Keen to make money on your savings quickly and risk free? A three month term deposit locks away your money for 90 days and earns you a nice bonus at the end through interest. So before you know it your investment will have grown and you'll have more money to your name. Just what you like to hear! Despite choosing to invest your money for a short period of time you can still earn a substantial amount of interest once you've shopped around online for a high fixed rate. While there's often competitive specials on short term deposits they still provide security and safety for your money.
Short v Long Term Deposit, the pros and cons
When it comes to term deposits, there are two main types, short and long-term. This refers to the duration you will invest your savings. One is no better than the other! It all comes down to your financial goals and aspirations as to which type of term deposit best suits you.
Short term deposit: A three month term deposit sits under this banner. You can also lock away your cash for as little as six or even twelve months.
- Pros: It matures quickly, then you can hunt around for another special on short-term deposits and re-invest to make even more money.
- Cons: A lower interest rate than longer term deposits
Long-term deposit: Keep your savings locked away for one to up to five years.
- Cons: You can't dip into the deposit until the term is up, patience is a virtue. Penalties apply for early withdrawals.
Interest rates on three month term deposits
As a three month term deposit is generally considered a 'short' term deposit, you probably won't get quite as high an interest rate as you might with a two or three year term deposit, for example. But, if you shop around, it is still possible to find a short term deposit with a decent rate. Head to Mozo's Term Deposits Interest Rates information page for more information on term deposit interest rates available right now.
Three Month Term Deposit v Savings Account
Three Month Term Deposit
No Fees (Penalties apply for early withdrawals)
Setup and ongoing or annual fees (will vary from bank to bank)
Can't touch funds until term has matured
Able to withdrawal money when you wish
Can't make additional payments to term deposits
Deposits can be made when you like