Top Term Deposit

There is such a wide range and strong variety within term deposit products that the top term deposit is not one particular product, but the top term deposits are the products which embody the best features of the type of investment. It is also important that you feel secure in investing in a term deposit account and the top term deposits will guarantee your investments now, and after the government’s deposit scheme ends.

Features of the Top Term Deposits

To help you choose the term deposit account which is best for you, look for some or all of these top features as they can help you grow your investment by maximising your interest rate and making the investment process straightforward, and easy to understand:

The power of choice. The top term deposit accounts will offer you choices and flexibility before you fix your investment; you can often choose from a range of terms to find one which suits you and decide how often you would like your interest payments to be made during the term, if at all. In giving you these choices, you can feel in control, rather than like you are being controlled by a rigid investment and when you feel comfortable investing in a term deposit account, that provider becomes an attractive term deposit account holder and in turn a secure one, with loyal customers.
The top term deposits move with the times. This is about both embracing new technology and allowing it to make the investment process easier, and also about adopting new attitudes and more inclusive conditions for term deposit accounts. The top term deposit providers will not require that you reach a minimum balance before you can invest with them because they want to attract new customers and help those just starting out to grow their investment. The tops term deposits will also allow you to apply online to save you time and money, as well as include options to make your investment deposit by internet banking transfer or BPAY, you can even choose a term deposit account which notifies you visa SMS when your interest is calculated or paid, or when your investment is approaching maturity.
Security now and into the future. The Australian Government’s Deposit scheme ends in October of 2011 and since many term deposit providers offer terms which will exceed the guarantee, the top term deposits in Australia will show security even after the scheme ends. A secure term deposit account may be offered by an Australian financial institution with a strong credit rating, or one which is offering strong interest rates for long term investments to encourage their long term customers to stay on.

What the Government Guarantee Means for Term Deposits

The deposit scheme has the potential to undo all of the recovery the Australian economy has achieved since the Global Financial Crisis if Australian investors and savings customers pull their money back out of our banks before the end of the guarantee. Term deposits guarantee their rate of interest for their entire term, but does that guarantee mean anything if it’s not backed by the government?

Term deposit guarantees:

Terms of more than two years will not be covered by the deposit scheme. The government guarantee applies only to deposits in Australian financial institutions at the time the scheme is active, therefore even if you invest in a term deposit before October 2011, if your investment remains in a term deposit account after October 2011 and the financial institution cannot honour your deposit and interest at maturity, the government guarantee does not extend to the end of your term.
Choose the top term deposits using due diligence. While Australian deposits are guaranteed by the government there is no need for Australian investors or savings customers to give a thought to where their money is and where it is going because no matter which financial institution they choose, their deposit will be honoured by the government. However, with term deposits likely to be the first to notice the effects of the end of the deposit scheme, investors will once again have to start considering the top term deposit accounts according to the security of the term deposit provider, rather than looking just at the interest rate they offer.

To help you make comprehensive comparisons of the top term deposits and providers, use the Savings Account Finder™ comparison tables here. You can view the current promotions, interest rates and features of the top term deposit accounts in Australia, as well as follow our secure links to the providers’ websites to find out about their own guarantees for after the end of the deposit scheme, and compare each provider’s credit rating.