Term Deposit Interest Rates Comparison

A term deposit interest rates comparison is unlike the comparison of many other financial products because the rates on offer can change so significan’tly, in such a short amount of time, that you have to be committed to making regular comparisons of rates during the time you are considering which investment option is right for you.

When to Make a Comparison of Term Deposit Interest Rates

As you make your comparisons of term deposit interest rates, you will find yourself coming back to the same providers and websites, looking for the same information, so make sure you have a fool proof system to save you time in your comparisons and look for all that information in one place, using the Savings Account finder term deposit comparison tables. You’ll need a fast and easy comparison system because you’ll need to compare term deposit interest rates:

• Once you have determined your needs. There is no point in making term deposit interest rate comparisons before you know which term and investment amount you are looking for as these are important variables which affect a term deposit rate. Therefore, make your first comparison once you have checked your budget and have a good idea of the investment term and amount you can afford. This will give you an idea of the rates you can expect for your circumstances, so you can spot promotions, and those too good to be true offers.
• After you have confirmed your investment choices. this could be anywhere up to two weeks after your first comparison and term deposit rates can change significan’tly in that time. In the time you were talking to your partner about your investment amounts or discussing your investment advice with your accountant the RBA could have moved on official interest rates, or a bank merger could have progressed.
• On the day you complete your application. This may have added another week to your term deposit comparison timeline, which can again alter the term deposit rates which can change on a daily basis. Therefore, before you complete the application form for the term deposit account you have chosen, make a final comparison of the term deposit rates offered on the day of the application, to make sure they are the same as those you compared previously.

How Often Should You Make Term Deposit Interest Rate Comparisons?

The frequency of comparisons you make on term deposit interest rates once your account is opened, depends on the choices you have made and the features you have on your term deposit account. For example, you should make term deposit interest rate comparisons:

• If interest returns are paid to you during your term. You can often choose to have your interest calculations paid monthly, quarterly, six monthly or annually on term deposits longer than 12 months and it can pay to stay in touch with interest rate movements when you receive your interest returns, so you can make informed decisions about what to do with those interest earnings, whether you will reinvest your returns, deposit them in a savings account, or wait for future rate rises.
• Two months before maturity. Making a comparison several months before maturity will again give you and idea of what to expect in terms of term deposit interest rates. It is also a good time to confirm the amount of your investment at maturity, so you can make accurate comparisons for your new investment amount.
• One month before maturity. This is a common cut off date for term deposit providers who will need to know whether you are going to rollover all or part of your term deposit investment. At this point you can compare the current rates of your current provider for your investment amount at maturity, as well as those of other providers. A month before maturity gives you time to contact your bank with your decision, and if you choose an alternative provider, your new provider may hold a term deposit interest rate you have chosen until your existing term deposit matures, so you don’t miss out on a great rate.

To help you find those great rates on the best term deposit accounts in Australia, view our comparison tables here. Whether you are making your first, second or third comparison, you can follow our secure links to the provider’s website to find out more, lock in a term deposit interest rate, or start an online application.

Taking the time for a term deposit rate comparison can not only save you time and money you would have spent in pursuing the wrong investment option, but when you make a term deposit interest rate comparison to find the very best deal, you are also making money because you are securing the best return on your savings investment.

Term Deposit Accounts

Before you make term deposit interest rate comparisons, you need to decide whether a term deposit investment account is the right financial product for you. To help you narrow down your choices of savings and investment options, consider the features of a high interest fixed rate term deposit, including:

• A guaranteed return on your investment. With a fixed interest rate on a term deposit account, you are also getting a fixed return. Since your investment funds will be earning the same interest rate every day of your term, and that amount will compound until maturity, or until you have chosen to have your interest paid, you can calculate the return your investment will make with complete accuracy.
• The security of investing with a bank. A term deposit investment is managed through a traditional bank account, and you deposit your investment amount into your term deposit bank account where it earns interest. You are not investing you savings in shares or even a managed fund, but you are leaving them safely in the care of your chosen bank so there is never the risk your funds will go down. In fact, it is quite the opposite because you are guaranteed your investment will go up, and if you choose a secure and stable Australian bank as your term deposit provider, you can be sure that guarantee will be honoured.
• No fees on your investment account ever. A term deposit account will be a fee free account from the moment it is opened. There will be no establishment fees, no ongoing monthly fees, no transaction fees and no commissions coming from your investment to pay a financial advisor. Instead, you are free to view, and manage any variables on your account, at any time using your internet banking log in details and you never have to worry about calculating the losses attributed to fees over the life of your term deposit because there are none.

How to Make a Term Deposit Interest Rate Comparison

If you think a term deposit account sounds like an investment option you could benefit from, and if you would welcome the security and the low maintenance features of a term deposit investment, then you need to start comparing term deposit interest rates to find the best one for you, and here is how you can start those comparisons:

• Use comparison tables to get the facts, figures and features. Comparison tables like the ones we compile here at Savings Account Finder™, collect all of the relevant information about the top term deposit accounts in Australia for an easy reference guide to help with your decisions. Information is laid out side by side regarding the minimum investment requirements, the choice of terms, the features and the conditions which apply to each term deposit interest rate.
• Read reviews to find out more about new features and unique choices. From our comparison tables you can click through to a comprehensive review of each term deposit product. This allows you to find out more about how the term deposit account operates, and you can take the time to consider options you may not have even heard of before, and weigh the benefits of those new options against your own investment needs.
• Always make term deposit comparisons in relation to your needs. While it is important to keep an open mind about new investment products and term deposit features and benefits, don’t get carried away by the excitement of a new product if it doesn’t suit your investment budget or timeline.

You can view our comparison tables and term deposit reviews here to start your term deposit interest rate comparisons. You can then click through a secure link to each provider’s website where you can find out more, or start an application using an online form now.

When you see term deposit rates compared online or in money magazines or finance columns, you may be struck by the differences in rates available, depending on the term, the investment amount and the provider. While it can be tempting to choose the term deposit account with the highest interest rate and worry about the conditions later, it pays to make a detailed term deposit comparison on a level playing field; here is why, and more importantly, how.

The Importance of Term Deposit Rates Comparisons

If you make the wrong choice of term deposit account you can find yourself locked into a fixed investment which doesn’t suit your needs, and can end up costing you money, not to mention time when you could have had your money invested in a more suitable term deposit account. Therefore, it is important to see how term deposit rates compare because term deposit interest rates:

• Affect your return and your investment. The interest rate on a term deposit is one of the features which most determines how much of a return you receive on your investment. The interest rate on a term deposit account is calculated daily and compounds depending on the interest payment schedule you have chosen. Therefore you need to make accurate term deposit rate comparisons to make sure you are earning the highest possible rate to ensure you get the highest return to meet your savings or financial goals.
• Must be high enough to beat inflation and future rate rises. Where a term deposit rate is fixed for the life of your chosen term, the official cash rate and the inflation rate are not. The cost of living is always going to increase over time, and the official interest rates will continue to follow their cycle regardless of your investment choices. That is why you need to compare term deposit rates to make sure they have been calculated to increase at a rate which beats the inflation rate over your chosen term so as not to decrease the value of your investment, and one which accounts for future rate rises, as can be expected in the upward swing of the current interest rate cycle, you don’t want to lock away your term deposit investment only to see the RBA raise their official rates above your own fixed term deposit rate.
• A fixed investment must enjoy a high interest rate from the start. A term deposit account is not an investment which you regularly manage and adjust to meet the changing economic movements and official interest rate adjustments. A term deposit account is set and fixed from the beginning, and that is why it is so important to compare term deposit rates to choose the best one from the start, because you often don’t have the option to upgrade to a better rate in the middle of your term, without incurring high fees or penalties.

Features of Note Where Term Deposit Rates Are Compared

While term deposit rate comparisons are important, they are not the sole feature to consider when choosing the best term deposit account. Instead, term deposit rates should be compared in relation to other important features and factors, including:

• Your investment term and deposit amount. As you peruse those term deposit comparisons in the paper or on your favourite finance website, consider the investment amounts and fixed terms required to achieve those interest rates advertised. Then consider whether the term and investment amount are achievable for your financial situation and current budget, and if they are not, don’t waste any more time in making comparisons of those advertised term deposit rates. Instead, look for the rates offered on the investment amount you can afford, and the term you can fix your investment for because these choices can change the term deposit rate significan’tly, and therefore alter the landscape of a term deposit comparison.
• The features of the interest rate. Some term deposit accounts will allow you to increase your interest rate during your term if your provider raises their rates, others will allow you to access your term deposit funds before maturity. However, in exchange for these interest rate features, you are often earning a lower interest rate overall, so compare whether having access to these features is worth subsidising your interest earnings.
• The reasons for comparative differences in interest rates. If you notice a significan’t difference in the interest rates offered on term deposit choices you are comparing, consider the reasons for those differences. For example, is a term deposit rate higher because of a special promotion, or higher because the bank is struggling and needs to attract deposits to bolster their strength?

To find out more about term deposit comparisons, view the Savings Account Finder™ comparison tables here where you can view details of the best features to make a comprehensive term deposit account comparison. Once you have chosen the term deposit account which best suits you, you are able to follow our secure links directly to the provider’s website and in most cases begin an online application today.

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