We all struggle at times to save some of what we earn. It can often seem like there’s a non-stop financial leak, that there’s always bills that need to be paid and you’re constantly on the back foot in terms of your savings. Fortunately, banks have come up with different solutions that make it easier for you to achieve your saving goals.
One of those solutions is a term deposit account. These accounts allow you to save and earn interest from your savings over a set savings period. Apart from helping you to save some of your earnings, term deposits provide guaranteed returns and numerous other benefits that will help you move closer to reaching your financial objectives.
Let’s take a look at some of the reasons you should consider term deposits to help you save for the future.
Locked Away Savings
Term deposit accounts lock away your savings for a specified period, during which you cannot access the money. While it might sound like a very strict setup, for many customers it helps you to stay away from your savings until the agreed period making it easier to achieve your financial goals.
Higher Interest Rates
Most saving accounts earn minimal interest rates, which make them unattractive for long-term savings. It doesn’t matter whether you will withdraw your savings or not and that is reflected in the lower rates offered. Term deposits, on the other hand, offer much higher interest rates. You are therefore able to earn money and increase the original amount you deposited in your account with ease.
Minimum Deposit
Most term deposits require a minimum deposit of only $1,000, which makes them ideal for long-term savings. Even a relatively small deposit amount like this will give you some returns on your money and help you move closer to any savings or financial goals you may have on the horizon. Whether you’re planning on saving to start a new business, for a holiday or for your children’s education, term deposits are a great choice as you can choose the amount you want to deposit, the period of time you want to invest over and sit back and watch your money multiply.
No Account Fees
Another great benefit of a term deposit account is you are not required to pay any account fees in order to get started. In addition to avoiding joining fees, you also don’t have to worry about paying any maintenance fees, which makes term deposit accounts the ideal way to save your money without paying anything.
Guaranteed Returns
Above all else, when you invest money, you want to be sure that you are going to see a return on that investment. Term deposits allow you to plan your savings with a very safe, low-risk investment. Since the interest remains constant throughout the agreed period, you already know what your return is going to be when you get your payout or when the account reaches maturity. This allows you to accurately plan your savings and work towards any financial goals you may have.
For example, if you want to save $10,000 for your child’s college education, you can talk to the bank and see exactly how much money you would need to deposit and over what period of time, to guarantee that return. Of course, the key is that you have a guaranteed return that you can rely on receiving to put towards whatever it is you are saving for. And the more you invest, the more you’ll save.
Save Without Risks and Earn the Most Interest
We all work hard to earn a living and you want to get the most out of your earnings as you possibly can With term deposits, you can put your money to work from you with a conservative, low-risk and ultimately very safe investment option.
Term deposits give you the opportunity to take your hard earned money and multiply it without having to put in extra hours, overtime or make risky investments. Instead, you can rest easy, knowing that your money is making you money in the background, allowing you to move work towards savings goals with confidence.