Looking for the right savings account can be difficult, with so much choice from providers, and a range of accounts each offering different rates and different terms.
If you are in a position that allows you to lock your savings away for a fixed period of time while making no withdrawals, then you should consider a
term deposit account.
Most term deposits do require a minimum opening balance of between $5,000 and $10,000, so you need to be sure that you can afford to cut access to these funds for the agreed term.
Term deposits allow you to fix a high rate for an agreed period of time in exchange for leaving having no access to funds until the account matures. This can be an extremely effective way of saving, as not only are you benefiting from better interest rates than those offered on instant access savings accounts, but you are also leaving your funds to grow thus eliminating the temptation to withdraw against them.
The savings market is heating up in Australia, and you can now choose from a long list of term deposits, each offering a selection of terms and rates, helping you to find an account that suits your savings needs.
Suncorp recently increased the rate on its 3 year term deposit from 6.75% to 6.85%. The
Suncorp term deposit can be opened with a minimum of $10,000 and interest is paid annually.
If 3 years seems to long for you, Suncorp also offer a 1 year term deposit paying 5.55% on deposits of $10,000 and up. Alternatively, other providers such as RaboPlus provide accounts with terms as short as 1 month, so there really is something to suit everybody.
On the other hand, if $10,000 sounds like a lot to lock away, you may wish to consider looking at
RaboPlus Term Deposits, with accounts requiring opening balances as low as $1,000, although the rates offered tend to fall slightly in this case.
Written by Sam Gooch
