Are you looking for a place to deposit your savings for the long term? You may be thinking that a ten-year term deposit might be the answer. Find out what Australian financial institutions have to offer in the way of long term deposits and investments and start comparing your options with Savvy today.
|Rabobank 1 Year Term Deposit|
Start with as little as $1,000 and get your interest paid monthly, quarterly, half-yearly or yearly. Receive a 0.10% loyalty bonus when you automatically reinvest your Term Deposit before maturityMore details
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No – term deposits are offered for various periods in Australia ranging from one month up to five years, but currently, there are no reputable financial institutions offering term deposits for more than five years. This is because interest rates change quite frequently and most banks won’t want to take the risk of trying to predict where they’ll be in ten years.
However, five-year term deposits are readily available from many financial institutions including major banks, building societies and credit unions. Since they involve allowing a financial institution to hold your money for such an extended period (often referred to as a 60-month term deposit), the interest rates on offer for five-year term deposits are generally the highest available amongst deposits.
If you do have a lump sum and are looking to invest it for an extended period such as ten years, there are other options available to you. These include:
Both types of accounts have their advantages and disadvantages, although term deposits in general offer a higher rate of interest than savings accounts do. The main advantages of term deposits are:
However, some of the primary drawbacks of investing in a long term deposit include:
Savings accounts have the advantage of enabling you to add additional funds into them as each payday rolls by and providing ongoing access to your funds at a moment’s notice if necessary. In addition, you don’t have to worry about a savings account running out, or forgetting to renew it, as they can remain open indefinitely, meaning they can help you store your savings for ten years or more.