As Australians, we are always looking for opportunities to increase our wealth and we just don’t want to put our savings into an account that isn’t going to generate any interest at all or very little. It can be very difficult trying to figure out all of the different types of accounts that you get from banks or building societies and so it can really drive up your stress and anxiety levels. We want to know that our money is safe and that it is not at risk at any time and so this is why many Australians decide to invest their hard-earned cash into some kind of term deposit.
The good news for you is that you can currently take advantage of high-rate term deposit accounts that offer you a specified interest rate that will remain the same over the period of time that you decide to pick. Term deposits come in one year, three year and five year options and so you can be guaranteed the rate of interest that you’re going to receive even if interest rates go down. This means that you have both short-term and long-term options here that offer you pretty good returns and the bare minimum of risk.
If you’re not sure if this is the right investment for your money then maybe the following benefits of taking out a term deposit can help you to make a smarter financial decision.
- It’s a safe investment – These particular deposits guarantee you a certain return and so you won’t be worrying if your investment is going to provide you with any money at all. You can either, deposit a lump sum of money in the account and watch it grow over the agreed time period or you can set up a direct debit and invest a fixed amount into the account on an ongoing basis.
- Different interest rate payout times – These term deposit accounts can pay you interest in a number of different ways and so you can get your money paid into your account monthly or annually or at the time of maturity. This means it you know that there is definitely money coming to you in the future and so you can stick about what you want to spend this money on.
- There will be no volatility – This is in relation to the interest rate that you will receive and even if market interest rates go down dramatically, you will still get paid out on the interest rate that was promised when you opened the term deposit account in the first place. This particular type of account is perfect if you are in your retirement years because it is an extra source of income.
Hopefully, these three reasons have encouraged you to start looking into term deposits a little bit more and particularly the ones that offer a high rate of interest. They are not complicated and quite easy to understand but if you need to learn more, talk to your local lender.