With 13 interest rate rises since May 2022 now could be a good time to take advantage of a term deposit
- Replies 7
There’s no doubt that since the RBA began hiking the cash rate in 2022, returns for depositors have become more attractive*, providing a much-needed uplift for those with a nest-egg to nurture.
The RBA have increased the cash rate 13 times since May 2022 but rate changes have slowed in 2023, particularly in the second half.
What the RBA will do over the next 12 months is anyone’s guess, however in a world where uncertainty can abound, term deposits can offer a safe way to generate a guaranteed return over a fixed period*.
For many savers and investors alike, such as fully or partially self-funded retirees, having this peace of mind is a popular choice. A term deposit also eliminates the temptation to make impulsive withdrawals as your funds are locked away and they don’t involve the hurdles that some savings accounts impose to earn the maximum interest rate. In fact, there’s a number of benefits a term deposit can offer you which many savings accounts can’t*. It's a steady, dependable option for those looking to balance growth and security*.
A guaranteed, predictable return
In an environment where returns from savings accounts may fluctuate, Term Deposits provide a guaranteed return for a period. For example, Community First Bank’s current term deposit special of 5.25%p.a.* offers an attractive return for 12 months with interest on maturity for deposits from $50,000 to $1 million.¹
By committing a predetermined sum of money for a specific duration, you secure a fixed interest rate throughout the term*, which means you can often avoid the uncertainties that can accompany market fluctuations.
Protection from impulse spending
In a world where advertisements and consumer temptations abound, dipping into your savings can often be too tempting. Term Deposits serve as a financial safeguard*, offering a haven for your funds and acting as a deterrent against impulsive spending. With your money securely locked away for a chosen duration, you gain a sense of control over your finances, making it easier to resist the lure of impulse purchases.
Lower effort
Savings accounts can come with conditions you need to remember to adhere to so you can get the maximum interest rate. For example, saving a certain amount each month or making transactions on a linked account. A term deposit on the other hand requires no effort on your behalf during the term*, so you can set and forget while you earn a guaranteed rate.
Safe and secure
Term deposits are generally considered a safe and low-risk investment option* in Australia. First, this is because the return is guaranteed and protected from fluctuations during the term. The interest rate is set at the time of investment and remains constant throughout the term.
Second, eligible deposits in Australia are covered by the Australian Government’s Financial Claims Scheme. Under this scheme, eligible deposits in authorised deposit-taking institutions (ADIs), including banks, building societies, and credit unions, are guaranteed up to $250,000. This means that even if the financial institution fails, your eligible deposits up to the guaranteed limit are protected.
Take advantage of better returns
For a limited time, Community First Bank are offering 5.25%p.a.¹* on a 12 month term deposit with interest paid on maturity. It’s available for new money^ deposits from $50,000 up to $1 million*.
So if you’re looking for a safe and secure investment option*, or simply looking for a better return on your nest egg*, talk to Community First Bank's team today.
To find out more about this offer and apply, go to Community First Bank's Term Deposit Application page here*!
Terms and conditions, fees and charges apply. 1 Rate is effective as at 9/11/23 – available until 31/01/24 or until limited allocation is reached and can be withdrawn at any time. Rates are for deposits between $50,000 and $1 million. Rates for amounts above $1 million are subject to approval. Term Deposits are available to be withdrawn at maturity. If you seek an early release of your term deposit prior to its maturity date, an early withdrawal interest penalty may apply. We may require up to 7 days written notice of your intention to make an early withdrawal.
^ Offer is for new term deposits and is only eligible for funds that have not been with Community First or Easy Street in the last 14 days from the date of enquiry and where the offer conditions are met. The information contained in this advert is general information and does not take into account your personal objectives, financial situation or needs. It is important, before deciding to take up the product, that you consider your personal circumstances and the terms and conditions when deciding to use any product (terms and conditions, fees and charges apply). Community First Credit Union Ltd is the product issuer ABN 80 087 649 938 AFSL/Australian credit licence 231204.
*Please note, members, this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We simply do this to assist with the costs of running the SDC. Thank you!
The RBA have increased the cash rate 13 times since May 2022 but rate changes have slowed in 2023, particularly in the second half.
What the RBA will do over the next 12 months is anyone’s guess, however in a world where uncertainty can abound, term deposits can offer a safe way to generate a guaranteed return over a fixed period*.
Boost your savings with Community First Bank! Image source: Community First Bank.
For many savers and investors alike, such as fully or partially self-funded retirees, having this peace of mind is a popular choice. A term deposit also eliminates the temptation to make impulsive withdrawals as your funds are locked away and they don’t involve the hurdles that some savings accounts impose to earn the maximum interest rate. In fact, there’s a number of benefits a term deposit can offer you which many savings accounts can’t*. It's a steady, dependable option for those looking to balance growth and security*.
A guaranteed, predictable return
In an environment where returns from savings accounts may fluctuate, Term Deposits provide a guaranteed return for a period. For example, Community First Bank’s current term deposit special of 5.25%p.a.* offers an attractive return for 12 months with interest on maturity for deposits from $50,000 to $1 million.¹
By committing a predetermined sum of money for a specific duration, you secure a fixed interest rate throughout the term*, which means you can often avoid the uncertainties that can accompany market fluctuations.
Protection from impulse spending
In a world where advertisements and consumer temptations abound, dipping into your savings can often be too tempting. Term Deposits serve as a financial safeguard*, offering a haven for your funds and acting as a deterrent against impulsive spending. With your money securely locked away for a chosen duration, you gain a sense of control over your finances, making it easier to resist the lure of impulse purchases.
Lower effort
Savings accounts can come with conditions you need to remember to adhere to so you can get the maximum interest rate. For example, saving a certain amount each month or making transactions on a linked account. A term deposit on the other hand requires no effort on your behalf during the term*, so you can set and forget while you earn a guaranteed rate.
Safe and secure
Term deposits are generally considered a safe and low-risk investment option* in Australia. First, this is because the return is guaranteed and protected from fluctuations during the term. The interest rate is set at the time of investment and remains constant throughout the term.
Second, eligible deposits in Australia are covered by the Australian Government’s Financial Claims Scheme. Under this scheme, eligible deposits in authorised deposit-taking institutions (ADIs), including banks, building societies, and credit unions, are guaranteed up to $250,000. This means that even if the financial institution fails, your eligible deposits up to the guaranteed limit are protected.
Take advantage of better returns
For a limited time, Community First Bank are offering 5.25%p.a.¹* on a 12 month term deposit with interest paid on maturity. It’s available for new money^ deposits from $50,000 up to $1 million*.
So if you’re looking for a safe and secure investment option*, or simply looking for a better return on your nest egg*, talk to Community First Bank's team today.
To find out more about this offer and apply, go to Community First Bank's Term Deposit Application page here*!
Terms and conditions, fees and charges apply. 1 Rate is effective as at 9/11/23 – available until 31/01/24 or until limited allocation is reached and can be withdrawn at any time. Rates are for deposits between $50,000 and $1 million. Rates for amounts above $1 million are subject to approval. Term Deposits are available to be withdrawn at maturity. If you seek an early release of your term deposit prior to its maturity date, an early withdrawal interest penalty may apply. We may require up to 7 days written notice of your intention to make an early withdrawal.
^ Offer is for new term deposits and is only eligible for funds that have not been with Community First or Easy Street in the last 14 days from the date of enquiry and where the offer conditions are met. The information contained in this advert is general information and does not take into account your personal objectives, financial situation or needs. It is important, before deciding to take up the product, that you consider your personal circumstances and the terms and conditions when deciding to use any product (terms and conditions, fees and charges apply). Community First Credit Union Ltd is the product issuer ABN 80 087 649 938 AFSL/Australian credit licence 231204.
*Please note, members, this is a sponsored article. All content of ours that has an asterisk next to it means we may get a commission to write an article or post a deal. We simply do this to assist with the costs of running the SDC. Thank you!
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