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 5 months and earn 1.15% p.a. interest. Or if you’re looking for a longer, larger term deposit you can stash upwards of $50,000 away for 12 months and earn 1.05% 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?
Well the good news is if you’re looking to stow funds away for a shorter period of time, then Illawarra Credit Union has some fairly competitive rates. For term deposits from 1-6 months you could be earning upwards of 1.00% interest on balances of $25,000.
So if you’re planning to purchase a car in a few months time, or you want to boost your savings to put down a deposit on your first home, then this term deposit could be an option for you.
Or if you’re looking to put aside a more modest amount, say of $1,000-$3,000 for 5 months, you'll earn a decent 1.15%.
Applying for a term deposit of 1 year or less 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 1 year you will have to contact the credit union directly.
When it comes to how you receive your interest, you can choose to either have it paid to you monthly or on maturity, when the fixed term of the term deposit comes to an end. So if you fancy having a tidy sum of interest paid to you once a month to ease your bill payments or to put towards your groceries, you could opt to have the interest paid into your account every month.
Or if you’d rather let your interest build up with your savings and collect the neat interest gained with the rest of your funds when your term deposit ends, you can choose to have it paid to you when the term deposit matures. It should also be noted that the amount of interest you receive may vary, depending on whether you choose to receive it monthly or on maturity.
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. It’s also worth checking out if you’re a short term saver and you want to take advantage of this particular term deposit’s above average interest rates.
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.
Yesup to $250,000
Yesup to $250,000