Term deposit features

Term deposits have a small range of bells and whistles, as well as the dreaded fees and charges. Read on, savvy saver, for deets...

• Term deposit interest payment options. This refers to the period of your payments: fortnightly, monthly, quarterly, or annually. Sadly, the banks were clever enough to change the headline interest rate according to the payment period, so you can't sneak in a better deal by choosing a shorter timeframe. It's more a question of when you'd like to see the interest clocking up.
• Term deposit interest payment method. Not the most exciting options in the world... Typically, you're looking at direct credit or possibly cheque. Alternatively, you can opt for a rollover account to reinvest your pile.
• Deposit interest paid to another bank. When your current bank has a dismal term deposit interest rate, you'll be looking elsewhere for a savings interest deal. Make sure the new bank will pay interest into your nominated account (as quite a few institutions don't care to share).
• Minimum / Maximum balance. Pretty much what it sounds like, this one. The balance limits are detailed at our term deposits comparison table (just hit Go!).

Term deposit fees and penalties

Term deposits should be free of annual fees and the like. The only thing you're going to come up against here is the Early Withdrawal Penalty. Some accounts allow a partial withdrawal of your term deposit; others require a full withdrawal. In either case, the banks can charge:

• Reduced interest on your deposit
• Term deposit fees

All your hard work and spendlessness can be eaten up by one greedy withdrawal penalty - so this is a last resort!