Looking for a safe and secure way to save your money? A term deposit account may just be the perfect option for you!
By opening a term deposit account, not only can you safely secure your money, you can also gain interest bigger than those of traditional savings accounts.
Here are three reasons why it pays to open a term deposit account:
Term deposit accounts offer a guaranteed rate of return.
No if’s or but’s!
You get the interest based on the interest rate stated when you open your account. This way, you know exactly how much you will receive on your investment, regardless of changes in the market or interest rates.
This feature of term deposits makes them a popular option for conservative investors or people looking to gain money passively. The fixed rate of return allows investors to plan and budget their future financial needs with confidence, knowing that their investment will generate a predictable return over the term of the deposit.
Depositing a large amount of money at any given time, on any platform, is a big move. Luckily, term deposits in Australia are insured by the Australian government through the Australian Prudential Regulation Authority (APRA). APRA is the government body responsible for overseeing the stability of the financial sector in Australia and protecting depositors’ funds.
The deposit insurance scheme covers eligible depositors up to a limit of AUD 250,000 per depositor per ADI. The deposit insurance scheme is free and automatic for eligible depositors, meaning that depositors do not need to apply for coverage.
With fixed terms, investors know exactly how long their money will be tied up and can plan their finances accordingly. Terms range from 3 months to 5 years and you have the option to keep your money there for a longer period of time.
Some banks even offer a loyalty bonus if you roll over your term deposit into a new one.
This structure helps investors make informed decisions about their investments and gives them a clear sense of their financial obligations. The longer you keep your money there, the higher the interest rate.
Having a fixed term also helps investors avoid the potential losses that can occur with volatile investments. Overall, fixed terms in term deposits offer stability, certainty, and a predictable return on investment.
Term deposit accounts offer a range of benefits, including safety of funds, fixed rate of return, and the ability to plan ahead with confidence. These features make term deposits an attractive option for investors looking for a low-risk investment with predictable returns.
If you’re looking for a safe and secure way to invest your money and grow your wealth, consider opening a term deposit account today.