Pensioners to benefit from decreased deeming rates
Last Sunday, the Federal Government announced it would be cutting ‘deeming rates’ from 1.75% to 1.00% for small assets for the first time since 2015.
The deeming rate is the rate of return pensioners receive from financial assets, which is determined by an ‘assumed’ income from these financial assets by the government.
Single pensioners with savings of up to $51,800 and couples with up to $86,200 in savings are set to benefit from this change.
With deeming rates being lowered to 1%, it now means that the revenue a pensioner receives from their assets are now assumed to be worth less than before, boosting their income payment by as much as $1,000 a year from September.
So if you’re now expecting a nice chunk of change to hit your bank account pretty soon, you might be tossing up ideas for what to do with it.
One option might be to stash it into a term deposit to earn a little extra change.
Similar to a savings account, a term deposit can give you a return on your deposit for a selected period of time. However, the difference is that you are not able to access the money once its deposited into your account until the term period ends.
So if you’ve never shopped around for a term deposit before, then you might not know where to start. Luckily, we’ve pulled together some hot term deposit offers to get you started. Check them out!
ANZ - Advance Notice Term Deposit
- Earn 2.15% on a four month term
- Earn 1.85% for a one year term
- Wide range of term options
Whether you’re looking to lock away your funds for five months or five years, the ANZ Advance Notice Term Deposit could be the pick for you. Savers looking to cash in on interest for a short time can receive as much as 2.15% in interest for a four month term. Keep in mind that you will need a minimum of $5,000 to open this term deposit and that if you wish to access your funds early, you’ll need to provide ANZ with 31 days notice.
UBank - Term Deposit
- 2019 Mozo Experts Choice Savings Bank of the Year
- Earn 2.05% on a range of terms
- Option to have interest paid to another bank
If you want to stash your savings away with a provider that knows a thing or two about saving, then why not consider the UBank Term Deposit. In 2019, UBank was crowned as the Mozo Experts Choice Savings Bank of the Year for its great value savings products. And its term deposit is no different, as you’ll be able to earn 2.05% in interest on a 3 month, 6 or 12 month term, making it a great option for all types of savers.
Want to compare more term deposit offers? Head on over to our term deposit comparison tool.
* Different interest rates apply to different amounts or different interest payment frequencies.
^See information about the Mozo Experts Choice Term Deposit Awards
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