This was posted 10 years 8 months 21 days ago, and might be an out-dated deal.

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5% Term Deposit 4 Year (BoQ) 5 Year (SUN/Investec)

50
5% Term Deposit 4 Year (BoQ) 5 Year (SUN/Investec)
Go to Deal
SummerMan on 14/08/2013 - 21:24 suncorpbank.com.au (173 clicks)
Last edited 22/08/2013 - 17:08

5Y http://www.investec.com.au/content/investec/investec/investe… (5.07%)
5Y http://www.suncorpbank.com.au/savings/term-deposits/personal (5.00%)
4Y http://www.boq.com.au/todays_rates_term_deposits.htm (5.00%)

Also, please read

  1. the fine prints
    http://www.investec.com.au/content/dam/investec/investec-aus…
    http://www.suncorpbank.com.au/sites/default/files/fm/term_de…
    http://www.boq.com.au/uploadedFiles/G475_Deposit_Products_PD…

  2. the forum
    http://forums.whirlpool.net.au/forum-replies.cfm?t=2142312

  3. the government guarantee
    http://www.apra.gov.au/crossindustry/fcs/Pages/default.aspx

Why is this a good deal?

  1. These two TDs are much better than any of its competitors
  2. These two TDs are yielding better than the best at call account at the time

Can this be a bad decision?

Definitely, if the rate rises a few times in the near future.

Say you get at call rate of 4.5% at the moment. It goes down to 4.25% in November. You get benefit from the TDs until the rate rise back to 5%. After the at call rate goes beyond 5% you start to have a trouble. (But you should have reaped the benefit of higer rate for a year or more at that point.)

Also, do note that the competition/demand for at call deposit is relatively low. Ubank belongs to NAB. RAMS belongs to Westpac. BankWest was purchased by CBA. Virgin was purchased by BoQ. The same things can be said to TD market too. If RBA were to raise the rate back to 2010 level, banks might not response by offering their 2010 rates.

After all, it is an educated bet.

BTW, If you don't have enough for term deposit, try
$50 from SUN http://www.ozbargain.com.au/node/113286
$50 from ING http://www.ozbargain.com.au/node/110723
$120 from Citi http://www.ozbargain.com.au/node/113317
and keep watching ozbargain…. it doesn't take long for you to get 1K for a TD.

THIS DOES NOT CONSTITUTE FINANCIAL/LEGAL/ECONOMIC/etc ADVICES.

Financial Term Deposit

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closed Comments

  • jackofspade on 14/08/2013 - 21:46

    After tax and inflation, you pretty much get nothing in return.

    • SummerMan on 14/08/2013 - 21:48
      +2

      I totally understand that.

      However, here I am talking about highest rate for TD for low-risk investment.
      I personally find 5% exceptionally good for the current market.

      You can get more from higher risk investment options… stock trading, etc.

      • jackofspade on 14/08/2013 - 22:02
        +3

        Yes 5% is currently the best 5Y rate but I just think people should be aware of the real return. BTW, I posted this deal http://www.ozbargain.com.au/node/20302 for 8% about 3.5 years ago.

        • SummerMan on 14/08/2013 - 22:08

          Great. I think I did recommend a friend to go for Wespac and even she had a little less than 100K she could negotiate and get a bit more.

          This give us a good warning sign. If the interest bounce back to that high level, those who lock in at 5% would be sorry.

        • chloden on 14/08/2013 - 22:09
          +3

          I received a letter from Westpac today telling me that my term deposits have expired from that deal. It is funny now to read those comments about 5 years being too long. I wish I had locked it in for a couple more

        • brett-au on 14/08/2013 - 22:25
          +2

          Curses. If only I knew about ozbargain back then.

          Although all my money would have been in a term deposit and I wouldn't be able to buy anything on this site for another couple of months…

  • fchis on 14/08/2013 - 22:13
    +3

    Tax on savings interest is the largest drawback of our tax system as it gives less incentive for people to save $$. Our government encourages people to borrow more money from banks I.e. negative gearing and ultimately chasing for higher housing prices. Many people now find themselves work as bank slaves by repaying large sum of mortgage for a very long period of time.

    • SummerMan on 14/08/2013 - 22:17
      +2

      There was a labour policy to help on the first 1K or so but that was scrapped.

      The alternative is to put it into your super.

      But I don't find a good return (when risk is taken into account) on super and feel that in a long run I will be better taking care of my own money.

      • fchis on 14/08/2013 - 22:30
        +1

        Yes, same here. I would rather put my super in a long term deposit than those Super companies taking out some of my money to pay compulsory insurance every year which I don't need. Not to mention their management funds are not performing well. Now, the government makes the mandatory 12% super as compulsory policy that is out of my pay that I won't be able to touch my money till retirement.

        • SummerMan on 14/08/2013 - 22:33

          I'm considering ING super but still haven't make a move yet.

          There is an EXIT fee and I don't think it is the right time to get out of my investment option yet. Also, I'm waiting for ING to offer $50 again for the move to their super.

      • Memo14 on 14/08/2013 - 22:43

        You can take of your own money within a Self Managed Super Fund which has worked well for me with only 15% tax on income . Super in itself is not a investment but a medium.I did in fact lock in with Westpac for 8% pa paid monthly for 5 years. Which is a great return for almost zero risk. Under current conditions 5% is a good return again for low risk.

        • fchis on 14/08/2013 - 22:46

          Yep, this is a good option and I've been thinking to set one up next year :)

        • SummerMan on 14/08/2013 - 22:49
          +1

          SMSF requires a sizeable amount to start with. It's good for many people but not for me at the moment.

        • Memo14 on 14/08/2013 - 23:02
          +2

          It depends on the cost of auditing and tax return for the fund . I am with ESUPERFUND free setup and free return for first year then they charge only $699 per annum regardless of number of transactions or amount of money in the fund.
          So if you had $70,000 in the fund its costing you 1% only . As your fund grows or for funds with more money it costs less than 1% to operate the fund.

  • scottb721 on 14/08/2013 - 22:22
    +6

    I'd get bigger returns by not visiting ozbargain continually.

  • Cluster on 14/08/2013 - 23:31
    +1

    It is possible to sometimes beat the banks. In mid 2010 I opened a 5 year term deposit with Rabobank paying 7.1% monthly or 7.3% yearly. I took the monthly option. Three years later I'm getting more interest from the TD than I'm paying on my recently started mortgage after tax. Rabo thought rates would stay high in mid 2010 while I had a different view.

    If Ozbargainers think rates will continue to stay low (USA, EU, etc have been on emergency interest rates for many years now) then a 5% lock in option for 5 years could be a bargain.

    • rhino015 on 15/08/2013 - 13:19
      +1

      If Ozbargainers think rates will continue to stay low (USA, EU, etc have been on emergency interest rates for many years now) then a 5% lock in option for 5 years could be a bargain.

      True. But then again maybe the banks are thinking the opposite and that's why they are offering these deals now?

  • vjknight on 15/08/2013 - 07:16
    +1

    if eligible consider a FHSA (first home saver).

    if over 50, never owned a home and never will, and need to put some retirement money away, it is a great option.

    at age 60, its yours to take, no questions asked.
    17% provided on the contributions you make.
    15% tax on the interest.

    there are limits on balance, and maximum advantage on the contributions is limited too.

    http://www.firsthomesaver.com.au/

    • SummerMan on 15/08/2013 - 07:26

      I have looked at this option but the interest rate is quite low compare to the rest of the market.

      Yes, it will be great if you can get the tax concession and government contribution to subsidise the low rate…

      and yes you would need to be close to retirement age to get the cash benefit from FHSA.

  • INFIDEL on 15/08/2013 - 11:24
    +1

    $100 from HSBC http://www.ozbargain.com.au/node/78939

    OP: Expired deal posted 03/09/2012

    • SummerMan on 15/08/2013 - 12:39

      Thanks brucefromaustralia. I'll mark it as expired.

      http://webcache.googleusercontent.com/search?q=cache:B3xe_5F…

      As of 17 Jul 2013 13:49:30 GMT

      Open an HSBC Day to Day account and receive $20 a month, up to $100#. Simply make monthly deposits of $5,000 or more during the first 5 months.

      To be eligible for the $20 offer you must meet the minimum deposit criteria by the last business day of the calendar month. Your $20 will be credited to the account within the first 5 business days of the subsequent month. Offer valid as at 7-Dec-12 and subject to change.

      I believe that the deal will come back soon and may be better because citi is now giving $120.

  • demiurge on 15/08/2013 - 13:52

    4 years is a long long time to have your money tied down in a TD.

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