Everyone in Australia knows about the importance of putting money away and saving for the rainy day that may come along at any time. We all want to be good financial planners and to be able to invest our hard-earned savings into risk-free, fairly high-return endeavours but it is a little bit of a minefield out there and it can be difficult knowing what to invest in and what to stay away from. The vast majority of us want safety when it comes to our savings and as long as we get a reasonable return then we are fairly happy.
This is why you really should be looking into a high rate term deposit for your savings and there are a number of them to choose from. The normal one that you can choose from in the local high street varies from one year, three years and even five years or longer. The beauty about it is that the financial institution will pay you a fixed interest rate based on the amount of money that you invest with them and so you know exactly how much money to expect at the end of any financial year. If this sounds like an attractive proposition and you would like to find out more, then the following are just some of the benefits of putting your money in a high-rate term deposit in Australia.
1. You get a guaranteed return – Whatever time-limit that you sign up for and interest offered then this is money that you are guaranteed to get and some pay you your interest monthly while others give you the lump sum at the end of the year. This allows you to plan for any future expenses like home improvements that may be coming up because there is no ambiguity and you know exactly how much money that you will receive and when you’re going to get it.
2. It’s a low-risk investment – It really doesn’t matter how the market performs because you already signed on the dotted line for a fixed term at a set interest rate and so this offers you a relatively low-risk investment that is perfect for people who don’t want to take risk. As was mentioned briefly before, you get to choose the duration of the deposit and so you have the option of saving it for only a short space of time or over a longer period of time.
3. A minimum investment is required – You can take advantage of this option no matter how much money that you have and many financial institutions will allow you to open up a fixed-term account for as little as AU$100. This gets you into the habit of putting money away every single month when you don’t have a lump sum to invest.
This is why term deposits make so much financial sense because they allow you flexibility as to how long you want to invest your money and for how much.