optimistic.