How to Choose Bank for Your Term Deposits
If you choose to invest with Great Southern Bank’s term deposits, you can rest assured that you are receiving the best interest rates today.
15:32 01 September 2022
You've just landed your dream job, and you need to deposit some money into your new bank account. You might be wondering how much time it will take to earn back the cost of the term deposit, or whether you should keep it for the long term. When you’re investing your money, it’s important to do so in ways that benefit your bottom line and your savings goals, not just the bank’s bottom line.
If you choose to invest with Great Southern Bank’s term deposits, you can rest assured that you are receiving the best interest rates today, along with world-class customer service from Great Southern Bank’s seasoned professionals. Here are some helpful tips to help you choose the best term deposit for your needs and goals.
Why should you invest in term deposits?
Term deposits offer several advantages: they are low-risk, you know exactly how much interest you will earn, and your money is easily accessible if you need it. A term deposit is an excellent way to save and grow wealth with little risk.
When investing in term deposits, two things matter most: the length of the term deposit and the interest rate on the deposit. For example, imagine that you have $10,000 in cash available now but want to keep some funds liquid in case an emergency arises. Now imagine that over the next year there is a 5% chance you will need this cash at any time.
Identify what you are looking for
When you are ready to make a purchase, it's important to have a clear understanding of what you're looking for. This will help ensure that the bank can meet your needs and expectations. Here are some questions to ask yourself:
- What is my investment horizon? How far out do I plan on leaving my money invested? Do I want a conservative or aggressive investment strategy?
- What is my appetite for risk? Do I prefer lower-risk investments with lower returns or higher-risk ones with greater potential returns but also higher volatility? Or something in between!
- What is my income tax bracket? How much income tax liability would this account incur if it were cashed out at age 65 today, and how much would its growth potential be taxed at each level along that timeline as well?
- Are there any other factors that may affect whether this account meets all requirements?
Compare the interest rates on the offer
First, it's important to compare the interest rates on offer. This can be done by looking at a range of terms and amounts, for instance, you might want to pick up a term deposit with an initial deposit of $10,000 for three years at 3% interest per year. You could also look at different periods, say 3 months, 6 months, and one year, and decide which is most appropriate based on your needs.
Is there a term deposit bonus?
A term deposit bonus is a one-off payment made to the account holder at the time of opening a term deposit. The bonus is not guaranteed or cumulative, so you won’t be able to earn more from it if you don't keep your savings with us for a specified period. Look for banks that offer bonuses of at least 1%. This will help you get more interest in your investment.
Also, make sure that the bank is insured. This will protect your investment in case the bank fails. You should also look at the fees that the bank charges. Some banks charge monthly fees, while others do not. Make sure that you understand all of the fees before you make your decision.
What is the minimum deposit and investment amount?
Choosing a bank for your term deposits is an important decision. You want to make sure you choose a bank with a good reputation and that has experience handling investments. The first thing you need to do is decide how much money you want to invest. The minimum deposit amount is usually $500, but some banks may require more.
You also need to decide how long you want to invest your money. The investment period can range from one year to five years. Once you have decided how much money you want to invest and for how long, you can start looking for banks that offer term deposits.
Make sure to compare interest rates and fees before making your decision. Choosing the right bank for your term deposits can help you reach your financial goals.
Is the term deposit flexible?
The flexibility of the term deposit is one of the most important factors to consider when choosing a bank for your term deposits. As long as you are paying an annual interest rate, it is worth looking at what options are available in terms of withdrawal and penalty charges.
A flexible option will allow you to withdraw your funds without penalty or notice periods. You can also choose whether or not there will be a fee associated with starting funds early from their account.
How do you access your funds?
If you wish to access your funds early, there is a penalty. If you deposit your term deposits before maturity and withdraw them early, then there is an additional fee of 2%. If you deposit your term deposits before maturity and withdraw them late (within the first two weeks of their maturity), then there is also an additional fee of 2%. The only way to avoid these fees is if they offer bond-style products with no penalties whatsoever!
The best way to find the right bank for your term deposit is to compare your options. The interest rates and terms can vary widely, so make sure you’re getting the best deal for your money. Great Southern Bank's Term Deposits are competitively priced and have flexible terms, allowing you to spread your money out over the year. Whether it’s a savings account or credit card, a term deposit is an important part of managing your money!