If you’re saving for a big event or a big purchase in 3 months, 6 months or even a year, a term deposit poses a fairly low risk way to stash funds away for a fixed period of time and earn interest. With Illawarra Credit Union’s term deposit you can even keep as little as $1,000 under lock and key for 8 months and earn 0.60% p.a. interest. Or if you’re looking for a longer, larger term deposit you can stash upwards of $50,000 away for 11 months and earn 0.55% interest.
Of course the main attraction of a term deposit is the ability to hide away a certain amount of funds for a fixed period of time with a fixed interest rate. So the main questions when investing in one will most likely be: what are the interest rates and how long can money be locked away?
If you’re looking to stow funds away for a shorter period of time (1-6 months), Illawarra Credit Union has rates of up to 0.25% interest. For slightly longer terms (7-12 months), the highest rate currently on offer is 0.60% for an 8 month term.
Applying for a term deposit shorter than 12 months should only take you about 10 minutes to do online (granted you’ll have to apply to become a member of the Illawarra Credit Union first, if you aren’t already one). To apply for term deposits longer than 12 months you will have to contact the credit union directly.
Illawarra Credit Union’s term deposit could be a good fit for you if you constantly find yourself dipping into your savings and you want to take away the temptation of spending those hard earned, extra dollars.
Releasing funds before the fixed term of the term deposit is up will incur a fee and you may not receive as much interest as you would if you waited for the term to end. You will also have to give 7 days notice to withdraw funds early. If you’re a Privilege Plus member you can avoid the $10 early withdrawal fee on the first early release of funds, but only when withdrawing up to 25% of the balance of your term deposit.
Different interest rates apply to different amounts or different interest payment frequencies.