Love rate rises?
With rates on the rise, the world of deposits is becoming a much more interesting place.
Term deposits are back in vogue, with some really strong offers from RaboPlus aggressively leading the market. Similarly, savings accounts have enjoyed a hot period of competition making them a very attractive prospect for keen rate chasers.
So if you’re one of the lucky few who has a chunk of money saved up, it’s time get it into a term deposit or savings account. Now!
But which one?
There are two questions you need to consider: how long do you want to invest your money for, and do you need access to it?
If it’s short-term investment (under 6 months), a savings account is your best bet because most savings accounts have high introductory bonus rates – like the <#ING Direct Savings Maximiser#SavingsAccount#38#>
5.85% p.a. Any longer than that, go for a term deposit because rates will be better - like the <#RaboPlus Term Deposit#TermDeposit#12#> 6.56% for 1 year p.a. or 7.40% p.a. for 5 years
If you need access to your money, go with a savings account, unless you want to be stung by big fees on your TD. Basically you trade flexibility for a better interest rate.
Choose a Term Deposit because:
- Your money is locked away. Want a new TV? Well you can’t have it. Yet.
- Interest rates are high, and get higher the longer you lock your money away.
- You choose the term: from 30 days to 5 years, the choice is yours!
- Top Picks: <#RaboPlus Term Deposit#TermDeposit#12#>. <#NAB Long-Term Deposit#TermDeposit#119#>
Choose a Savings Account because:
- You have access to your money, very easy to set up online
- If interest rates go up – like they did last week – account rates should go up (eventually)
- Very strong introductory rates (almost 6% at the moment)
- Top Picks: <#ING Direct Savings Maximiser#SavingsAccount#38#>, <#Citibank Online Saver#SavingsAccount#136#>