Since your savings will be locked away for a fixed period of time when you opt for a term deposit, the first thing you have to ask yourself is, ‘how long do I want to put this money away for?’
The general rule is the longer the term, the better interest rate you’ll snag, and the St.George Term Deposit is no different. The highest interest rate on offer is 2.80%, when you stash your money away for 5 years. If you can’t commit to such a long period, then the one year rate is nothing to sneeze at, as it comes in at 2.40%.
With the St.George Term Deposit, you’re able to automatically rollover into a new term once the agreed period is over, or you can close the account at the end of the term. And you’ll be able to have all that interest paid into your St.George bank account or an account at another bank if you want.
The minimum amount of money you’ll need to open a St.George Term Deposit is $1000, and the maximum amount is $250,000.
Who it's good for:
While most term deposits are most effective the longer you stash your cash, the St.George Term Deposit also has a few great shorter term deals. So if you’re not sold on a long-haul commitment, it might be a good choice for you.
As with any term deposit, if you decide you want to withdraw your money before the maturity date, then the amount of interest you’ll earn will decrease significantly.
Another thing to remember is that if you allow your original deposit to automatically rollover into a new term, you may not get the same interest rate you had before - so be sure to check what deal you’re getting and make arrangements for when your term comes to an end.