Term deposits offer a convenient and risk-free way to earn high interest on your business’ savings. However, the interest rates on offer vary widely between providers, so it’s well worth comparing business term deposits to make sure you really are getting the best deal.
You can do this right here with Savvy. We help you compare a range of offers in detail and decide which deal is best for your business’ savings. Start comparing your options with Savvy today.
Disclaimer: Savvy is not advising or recommending any particular product to you. We provide general information on products for the purposes of comparison, but your personal situation or goals are not considered here. Although we try to make our comparisons as thorough as possible, we do not have information on all products on the market on our site.
You should always consult a given offer's PDS or further documentation in the process of deciding on which loan to choose, as well as seeking independent, professional advice. If you decide to apply with one of the lenders listed above via our website, you will not be dealing with Savvy; any applications or enquiries will be conducted directly with the lender offering that product.
A term deposit works by paying a pre-determined fixed interest rate in return for depositing a set sum of money for a limited period. Financial institutions offer different interest rates according to the length of time you’re prepared to deposit your funds. During the term of the deposit, those funds are locked away and you’re not able to access them.
While most financial institutions offer term deposits to standard customers, not all offer them to businesses (or offer term deposits to self-managed super funds). All institutions advertise their interest rates according to set terms, or lengths of time, ranging from one month to five years or more. The interest on offer is expressed as a percentage per annum and varies widely.
Business and SMSF deposits tend to have a slightly lower interest rate than retail interest rates, as they’re often designed for larger deposits, and usually have higher minimum balance requirements of up to $10,000 to $25,000 in some cases.
Savvy can quickly help you make these comparisons so you can work out which term deposit provider is the best one for your business needs.
These are the features to look at when comparing different term deposits for your business:
Both business term deposits and savings accounts have their pros and cons, and both options offer a secure place to park your savings.
The advantages of a term deposit include:
The advantages of a high-interest savings account are:
Disadvantages of term deposits include:
Disadvantages of savings accounts include: