Do you need to save your money for periods ranging from one month to several months? Do you also get tempted to dip into your savings occasionally? If so, you should look into the benefits of term deposit accounts to help you execute your savings plan with confidence from this moment on.
Term deposits accounts are specially designed for those who need to save their money for specific periods of time. And, with these types of accounts, you can also enjoy other term deposit benefits that can help you better manage your money and increase your savings in the long-run.
Let’s take a look at some of the benefits you can expect from a term deposit account.
Flexible Savings Plan
We all have different saving strategies, depending on our goals and how we like to manage our finances. With a flexible savings plan, you can save from as little as $1000 up to a maximum of $2 million and you have the ability to set the saving period to be a little as 1 month, and as long as 5 years.
Most customers who want to get the most return on their money will choose the longest period, which ranges from 1 year for some, to five years for others. The flexibility offered by these accounts makes it ideal for anyone who wants to execute his or her savings plan in a precise and tactical manner.
Get a Term Deposit Account For Free
You don’t have to pay anything to enjoy the benefits of a term deposit account. There’s no minimum balance required to open the account, which means that when you deposit funds, that is the exact same amount you will withdrawal, plus interest.
On the other hand, most transaction accounts will require that you maintain a minimum deposit when you make withdrawals. The only option to withdraw all of your funds is to close the account which can be a lengthy and time-consuming procedure and often discourages customers from closing their accounts, allowing them to continue saving.
Set Payout Period
You’re free to choose when you will receive your benefits, thanks to flexible payout options. You may choose to receive your payouts monthly, quarterly, biannually, annually, or even at maturity. If you’re on a strict saving plan, the best option is to receive the payouts at maturity. That will allow you to withdraw all your savings plus interest as a lump sum and start putting your money to use.
One of the main benefits of using a term deposit account is you are guaranteed that you will multiply your money over time.
In fact, the government guarantee that any amount you deposit, up to a maximum of $250,000 can be claimed back in the event the bank closes it business. The cover is provided through the Financial Claims Scheme and allows you to save your money with confidence, knowing that you’re covered in the worst case scenario.
Earn More from Your Savings
When saving money, the goal is to grow your money over time and get as good a return as you can on the funds that you have deposited. A term deposit account is, without a doubt, one of the most certain and secure ways to do this and with the Government Guarantee Scheme covering up to $250,000 if the bank closes, you can plan for your retirement with peace of mind.
Penalties for early withdrawal make most people think twice about withdrawing their savings before maturity, making it easier for you to complete your savings plan and move a little closer to financial security. And with money in the bank, you can get on with living your life and looking out for your future without the stress and hassles that financial instability can bring.