Term deposits have a set time to save or invest money, with intervals ranging from one month to ten years. To find the best high-interest term deposit, evaluate interest rates, term, and deposit requirements. Use an all-in-one website to compare options and consider penalties for early withdrawal. Finally, list and evaluate each option to find the best fit.
A term deposit is a type of savings account that has a predetermined amount of time to invest or save money. A certificate of deposit is an example of a term deposit because money is deposited for a specific amount of time. Time intervals can be as short as a month or as long as 10 years. To determine the best high-interest term deposit for your money, you need to evaluate several characteristics of the certificate of deposit, including the interest rate, term, and deposit requirements.
A useful resource for finding the best high-interest term deposit is an all-in-one website that collects data on certificates of deposit. This helps narrow your options to the banks that pay the highest interest rates. Along with interest rates, these websites also tend to include information such as the bank name, certificate term, and minimum deposit amount required.
Once you’ve looked into high-interest term deposit rates, consider the duration of the term deposit. With a term deposit, you cannot access the money deposited until the term deposit expires. This means you have to balance earning a high interest rate with a time frame you can go without having access to the money. For example, if you deposit your money in a one-year certificate of deposit, you don’t have access to the money for the one-year period.
If money is withdrawn from a term deposit before the expiration date, there are usually penalties. These fees are usually a percentage of the term deposit amount, but can vary from bank to bank. The problem is that penalties can eat into your principal – or the initial investment amount – while also affecting your return on investment. This is why it is important to consider the duration of the term deposit.
Next, consider the minimum deposit requirement. Minimum deposit requirements can range from $250 to $100,000 US Dollars (USD). Narrow down term deposits with the highest interest rate with the term you want to invest the money in. In general, the trade-off for earning a higher interest rate requires more money to be deposited over a longer period than options with lower interest rates.
Once you’ve gathered information about each high-interest term deposit, list each option with the information next to it. Scroll through the list and start marking term deposits that don’t meet all of your criteria. The last one on the list is the best high interest term deposit for you.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
