Best Term Deposits – Long Term

GOLD WINNERS BANK BANKVIC MAJOR BANK BANKWEST NON-BANK NEWCASTLE PERMANENT For a higher interest rate, you need to stash away your savings for longer

Term deposits that are locked up for longer than 24 months attract higher interest rates, which can be double those for short-term deposits.

But they are designed to provide a specific outcome: a guaranteed interest payment after, say, five years. And the early withdrawal penalty is enough to put you off withdrawing the funds before they mature.

Bankwest is our major bank winner this year. Its interest rate, the highest in the category, applies from a starting amount of $1000. Payments can be made monthly, quarterly, six-monthly or annually, although the amounts will differ based on the frequency you choose.

As more account holders like to do their banking online, Bankwest

is focusing on improving its digital offering.

“We’re looking to continue to improve the customer experience with term deposits over the next 12 months, and anticipate potentially introducing a feature that gives customers the ability to elect to receive all notifications electronically,” says Louise Tovey, general manager, everyday banking, at Bankwest.

Newcastle Permanent Building Society tops the non-bank category. It offers flexible terms, from 21 days up to five years, with no annual or monthly fees.

BankVic is the bank winner. Longer-term deposits are perfect for setting aside money for those special occasions, whether it’s a wedding, a milestone birthday or an education fund or while you’re waiting to purchase a property but want to get a higher interest rate than a transaction or traditional savings account will provide.