High interest savings accounts are also more convenient: you can access your money at any time and don't have to pay a break fee as with a term deposit.īut a term deposit could be a good option if you like the financial discipline to have the money locked away so you can't touch it.

But term deposit interest rates have fallen.Īt a time of record low interest rates, you'd be hard-pressed to find a term deposit rate higher than the highest rate offered by a high interest savings account. In the past, term deposits offered higher interest rates than high interest savings accounts, particularly over longer terms.

Are term deposits better than high interest savings accounts? Interest is often paid at the end of the term but sometimes also monthly, quarterly or annually for longer-term investments.īut are term deposits better than high interest savings accounts? We give you the lowdown on term deposits to help you find the best deal for your needs. Term deposits fix your savings for periods between one month to up to five years.

Beware of rolling over a term deposit at the end of the term as it may change to a much lower rate.

But you’ll have to pay break costs if you need the money earlier.

A term deposit gives you certainty as rates are fixed for the term.

It’s hard to find a term deposit that has higher interest rates than savings accounts.

Comparison of bank term deposit rates