Term deposits
Are you thinking about getting a term deposit? Do you have an existing term deposit?
What are the nine things you need to know about term deposits? To find out, check out ASIC’s investor and consumer guide on term deposits. It’s short, easy to follow, and essential if you want to get the most out of a term deposit.
Read our guide on how to get the most out of your term deposit
Don’t set and forget!
Term deposits are government guaranteed - but they are not a ‘set and forget’ product.
If you’ve got a term deposit, you might already know that when it comes to the end of its term, it will rollover automatically unless you tell your bank, credit union or building society that you don’t want this to happen.
FIDO says: don’t just let your term deposit rollover automatically - even if you are happy for it to reinvest for the same term. Although interest rates have come down, you still want a competitive interest rate on your new term deposit. Because of the way that term deposits are priced and promoted that may not be as straightforward as you think. If you let your term deposit rollover automatically, you risk ending up with a below market interest rate.
To get a market-leading rate, you might need to switch to a shorter or longer term, or switch to another bank, credit union or building society.
FIDO Website: Printed 02/10/2010
