A term deposit is a cash investment held at a financial institution. Your money is invested for an agreed rate of interest over a fixed amount of time, or term. Term deposits can be invested into a bank, building society or credit union.
When the money is deposited, the customer understands that the money is there for the pre-determined period which usually ranges from 1 month to 5 years and the interest rate is guaranteed not to change for that nominated period of time. Typically, the money can only be withdrawn at the end of the period – or earlier with a penalty attached.
Term deposits are popular with investors who prefer capital security and a set return as opposed to the fluctuations of, say, the share market. Many investors also use term deposits as a part of their investment mix.
The following table displays one-year term deposit products on Canstar’s database, available to consumers looking to invest $10,000, with interest paid annually. The tables are sorted by advertised interest rate (highest to lowest), and then by provider name (alphabetically). To view products based on other terms and investment amounts you can compare term deposits with Canstar.