term deposits 


term deposit rates


A term deposit is a lock in agreement with penalties attached. If you choose to exit early banks will typically withhold all interest that has not yet been paid as part of your regular installments. An exit or cancellation fee may also be charged before you are happily reunited with your hard earned cash.

Before deciding on an investment term makes sure that you've planned ahead and you won't need to withdraw the money before the term deposit expires. Think long and hard about the chance of needing your funds for events that could reasonably happen but are not yet in site. Reasons you may need to break a term deposit early include holidays, weddings, a house deposit, a new car or simply needing the cash on hand in the event you are retrenched.

Of course, all these possibilities should be balanced against the positives of investing for a longer term:
  • rates for longer term deposits are currently very favorable, in some cases in the vicinity of  6.00% for 6 months
  • longer term deposits require less maintenance and minimise the fuss associated with  frequently having to make decisions with your money
Of course, the longer your term deposit,  the longer you are tied to the rate. If committing to a long term deposit be certain you have shopped around and secured the very best term deposit rate.