Compare term deposit rates for amounts over $500k

Term deposits are a terrific investment option for those who want a low-risk way to invest.

While the reward may not be as bountiful as high-risk options, you can still earn high interest rates when you deposit large sums. Interest rates for deposits over $500,000 can earn you thousands.

How much money can you earn from term deposit interest?

The amount of money you’ll earn by opening a term deposit account depends entirely on how much money you’ve invested and the interest rate you’ve chosen.

Interest rates are calculated in percentages, which means that when you invest more money from the start, a larger amount of interest will be earned regardless of the rate. For example, if you’ve settled on an interest rate of 2.5 per cent, a deposit of $10,000 will earn $250 over 12 months, while a deposit of $100,000 will earn $2,500 over the same amount of time.

The money you earn will also depend on the interest rate itself. The higher the interest rate, the more money you will earn regardless of how much you’ve invested. That’s why it’s important to compare term deposits and ensure you’re getting the best deal on the market.

It’s worth noting, however, that larger deposits tend to have higher investment rates. For example, you’ll usually earn a higher interest rate for a deposit over $500,000 than you will if you invest only $1,000.

What is a high interest rate?

There isn’t any magic number that constitutes a high interest rate. The banking market changes from day to day, which means that interest rates also change. The interest rate considered high five years ago is not the same number that’s considered high today.

It’s important to remember that finding a high interest rate is a matter of understanding today’s market. It won’t help you to know the interest rates on offer last year. To find a great interest rate, you need to research the interest rates that financial institutions are offering right now.

You’ll also benefit the more you invest, such as achieving a high interest rate for a deposit over $500,000.

What else should you consider before choosing a term deposit?

It’s essential to consider your interest rate when you choose a term deposit, but there are a few more considerations to be made. The first of these is the type of term deposit. The two main types of term deposits are short-term and long-term. Short-term deposits are typically for periods of less than one year. These deposits can start at just one month.

Short-term deposits are a sound option for those who have a short-term savings goal. For example, someone hoping to buy a house within six months might consider a short-term deposit to help them save money.

Long-term deposits are for a period of longer than one year and can last for up to five years. Long-term deposits are beneficial because they usually incur a higher interest rate than short term deposits. These deposits are a great option for those who don’t need to access their savings funds in the coming years.

When choosing a term deposit, you might also consider its features. Partial withdrawal allowance, frequent payments, and compounded interest are features that could help you make your choice.