Westpac Term Deposit

Westpac Bank has some very attractive specials on their term deposit account interest rates at the moment and they are also able to offer very competitive rates on their term deposits, especially if you have a significan’t investment to make. A term deposit is a safe investment and one with guaranteed returns and as such you may think the interest returns are low compared to other investment options. However, to make the security of your term deposit worth the investment you can invest a greater amount to ensure greater returns and that is exactly what Westpac is encouraging you to do.

How to Choose a Term Deposit Term

There are often significan’t penalties for accessing your term deposit funds before the end of the term so you need to think and plan carefully before you choose a term for your investment. When choosing an investment term, consider:

• Your current financial situation. How long can you afford to be without the amount invested in your term deposit account? Are you likely to need your investment amount to cover those monthly or quarterly expenses down the track or do you have sufficient emergency funds?
• Your future financial situation. You are investing for your future after all so think about your expenses down the track and whether you will need access to your funds in a year or two year’s time. If you are investing to save for a baby the funds would probably be best in 12 months time, but if you can cover the baby expenses and want to save for your child’s education then a longer term could benefit you and secure you a higher interest rate.
• Your investment aims. The reason you are investing will go a long way to determining the term of your investment. If the funds you have to invest are designated investment funds you are used to being without them and can invest for the longest term at the highest rate. However, if you are investing to reach a savings goal then you need to choose the term which best coincides with that goal purchase.
• Consider what interest rates will be at the end of your term. If you choose a five year term deposit with an interest rate of 7.00% that rate sounds good now. However, in five years time 7.00% may actually be quite low and it is possible you will lose money on your term deposit to inflation.

Choosing a Westpac Term Deposit Account

Westpac term deposit accounts are encouraging you to invest the highest amount you can to ensure you get the greatest return on your investment because if there are more funds invested, there are more funds which can be earning you more interest. Other features of a Westpac include:

• A minimum $5000 investment required. The interest rates you can earn on a Westpac term deposit are tiered and start at $5000 to an investment of $5 million.
• Interest is calculated monthly. This means that in term deposits opened for longer than one month you are able to benefit from compounding interest because you are earning interest on your interest from the previous month, and so on.
• Westpac term deposit accounts are fee free. There are no fees to open the account and you won’t be charged transaction fees to move your investment in, or out at the end of the term.
• Your returns can be paid by cheque, cash or direct transfer. Your interest earnings can either be paid to another Westpac account, or to any Australian bank account
• Interest payment options are dependent on the term and can affect the interest earned. On term deposits for less than 12 months interest is paid at maturity or can be paid monthly. On terms longer than 12 months you can have interest paid annually or monthly.

For more information about the Westpac term deposit account options available to you, use the Savings Account Finder™ comparison tableshere to find a term and investment amount which suits you. You can then follow our secure links to your chosen provider’s website to begin the application process today.