bank of melbourne term deposit interest rates

Whilst term deposits are classed as a safe investment, they do have some trade-offs in comparison to riskier investment types. You can also use shorter periods to keep your money safe and growing for a later investment that they are planned for. In turn, shorter term deposits can be more advantageous in long-term rising interest rate conditions as they allow you to roll over (with interest gained) into an even better interest rate. However, if you were to take a 5-year term deposit and find yourself in a lower interest rate environment by the time of maturation, it would leave you with few options in terms of where to deposit your money. The length of your term deposit depends on your financial situation as well as the financial environment you find yourself in.įor instance, taking a longer term deposit will generally give you a higher interest rate which you can take advantage of well into a low interest rate environment due to the rate being fixed. Should I take a long or short-term deposit?

What banks offer good term deposit rates in Melbourne?Īs Australia’s biggest city, Melbourne has wide access to a variety of term deposit providers giving a breadth of options.īut Melburnians no longer need to restrict themselves to local branches anymore as more online term deposits are offered by banks who themselves find greater advantage in becoming increasingly digital. In addition, it’s important to note that term deposit providers will usually require a minimum deposit amount ranging from $1,000-$25,000 depending on the account. However, to gain a higher interest rate, you’ll need to keep your cash stored away for longer terms which may not work for savers with limited cash flow. Term deposits are a great way to keep money stashed away as they generally offer higher interest rates on average than savings accounts. With inflation on the rise, it’s becoming increasingly important for Melburnians to keep their savings stored away in high-interest accounts to offset inflationary pressures. Why might you need a term deposit in Melbourne? It may be tempting to apply for a 5-year term at a higher interest rate, but keep in mind that if you need to withdraw this cash at any point before the term deposit maturation, you’ll likely have some restrictions such as AMP term deposits requiring a 31-day prior notice for early withdrawal. Upon reaching maturity, you may choose to either roll over to a new term with the interest gained or instead choose to have your savings deposited into a bank account of your choosing. By applying for a certain term-say, one year-you’ll be given a fixed interest rate that will apply to the deposit until its maturation date. Term deposits in Melbourne work much the same across the rest of the country.

Bank of melbourne term deposit interest rates