WHICH TERM DEPOSIT HAS MORE BANG FOR BUCK?

Written on the 22 July 2015

WHICH TERM DEPOSIT HAS MORE BANG FOR BUCK?

WITH record low interest rates, investors are turning to term deposits to get more bang for their buck according to CANSTAR.

The financial ratings provider assessed 99 term deposits from 76 different financial institutions to compare value for money.

ME Bank came out on top after striking a winning balance between high interest rates and strong features, while CUA took out the customer-owned institution category.

Two cuts to the official cash rate earlier this year, spurred 69 providers to lower interest rates by less than 0.5 per cent in the last six months and 12 providers to cut by more.

CANSTAR research manager Mitchell Watson says there are still some good deals available for savvy investors looking to maximise returns.

"When considering locking your money away, don't automatically assume that a long term means you are getting the best deal," Watson says.

"Naturally the interest rate on offer should be of the utmost importance, but we assess products based on their features, as well as their rates, because sometimes you have to look past the headlines to get the best return on your money.

"The financial institutions will factor in any anticipated changes to the cash rate when they set their rates, but this does emphasise that competition remains strong and savers can find good value if they pay close attention to what's on offer."

CANSTAR's research shows term deposits have produced a higher average return than online savings accounts over the last two years.

Based on a $25,000 investment over 12 months, consumers who parked their cash in a term deposit last June would have earned an average $217 more in interest compared to using an online savings account.


Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter