Term Deposit Rates - how to get the best deals

Term deposits are amongst the most secure and sound investment options available. Read on for some advice on how to get the best deal on a term deposit.

Term Deposits
A term deposit is a deposit held by a bank or financial institution for a fixed term. The terms are usually quite short and maturities range from a month to a few years. The money can only be withdrawn after the term has ended at maturity. Term deposits are a very safe investment and are almost risk free because they are guaranteed. Interest rates tend to be relatively high because your money is tied up and cannot be withdrawn.

How to get the best deal
The amount you are able to deposit and the term are important in getting the best deal on your term deposit. Both of these factors influence the interest you will be paid. The bigger the deposit and the longer the term then the more you will earn in the long run. It is also important to do your research on the term deposit market to get the best deal. Know the interest rates that are being offered by the major banks.

Shop around
The interest rates offered can differ considerably among the various banks and financial institutions. Because of this it is often worth shopping around to get the best deal. Get quotes from at least three separate term deposit providers and compare the rates they offer and the options available at maturity.