Tips for best term deposits given

Australians looking to find the best term deposit account to store their money have been offered advice on how to get a good deal for the long term.

According to the Annette Sampson from the Sydney Morning Herald, those willing to lock their money away for a year could get interest rates as high 6.5 per cent at MECU and Bank of Cyprus, or seven per cent for a three-year term.

However, it is still possible to get up to 5.76 per cent by using UBank’s 90-day term deposit offering, the expert advised.

It was recommended that consumers shop around to find the best interest rates before signing up to a good-looking deal, as there could be better options on the market.

"The banks are your new best friends if you’ve got money to deposit. They’ve discovered the hard way that getting money from people like you and me is a lot easier and cheaper than raising it on global wholesale markets," Ms Hampson said.

The Herald Sun recently reported that the big four banks – Westpac, NAB, ANZ and the Commonwealth Bank – have lowered interest rates on some of their fixed-term deposits, thereby reducing returns for savers.

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