Why term deposits aren’t just for boomers

If you’re not in the financial comparison game like we are here at Mozo, you may be unaware that it’s a lot harder to get a high interest rate on your savings account without some kind of ‘condition’ attached.

Now, don’t get us wrong. Sometimes those conditions are a great incentive to stick to your savings guns because if you don’t, you won’t earn extra interest, but other times they can be burdensome. 

A Retail Deposits Inquiry Report in 2023 by the Australian Competition and Consumer Commission (ACCC) actually found that 71% of bonus interest savings accounts did not receive bonus interest in any given month, which points to the complexity of how hard it can be to keep track of. 

And this is why a term deposit is worth considering if you want a hassle-free way to grow your savings.  

The idea that term deposits are “just for boomers” is outdated, says Peter Marshall, Mozo’s banking expert. He points out that many term deposits are less restrictive than high interest savings accounts, are easy to set up and manage 100% online and can be fine-tuned to meet your savings goals.

"One of the biggest added benefits of a term deposit is that you are guaranteed a fixed rate of return,” he said.

"The minimum investment depending on the provider is usually between $500-$5000 and there is flexibility to choose the  investment window that suits you best whether that’s 1 month or 5 years.”