A short term deposit can help you to maximise the interest you earn on your savings, but still allow you to access your funds after a short period. If you’re looking for the best place to store your savings in the short-term, it’s easy to find and compare the best deposit options all in one place with Savvy. We provide you with the tools to find the best short-term deals for your savings more easily. Start comparing a range of offers with Savvy today.
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Term deposits are an agreement between an investor and a financial institution to leave funds in a deposit account for a set period in return for a fixed rate of interest. Short term deposits are classified as deposits 12 months and under.
Once you’ve agreed to the term of your deposit and lodged your funds, you can’t access your money until the agreed term is finished without incurring a penalty. In return for offering certainty about how long your money will be locked away, you’ll receive a fixed interest rate.
Term deposits are offered by many financial institutions in 30-day blocks of time, with a different interest rate depending on the length and size of the deposit. For example, a bank’s rate for a three-month (or 90-day) term deposit may be 1.30% p.a., whereas they may offer 2.50% p.a. if you agree to deposit your funds for six months. The larger the amount of money you have to deposit and the longer you’re prepared to lock your money up, the better the rate you’ll be offered.
For this reason, it’s important to compare term deposits with Savvy before deciding where to stash your cash. Check back in with Savvy every time you have a new investment decision to make, as this way you’ll stay up to date with the latest interest rates and offers available.
Short term deposits are useful for anyone who has savings and wants to earn interest on their nest-egg. As long as you don’t need to use your money for other purposes for a set period, you can take out a term deposit for as long or as short a period as suits your lifestyle.
This type of investment may suit people in any of the following circumstances:
In any of these circumstances and more, a term deposit could be the best answer to your short-term financial needs.
There are a few factors to take into consideration when choosing which financial institution to leave your funds with. These are: