A term deposit is one of the easiest and safest ways to invest your savings. Simply nominate an amount of money and how long you'd like to lock it away for and by the end of that period a nice stack of interest will be waiting for you. But do you have to pay tax on that interest? And if so, when does it have to be paid? If you've been thinking about signing up for a term deposit, we've answered some commonly asked questions.
For anyone who’s looking to grow their savings, term deposits can be a risk-free and reliable option. Nominate an amount of money and how long you’d like to lock it away, and a nice little stack of interest will be waiting for you once that time is up.
If you’re considering a term deposit as a savings strategy, you’re probably most concerned with how much interest you’ll be able to squeeze out of your rainy day fund. And that depends largely on what interest rate you manage to snag.
You’ve done the hard work of saving and squirrelling away every spare dollar, decided a term deposit is the best place to park your money and now you can kick back and forget about it, right? Wrong!
Are you a serial monogamist? Don’t have a problem going in for the long haul and making a serious commitment? Well then, apply that to your savings strategy with a long term deposit, for a low-risk way to earn a return on your rainy day fund.
One of the great things about a term deposit is that it’s not only a low risk way to earn a return on your savings, but also a pretty low maintenance one. That doesn’t mean there aren’t some great tricks to making your term deposit work harder for your money - but it does mean that opening a term deposit is a pretty stress-free process.
Are you sitting on the fence about investing in a term deposit?
So you’ve decided a term deposit is the best place for that nice Christmas bonus, or the nest egg you’ve been working on, but now the question is, where do you go to get one? The answer might seem easy - the bank, of course - but there are heaps of options when it comes to choosing where you want to open a term deposit.
If you’ve picked a term deposit to be your savings strategy, then the next big question is: how long do you want to lock your hard earned cash away?
If you want to commit your money to a term deposit but you’re not quite ready to lock it away for the next few years, then a short term deposit might just be the solution you’re looking for. It's still low-risk and a stable way of earning a return on your savings, but without the commitment of not touching your funds for years on end.
Are you looking for a place to stash your cash that will earn you high returns and protect you against rate movements in the market? Then a term deposit could be just for you!
So you’ve decided to lock your funds away in a term deposit to grow. Good for you! By this point, you probably already know what a term deposit is: a stable, long-term savings strategy that can help you maximise the size of your rainy day fund with minimal effort on your part.
Here are some tips from the mozo team for getting the best value from your term deposit
It's a question asked by savers of all sorts: should I stash my cash in a term deposit or savings account?
Before you make the decision that a term deposit is for you, it’s worth comparing not only the interest rates and deals on offer, but also the type of term deposits available, so you can find one to suit your budget and lifestyle.
Stay tuned for updates and exclusives from the front line of the term deposit war.
Over the last few months, more than a few term deposit providers have been increasing rates. In October alone Mozo’s research team counted 51 interest rate increases from 10 term deposit providers tracked in our database.**
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As we head into October, the news for Australia’s savers is that term deposit interest rates continue to remain steady, though we are starting to see some movement and competition for some shorter terms.
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They’re one of the newest kids on the block in the world of Australian term deposits, but Judo Bank certainly aren’t content with just blending in.
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There is little chance that term deposit interest rates will change dramatically in September. Mozo has counted less and less term deposit rate cuts in the past few months.
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