The unusual term deposit special you need to know about
Article by Ceyda Erem
Everyone with a term deposit knows that once you deposit your cash, it’s hands-off until the term period ends.
However, Coastline Credit Union has introduced a new term deposit that’s set to break the rules.
The Flexi Term Deposit is not like a regular term deposit that asks you to lock away your money, as depositors who opt for the 8 month special are able to withdraw 50% of their balance after the first 4 months without facing a penalty.
“With a rate of 2.75%, the Flexi Term Deposit is currently the second best rate for that term in the Mozo database after AMP,” said Mozo Product Data Manager, Peter Marshall.
The Flexi Term Deposit has no monthly account service fee and accepts deposits starting from $5,000 with interest paid at the maturity date.
So if you’re an Aussie looking to take advantage of the Flexi Term Deposit you’ll need to be quick, as this 8 month special offer is only available for a limited time.
TD rates vs stagnant SA rates
Mozo recently reported that the number of term deposit rates is on the rise, with the Mozo database indicating that there were more than 10 times the numbers of rate increases in June compared to rate decreases.
So to help Australians get the most bang for their buck, we thought it would be worth comparing the Flexi Term Deposit 8 month special with a savings account with an ongoing rate and no conditions.
While both have benefits and drawbacks, they are still two great ways Aussies can receive a sweet return on their deposit.
Say you wanted to invest $10,000 in the Flexi Term Deposit rate of 2.75% for 8 months, at the end of the period, you would earn $183 in interest. A savings account with an ongoing rate of 2.20% would see you earn $74 in interest - a difference of $109.
But according to Marshall, it’s not the return that might entice depositors, but the easy access the Flexi Term Deposit comes with.
“Having the option to withdraw 50% of your balance can really put a depositors mind at ease if something unexpected comes up. You rarely get a term deposit with that kind of flexibility.”
But if you’d like to compare more options, you can check out our term deposit comparison tool for terms between 1 month and 5 years.