Term deposits are a low-risk way to invest your money and get a fixed interest rate. They keep your money for as long as you choose (the term), usually between one month and five years. If you need your money before the deadline ends, you'll have to pay a penalty. A term deposit is a type of savings account where you invest your money for a fixed period of time, from as little as one month to five years.
It offers the certainty that your money will grow at a specific rate, and you can view, control and manage your term deposit along with your other accounts in NetBank, CommBiz and the CommBank app. Perhaps the biggest benefit of choosing a savings account instead of a fixed-term deposit is being able to access your money if you need it, while still earning interest. However, if your term deposit is still due, your bank will charge you a penalty for withdrawing your funds early. Interest rate risk exists if investors are stuck in a term deposit with a low interest rate while overall interest rates rise.
Both term deposits and savings accounts have advantages and disadvantages, and it's best to make a decision based on your individual goals. Your savings are locked in for the fixed period you choose, between one month and five years. Choose a term from one month to five years and get a fixed and competitive interest rate on your deposit. Sign up for alerts and we'll send you an email or SMS one week before your term deposit is due, so you never miss your due date.
Generally, you'll need to meet a monthly deposit condition to get the full interest rate on your savings account, which can be a good incentive to continue to increase your balance and increase your savings.