Updated on 06 Jan Does the government guarantee cover my term deposit? What affects the interest rate of a term deposit?
How to Earn Money by Saving Money How saving works — it's all about interest Most of the time, you have to work to get money.
Term deposit interest rates are fixed in advance, unlike variable rates, which can rise or fall over time. This means that you should still earn the same amount of interest on your term deposit, even if the economy means your bank is hiking or cutting its other interest rates.
Longer term deposits often have higher interest rates than shorter term deposits.
You may also be offered a higher interest rate if the term deposit has a higher minimum amount. You may be able to choose between receiving your interest earnings monthly, quarterly, half-yearly, annually or at maturity at the end of the term. Generally, the more frequently you want the interest paid, the lower the interest rate you may be offered on a term deposit.
Once your term deposit matures, if you choose to invest your funds for a new term, a different rate may apply. Comparing different term deposit offers may be helpful if you want to find the best option for your needs.
In fact, they may even pay you for leaving money in the bank, and you can also boost your earnings by using certificates of deposit CD and money market accounts. Unless you work with an online bankmost banks and credit unions also have physical locations staffed by employees. They also run call centers with extended customer service hours.
Where can I apply for a term deposit? Many banks will let you apply for a term deposit online.
Some banks, building societies and credit unions may not publish or advertise their interest rates for larger term deposits. To learn more, you may have to discuss this in person at a branch.
- By Jean Folger Updated Feb 27, Money that is considered savings is often put into an interest-earning account where the risk of losing your deposit is very low.
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Nick Bendel Property Personal Finance Writer A property and personal finance writer, Nick Bendel covers property, loans, credit cards, superannuation, and other bank products. Today's top term deposits.