Hassle-free investment: With a long term deposit, you don't need to continue to meet any monthly deposit requirements like you do with a bonus savings account to achieve a specific interest rate. Interest is fixed: Even if the interest rate is reduced by the bank as a result in changes to funding or the cash rate, you'll continue to earn the fixed rate that was applied when you first opened the term deposit. With long term deposits, penalties are often in place for withdrawing your money early providing a good incentive to keep your money invested in the term deposit. Saving incentives: If your savings were in a regular savings account linked to a debit card, the temptation is always there to potentially dip into them to meet necessary expenses. Greater interest rates: Generally, longer terms offer higher interest rates. This means you can choose whether interest payments are made monthly, quarterly, annually or even in one lump sum at the end of your term.įee-free: Banks will not charge monthly account keeping fees for choosing them to lock away your savings over the long term.
Interest payment flexibility: While it may ultimately depend on the offerings available by the bank, long term term deposits will typically grant you control over when the interest payments are applied.
