6 Month Term Deposit Rates Compared

Investing in a six month term deposit is a great way to take advantage of the higher interest rates offered on longer investments, while still having access to your investment again before you really have the chance to miss it.

High Interest Term Deposit Account

Featured Term Deposit Rates

Term Deposit	1 Month	3 Month	4 Month	6 Month	12 Month	24 Month	36 Month	60 Month	Min Deposit
UBank Term Deposits (online)	3.36%	5.21%	5.21%	5.61%	5.41%				$1000
RaboDirect Term Deposit	4.00%	5.10%	5.10%	5.40%	5.45%	5.10%	5.30%	6.00%	$1000
St.George Term Deposit	2.55%	3.25%	5.05%	5.05%	5.05%	5.10%	5.20%	5.50%	$5000

6 Month Term Deposit Comparison

• A higher interest rate compared to shorter terms, and compared to high interest online savings accounts.
• Secure interest rate locked in for six months when you open the account.
• Guaranteed return no matter what.
• An enforced savings plan for short term goals.
• Access to your investment again after just six months.

Australian Banks With the Highest Six Month Term Deposit Interest Rates

Comparing the interest rates of six month term deposit options is a great place to start, but is not the only comparison you should make. However, to start you off, here are details of some of the highest six month term deposit interest rates available now.

Is a Six Month Term Deposit Right For You?

Six month term deposits do offer you great interest rates, and the benefit of having someone else take care of your investments, while you’re not tempted to spend them. However, make sure a six month term deposit is the best investment for you before you open the account.

A six month term deposit is best for:

• A short term savings goal you’ve just about reached. A term deposit account does not allow you to make additional deposits so if you are looking for a savings plan, then a term deposit will not suit your needs. Instead you may have already been using a high interest savings account to follow a savings plan and now you’re just about at your goal, this is where your savings have the potential to be spent on things which are not their intended purpose. Therefore, to remove all temptation to spend your savings on a goal which is still six months away, invest your hard earned savings in a term deposit to protect them, and to keep earning interest.
• Money you don’t want to spend. Might sound obvious; but perhaps your paren’ts have offered to lend you money for a house deposit, but you haven’t found the house yet. Or maybe you’ve changed jobs and received a severance package or had your long service leave paid out and you don’t want to fritter that money away before you decide what to do with it. Again, a six month term deposit is a great way to protect that money from being spent, and six months is plenty of time to decide what you’re going to do with it, but not so long that you get frustrated that you have to wait to access it.

A 6 month term deposit can sound like a long time, half a year! A lot can happen in half a year, but at the same time, six months can pass in a flash, so before you know it you will have access to your funds again, except they’ll have grown thanks to daily interest calculations. To help you decide whether a 6 month term deposit is right for your investment needs, find out how to compare your investment options, and ways you can use a six month term deposit account.

How to Compare 6 Month Term Deposit Rates

Almost all term deposit providers will offer the choice of a six month term deposit investment, therefore you have a lot of choices if this is the term you have found which best suits your needs. To make your comparisons of 6 month term deposit rates, consider:

• The highest rate for half a year. The interest rates advertised on six month term deposits are per annum rates, this means that over a full year you would have earned the full rate, but because you are investing for only half a year, you have only half the interest earning opportunities. While a term deposit rate is calculated daily, it is calculated on a 365 day formula, to reach the daily rate, so if you chose a six month term deposit with a 4.00% interest rate, remember you will only be earning 2.00% when you invest for half of the year. Therefore, make sure you choose the highest rate you can find for the amount you can afford to invest.
• The highest rate for the rising interest rate cycle. Official interest rates give the cue to the banks and financial institutions so they can calculate the rates they will offer on their financial products. With official rates rising and predicted to rise for the coming months, make sure the 6 month term deposit rate you choose is calculated to take in future interest rate rises so you don’t miss out by fixing your term deposit rate.
• The options which will benefit what you do next. Since a 6 month term is relatively short, you may choose to reinvest your term deposit amount at the end of your term to grow your investment further. Therefore, look at the term deposits which offer you a bonus interest rate to rollover your investment with them, or those which make it easy to roll over your investment automatically, or choose your rollover options during your term using internet banking.

Are You Suited to a Six Month Term Deposit?

While a six month term is short when you compare it to the five year terms on offer, it is still a significan’t investment period and you need to make sure you are suited to a six month term deposit so that you can reap the benefits. You might choose a 6 month term deposit rate if:

• You have a short term goal. If you are looking forward to a holiday or planning a renovation for six month’s time then it may seem like a long time to wait, however these are the perfect short term goals which can benefit from a six month term deposit rate. For example if you have already reached your holiday budget amount or saved the money you need for your renovation then you don’t want to spend it before you fly off, or before the weather turns friendlier for your home improvement project. A short term deposit account can keep your funds safe, keep them growing and have them available for you when you need them.
• You have budgeted for the term. Before you invest in a six month term deposit, project your budget forward six months to make sure your income and emergency fund will cover all of your expenses and any unexpected bills or costs. This is important because you need to be sure you won’t need access to your term deposit investment during your term because your 6 month term deposit rate can be severely reduced for early access.
• You want control over your funds again soon. A six month term will be over before you know it and this means you can benefit from earning a fixed interest rate, but also have the flexibility to choose another investment option at the end of your term, rollover your funds or use your new savings balance for another financial goal.