6 month term deposits

A six month term deposit is ideal for those who can afford to put their savings away for half a year and earn interest without having to do anything. 

When you put your money in a term deposit, you will already know the amount of interest you will be getting on your money. 

This means that you can sit back, relax and watch your funds grow without having to worry about losing money.

Who offers six month term deposits?

Most big banks and credit unions offer six month term deposits, but be sure to shop around for the best rate on the amount you are investing.

What kind of interest rate can I get with a six month term deposit?

Generally the longer the term you opt for, the higher the interest rate you'll get. That said, it is still possible to get a higher interest rate with a six month term. Check out our Term Deposits Interest Rates

information page, to keep on top of the latest term deposit rates.

Remember: When you are investing for only half of the year with a 4% p.a interest rate, you will earn 2% on your deposit. E.g. If Mrs Jones invests $10,000 in a six month term deposit with a 4% interest rate paid at maturity, she will earn $200.

Term Deposits v Savings Account

Features	Short-Term Deposits	Long-Term Deposits	Savings Account
Interest Rates	Fixed – lower rates than long term	Fixed – higher rates than short-term	Variable
Term	Three, six or twelve months	One to five years	Indefinite
Fees	No fees	No fees	Set up, monthly and or annual fees
Access	Can't access funds until term has matured	Can't access funds until term has matured	Withdraw money when you want

What are the advantages of six month term deposits?

• The Australian Government guarantees term deposits of up to $250,000 with Authorised Deposit-taking Institutions (ADIs) such as your bank, credit union or building society. So any money you put in a term deposit up to this amount is safe if anything unexpected happens to your ADI.
• - You can make realistic financial goals, as a fixed interest rate allows you to calculate exactly how much you will earn by the end of the six months. Plug some figures into the Mozo savings goal calculator to see for yourself
• No work required, sit back and watch your funds grow
• Ability to re-invest at the end of the term, so you don't miss out on a rise in interest rates unlike a long- term deposit
• It is a safe way to grow your savings as there is no risk of losing money unlike when you invest in shares or property.

Are there any disadvantages to a six month term deposit? 

• If your circumstances change and you have to withdraw your funds before your term deposit matures, you may have to pay an early withdrawal fee and you will not receive the interest
• - You will earn a lower interest rate on a six month term deposit compared with a longer term deposit 
• You can't top up the funds until the term has matured

When is interest paid on a TD?

It is important to discuss with your financial institution or credit union when interest will be paid on your six month term deposit. Interest can be paid monthly, quarterly, or on maturity. With a six month term deposit it is likely to be calculated monthly or at the end of the term.