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!