Term Deposits

by www.TermDeposit.info
A term deposit is one of the best forms of investment. It is comforting thought knowing your money is earning a high interest rate that is better than normally offered by banks.
At the same time it is still as secure and guaranteed by statutory regulation that every other bank transaction, by the stringent and comprehensive Australian banking laws. The normal periods offered for term deposits by financial institutions are:-

• 1 Month
• 3 Months
• 6 Months
• 9 months
• 12 months

It is unusual for Term deposits to be for any period longer than a year. The Term deposit can be arranged for it to be automatically "rolled over" or re-invested for a further 12 months if this is needed. The investor is usually given the opportunity to re-invest and increase the principal also at maturity.

If you withdraw an amount from your term deposit prior to maturity, the bank may reduce the interest earned by what they consider to be a reasonable estimate of the costs to them. This cost, known as an Early Withdrawal fee, may total (or be up to) the accrued interest amount, but should never exceed this amount.

The term deposit packages offered by the various Australian financial Institutions have their own terms and conditions so it is best to check out several before deciding.

Currently all deposits of up to $1 million (limit applies to total funds deposited with the financial institutions) are covered by the Australian Government Deposit Guarantee, so you know your savings are always safe and secure. Most financial institutions offering term deposits place limits on the amount that can be invested. usually this is at least a minimum of an initial $1,000 Deposit. The maximum is often $1 million per account, because of the ceiling figure under the Government guarantee.