If you’re looking to put your money away for the long term, a high interest earning 5 year term deposit might be a good choice for you. As a cash investment, term deposits are a useful addition to balance risk and diversify your portfolio or keep money for your children’s education but just beware of putting all your eggs in one basket.Read more
Term deposits are a safe investment option if you’ve got a lump sum of money that you can put away for a set period of time and let the interest pile up. There are many benefits of a term deposit over other forms of investments such as knowing exactly how much your return will be. With a term deposit you will lock in the interest rate for the duration of the whole term, so if you’re investing for the long term, like 5 years, you’ll want to make sure that you are getting a good return on that money, not only today but in 5 years time.
Term deposits are considered to be a safe investment option and when you are comparing your options you want to make sure that your investment will be safe. All of the term deposit providers that are listed on Mozo are covered under the Australian Government’s Deposit Guarantee which guarantees deposits of up to $250,000.
You’ll want the best return on your money, so when you are comparing term deposits the interest rate that’s going to be offered should be a big factor in your decision. With Mozo’s comparison table below you can compare side by side the interest rate of different term deposit providers so that you can find one that suits you best.
Of course, banks will have different rates depending on the length that you want to invest your money for. If you want to see what rates are offered for different terms other than 5 years, check out our term deposit hub.
Isn’t that a million dollar question? Term deposits are certainly a good place to stash your cash but higher returns (and more tax effective investments) may be available in property, shares and managed funds or a number of other asset classes. If you’re talking about large sums it may be worth speaking to a financial planner about diversifying your portfolio.
^See information about the Mozo Experts Choice Awards for Term Deposits