Are you prepping for a big event or future security and pondering how to save money? Term deposits may just be the answer you are looking for. If you seek means to invest, save, and earn, term deposits may help target your financial objectives.
With term deposits, worry less and have a secured investment based on your preferences. Determine the amount, know the interest rate, and settle the cash-out and return date. Term deposits greatly help secure your savings, especially if you are more of a spender than a saver. By locking your money for an agreed period, the temptation of spending is out of the way.
Indeed, deciding where to store your savings, big or small, may be daunting. But if you are still weighing whether or not to have a term deposit, here’s an overview to help you decide.
A term deposit is an investment with an ensured return at a determined interest rate over a timeframe. You might also encounter the term Guaranteed Investment Certificates (CIGs). Both do have the same goals and objectives.
Term deposits may come into two categories: long-term and short-term. If you invest your money in less than a year, the interest earned is usually given after the term. In contrast, longer investments tend to transfer the earned interest into your account of choice, quarterly or annually.
If you want to start achieving your saving goals, check out term deposit rates by Great Southern Bank.
For further knowledge, here are some grounds why a term deposit might be the saving method you need:
Term deposits may offer higher interest rates than most transaction and savings accounts. Technically, the more savings you put in, or the longer the time you invest, the higher the interest can be.
Generally, term deposits have no service or set-up fees to start. Not unless you withdraw before the term ends.
Once you have decided to lock your savings away, not much work is necessary. With funds in a term deposit, you just have to wait for your savings to grow until the end of the term.
Term deposits have fixed rates, making your money safe even if the market interest rates change occasionally.
Below are some term deposit drawbacks you need to know:
One highlighted rule in a term deposit is your money being locked away. Not until the term ends are you unable to use the savings. If so, you have to pay the penalty.
Term deposit guarantees secured fixed rates. There is no chance of earning bonus interest, unlike with savings accounts.
Since term deposits have fixed rates and are safe from market drops, the same happens when marketing interest soars. No matter how high the interest rates rise, your term interest rates remain the same.
Whether a term deposit is, the best option depends on your situation and intention. But if you are considering bottling your money for future security, a term deposit may be a perfect choice.
Investments are great, but not without risk. The same goes for a term deposit. If you are looking for a guarantee, a term deposit can help, but with affiliated gambling. Assuring that you won’t need the resources within the period, a term deposit is undoubtedly one of the suitable options. If you need help recognizing which investment to take, better seek financial advice and wisely decide for your savings.
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