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.
