6 month term deposits

1. 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 your pennies up to this amount are safe if anything unexpected happens to your ADI
2. 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
3. No work required, sit back and watch your funds grow
4. 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
5. No risks of seeing your funds decrease such as with investments in shares or property.

1. Be aware hefty penalties apply for withdrawing the funds before the six months is up
2. Lower interest rates than for a long-term deposit
3. You can't top up the funds until the term has matured

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

• 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.

• You don't need to be a mathematician to work out how much interest you will earn! Let the Mozo term deposit calculator do all the hard work.

• Withdrawal: By all means you can withdrawal your money when the term has ended and go out and spend up big!
• Rollover: Some banks offer the option to automatically rollover your investment with them for another term
• Reinvest: Grow your funds even further. The market may have changed since you first opened up the term deposit so shop around online and find a high interest rate and reinvest those savings. Check out the best term deposits here!

1. Name, address, phone number
2. Proof of identification e.g. driver's licence plus Medicare card
3. Your tax file number
4. BSB and account number of the bank account from where the funds will be transferred from
5. Details (if any, such as your partner) of any other people who will be noted on the Term Deposit.

Case Study:

Sadly for Mr Jones his great grandmother from Italy, who he's never met, has passed away. To the 30 year olds surprise, he has been fortunate enough to inherit a whopping $100,000! With mixed emotions he heads to the pub and shouts his mates a few rounds of drinks and over beers they discuss what he should do with his inheritance.

Being a sensible and conservative man when it comes to money, Mr Jones learns that the best place for this big wad of cash is a term deposit. He plans on popping the question to his girlfriend in the next few months so he knows a wedding is on the cards and they aren't cheap. If all goes to plan he'll need to access the money in six months.

Looking online Mr Jones learns that he can secure a high interest rate of 3.75% with a six month term deposit, therefore maximising his wealth before the 'big day'. When the deposit matures Mr Jones would have earned $1,875 in interest that can go towards a beautiful diamond ring.

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