We all work hard and go without some luxuries to create our savings, but that doesn't mean that we need to leave our money sitting in a normal savings or transaction account earning low interest. Another option is to put your money into a Commonwealth bank fixed term deposit.
Benefits of a Commonwealth Fixed Term Deposit
Money that is deposited in a Commonwealth fixed term deposit will be earning interest for the term of your choosing and can even be used to create secondary or extra income. You can choose the length of your term. With terms ranging from a short as 30 days to as long as five years this means that a Commonwealth Bank fixed term deposit could fit into your timeframe and financial meets.
Term Deposit Rates
- A small minimum deposit. Because Commonwealth Bank only has a minimum deposit of $5,000 opening a term deposit is accessible to almost anybody. Only needing $5,000 means that you can start receiving a competitive interest rate that is offered on term investments without having to have a large deposit like $100,000 or more.
- Choice of interest payments. When you open a Commonwealth Bank term investment then you get the choice of having different ways to have your interest paid to you depending on what term and rate you choose. You can have interest paid or compounded every 28 days, six monthly, annually or at maturity. You can decide whether you'd like your interest returns as a supplement to your income, or whether you want them to compound further for a higher overall return. Plus you can manage your maturity options using Commonwealth Bank's internet banking system.
- You won't be tempted. You won’t be enticed to spend your hard earned savings on any impulse buying because the funds will be safely locked away in the bank.
- Guaranteed interest. When you open a new term deposit and select the term and rate you feel comfortable with and you lock in those details, this mean at the interest rate that you receive won't be a change during the term of the loan.
If you would like to open a Commonwealth Bank fixed term deposit then you will need to be at least 18 years old and have a minimum deposit of $5,000. Term deposits can be opened online by new customers that they will need to supply identification documents before they are able to withdraw from their term deposits. Because existing Commonwealth Bank customers already have their personal details on file and able to open a new term deposit via the Internet straightaway.
Fixed Interest Rates on Commonwealth Bank Term Deposits
Commonwealth Bank being one of the big four Australian banks often have special available with term deposit customers so it is always important to check and see what specials are available so that you are able to get the best interest rate. Commonwealth fixed term deposits for an investment of $50,000 with interest being paid annually:
- For a term of 12 months 3.20% per annum
- For a term of 36 months 3.95% per annum
- For a term of 60 months 4.20% per annum
Remember that it's important to feel comfortable with the term and interest rate of a term deposit you choose because your money won't be accessible until maturity. So to make sure that you're happy with a Commonwealth product you can compare it with term deposits are available from other Australian banks and financial institutions using the Savings Account Finder™ comparison table. After comparing the products and finding one that you're happy with you can follow the secure link to the term deposits provider's website and open your account at your leisure.