AMP Term Deposits

Term deposit accounts may seem like they are a set investment and you don’t have a lot of choice in how you manage your funds. Term deposits in fact have a number of variables which can change the interest rates you earn and the returns you can make, so it is important to choose a term deposit account which lets you make the choices which suit your investment style and financial needs. Therefore, a term deposit account with more variables can be a better option as you can more easily tailor your investment.

The options you can choose with an AMP term deposit account include:

• The opening balance. The minimum is $5,000 but you can choose any amount, and receive a higher interest rate accordingly.
• The frequency of your interest returns. You can choose your interest to be paid as an income, or at maturity.
• The term of your investment can be anywhere from one month to five years.
• What you do with your investment at the end of the term. An experienced AMP advisor will call you before the end of the term to discuss your options

Which Term Deposit Features Do You Need?

Now you know about all the choices you have with an AMP term deposit, you can decide which of the features you need, and see how your choices will affect your investment, as this will allow you to decide whether the options AMP offers for their term deposits best suit your needs.

AMP term deposit options:

• You will not be charged any fees on an AMP term deposit account. This means you don’t have to worry about calculating how much you will lose over the life of your investment and you don’t have to budget for these losses in your returns either. A fee free term deposit account is particularly important if you are choosing a longer deposit term, as there is more opportunity for your savings to be eaten up by fees, and a longer term investment needs to be able to beat the inflation rate, not be beaten back by bank fees.
• The interest rate which applies to the features you choose will be fixed for the term of your deposit. Unlike when you invest in a high interest savings account, the interest you will earn on your AMP term deposit account is fixed from the beginning of the term to the end. This means you will know from the moment your account is opened how much you can expect in returns and this allows you to plan for this money as an income, or decide on investment options for the end of the term.
• The amount you invest affects the interest rates your AMP term deposit is eligible for. The minimum balance for any AMP term deposit is $5,000.
• Interest rates on the amounts invested are tiered. Interest rates vary for amounts from $5,000 and under $25,000; higher rates are available on deposits from $25,000 and under $100,000; over $100,000 and under $500,000 calculates interest higher again; so too do investments over $500,000 to $1 million. Term deposit investments over $1 million can have a specialised interest rate negotiated with AMP.
• The period you invest for affects the interest rate you can earn. While your investment of between $25,000 and $100,000 can earn 5.30% on a 90 day term, invest for just six months and that rate jumps to 5.40%, invest in the maximum term of five years and your term deposit can be earning up to 5.50% interest.
• How often your returns are paid affects the interest rate paid on your deposit. The more regularly you opt to have your interest returns paid, the lower the interest rate you are able to earn. For example, to have your interest paid every month, your interest rate will be 0.20% less, to be paid every three months your rate will be 0.10% less, but choosing to have your returns paid every six months of your term will only sacrifice 0.05% of your interest earned.

How Your Term Deposit Interest Can Be Paid

If you have now chosen an investment amount and a term which suits you, you need to decide what you want to do with the interest earned from your AMP term deposit. Are you investing in a term deposit to boost your investment at the end of the term, or are you looking for an investment which will pay you a regular income?

AMP term deposit interest returns:

• Your interest can be paid into a chosen bank account. You can choose for your returns to be paid to your transaction account at the same time your wages are deposited to supplement your income, or you could choose for your interest earnings to be transferred to a dedicated high interest savings account where your ‚Äòcream’ can keep earning interest for you.
• If you prefer to receive a cheque payment, your interest returns can be posted out to you in this form.
• If you choose a term up to one year, your interest can be added to your principal investment at maturity and reinvested.
• At maturity you also have the choice to withdraw just part of your principal investment and reinvest the remainder for another term.
• If you choose a term deposit of one year or more, your returns can be paid monthly, quarterly, six monthly or yearly, in whatever form you choose.

If an AMP term deposit account sounds like an investment which would suit your needs, with both flexibility and choice, coupled with guaranteed returns and regular income, follow the Savings Account Finder™ secure links to AMP’s online application form, or to find out more about how easy it is to become a successful investor.

T & C
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