If you’re looking for a way to make your money work for you, there are plenty of options to consider. From the stock market to other investment strategies, it seems like there are countless ways to get a return on your money these days. That being said, the humble savings account and term deposits are also worth thinking about.
Many people discount these sorts of savings strategies, because investors are quick to flaunt that you can get more of a return from something with a higher interest rate. That being said, it is possible to find some term deposits or saving accounts with better rates, helping you to grow your money safely in a less volatile account than the stock market. Here’s some info to keep in mind as you compare term deposit rates for September 2020.
What features should you be looking for in your term deposits?
If you want your savings to grow, a high-interest term deposit is a great option. That being said, not all term deposits are created equally, so it’s important to pay attention to more than just interest rate when you’re looking to open a new savings account. For example, you’ll want to determine whether it makes sense to go with a shorter-term or a longer-term. One of the factors that may impact this choice involves whether or not there’s an early withdrawal penalty on longer-term accounts. If you think that you may need to initiate an early withdrawal, and the credit union or financial institution does have an early withdrawal penalty, it might make sense to just go with a shorter-term savings account, even if it has a lower rate.
Another factor to keep in mind when picking and setting up your term deposit is whether or not your returns are locked in. One of the benefits of using term deposits instead of traditional savings accounts is that you can access a higher annual percentage yield, or APY. For example, a six-month term deposit may have a monthly rate of .65%, whereas a 12-month term deposit might offer .85%. Ensuring that your term deposit rate is fixed and locked in when you open the account can ensure that you actually get the return you’re expecting on your investment.
Where can you get the best rate for term deposits?
If you’re interested in diversifying your savings and investments with a term deposit, you’re likely going to want to compare different banks to see what the annual percentage yield is with different term deposits. At the same time, while a higher rate of interest is something you’re definitely going to want to prioritize in your search, you’ll still want to find a bank, credit union, or other financial institution that can meet your needs in relation to how much money is needed to open the term deposit account.
In order to find the best term deposit rates for each month you’re looking, be sure to use a website that lets you quickly and efficiently compare different financial products. This can make the arduous task of comparing different interest rates, maturity dates, and credit unions much smoother when it comes to choosing a savings account with the annual percentage yield you’re looking for. Banks are constantly changing their interest rates and offering special rates for new depositors, so be sure to start your search when you’ll actually be able to set up your term deposit account. Otherwise, you may find that the deal or special rate that you thought you could take advantage of is no longer available at the financial institution you were thinking it was.
