(Closed) Term deposits

posted 5 years ago in Money
Post # 3
Member
533 posts
Busy bee

Term deposits are only worth it if you put a substantial amount away for a LONG time. 3 months isn’t long enough. Just have some self control and don’t touch the money. 

Post # 5
Member
533 posts
Busy bee

I wasn’t meaning to come off rude. If you want to do it, then do it. My guy chucked a lot away for over a year, gave him a boost. But wasn’t really substantial. I googled them recently, plenty of banks have calculators to see if it’ll be worth it. 

Post # 6
Member
546 posts
Busy bee
  • Wedding: September 2017

I don’t think the PP was rude at all but just telling the truth. I also agree that 3 months isn’t long enough and I wouldn’t even bother putting it in a deposit for that short since the interest rate wouldn’t be much higher than my current savings account. I’ll give you an example with non-redeemable GIC’s since that’s what i’m familiar with in terms of what i’ve done in the past and am currently doing.

Interest Rates

Checking: I’m not sure what it is but it’s SUPER low

High Interest Savings Account: 1.2% paid monthly

Non-Redeemable GIC

Interest Paid @ Maturity 90 days – 179 days: 0.8% (makes no sense to me since i’d be earning more interest in my saving’s account)

What i usually put it in is 1.5 years “Interest Paid Semi-Anually, Anually or Compounded Anually and Paid at Maturity”: currently it’s at 1.55% but i lucked out and got it when the interest rate was at 2.1% and one a 1.85% a year or two ago (matures at the end of this month).

My GIC’s are also within my TFSA’s(1.55%) so i don’t get taxed on the interest. I plan on maxing out the contribution space every year if i can afford to.

I hope this helps. 

Post # 7
Member
8318 posts
Bumble Beekeeper

Don’t forget that you have to pay tax on the interest as well which can sometimes not make it worth it. And it can affect your other entitlements as it is deemed income by the ATO. So if you  guys recieve any of the family assistances, medicare rebate etc etc it might be affected come tax time.

RAMS has a good high interest savings account at 5.75%, followed by Ubank (5.71%) and then Rabobank. Most of the high interest accounts give you a bonus if you keep the balance above your original deposit for 12 months. It might be a better option for you!

This is a good tool to use when looking for credit cards, loans, accounts etc.

http://www.infochoice.com.au/banking/savings-account/online-savings.aspx

 

Post # 8
Member
12826 posts
Honey Beekeeper
  • Wedding: November 1999

It’s not worth it for three months.  You’ll get so little back in interest, and then, like PP said, you’ll have to pay taxes on it anyway, so it negates the benefits. Just put it in a savings account and continue not touching it until you need it!

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