Some of the top-rated term deposits in April 2024

When working out where to invest or deposit your money, should a term deposit get a look-in? While term deposit returns may not be the highest of all investment options, their relative reliability and security could make them worth considering.

Investments can help to grow your wealth by letting you benefit from returns. Generally, the higher the risk, the higher the reward, though past performance is not a reliable indicator of future performance.

But when it comes to protecting your savings, a term deposit locks in your money for an agreed term so it can’t be easily accessed or spent. Plus, term deposits are guaranteed by the Australian government up to $250,000 per person per ADI, so in the unlikely event your bank went out of business, you can be confident you’ll get your money back.

It’s also important to keep in mind that while you can often quickly get your money out of other investments and deposit accounts like savings accounts if you need it in a hurry, a term deposit will often require at least a month’s advance notice to withdraw the cash. While this could help you to resist the temptation of spending, it may not offer the flexibility you want.

Term deposit interest rates are fixed in advance, so you can confidently calculate the interest income you could receive over the term  Also, term deposits often earn simple interest rather than compound interest – this means while you can enjoy interest income from your term deposit, you won’t be earning interest on your interest and growing your wealth faster, like with a savings account.

But it’s important to consider more than just the interest rate when comparing term deposits. RateCity’s Real Time Ratings™ combine the interest and flexibility scores of different term deposits into a single star rating out of five, so you can get a better idea of the overall value on offer at a glance. These ratings are updated frequently to help them stay accurate in a changing marketplace, with the top-rated term deposits in different categories being ranked on RateCity’s Leaderboards. Some of the top-rated term deposits may also become eligible for a RateCity Gold Award.

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