Are Term Deposits Guaranteed in Australia?

Are you looking for a secure and reliable investment opportunity? If so, term deposits may be the perfect option for you. In Australia, term deposits are protected by the government guarantee, meaning that your funds are safe and secure. With a variety of different terms available, from one month to five years, you can find the perfect term deposit to meet your needs. The Reserve Bank of Australia (RBA) cash rate is one of the factors that banks consider when setting their interest rates for deposit products.

This means that when the RBA cash rate increases, banks often raise their interest rates for savings and fixed-term deposits as well. As a result, you can enjoy a competitive and fixed interest rate on your term deposit. When it comes to protecting your funds, the Australian Government has developed an easy-to-recognize seal that licensed institutions that accept deposits (ADIs) may choose to use. This seal helps depositors understand that their deposits are protected by the Government's bank deposit guarantee (also commonly known as the Claims Plan).

Financial (FCS)). If your term deposit has reached its maturity, you can withdraw all funds as with a normal bank account. Additionally, if you choose to renew your term deposit, the renewal date is considered the due date for FCS purposes. At AMP, we offer a variety of term deposits with competitive interest rates and additional interest when you transfer your deposit to a new term deposit.

Search and compare government-guaranteed term deposits and calculate interest rates, refunds, fees and more to find the right term deposit for your needs. If you're looking for a secure and reliable investment opportunity, consider opening a term deposit in Australia. With the government guarantee protecting your funds, you can enjoy a fixed and competitive interest rate on your deposit with peace of mind.

Liam Anderson
Liam Anderson

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