Term: Check the length of the terms on offer.

These factors could potentially have a big impact over time on the outcome of your investment. Also check when interest is paid (usually monthly, annually or at maturity).

Interest rate: Check what interest rates are on offer and how they differ by term and investment amount.

When comparing term deposits, you may want to consider factors such as:

But when it comes to term deposits, smaller providers tend to offer many of the same benefits as the big four.įor example, money deposited into banks, building societies and credit unions (known as authorised deposit-taking institutions or ADIs) is protected by a Australian Government guarantee of up to $250,000 per account-holder, per ADI.īefore deciding on a term deposit, it could be a good idea to research your options and compare rates, features and terms and conditions.Ĭompare Term Deposits with Canstar How do I choose a term deposit? You might be tempted to go with one of the big four banks because of name recognition or because you already have another product with them. → Explore: How does a term deposit work? Should I consider a term deposit from the big four? This means the investment return over time is harder to predict. But unlike term deposits, you many need to meet certain conditions, and the interest rate could change at any time based on market conditions. So if you want more flexibility, you might want to consider a high-interest savings account instead. If you decide to take out your money early, you may be charged a penalty fee or earn a reduced rate of interest.

Given the interest rate is fixed for the term of the investment, you know in advance how much you will earn at the end of the term. When your term deposit matures at the end of the fixed term, you can either roll over all your invested money into a new term deposit – likely at a new interest rate – or you can withdraw some or all of the money.

Danske bank fixed term deposit rates