Get 8.70% p.a. with Suncorp 12 month term deposits.
At a glance…
Keep in mind that depositing at these rates interest is paid annually ie no compounding of the interest
So 100000 at the end of 12 months gives you $8700.
If you take a 6 month option using say Bankwest's 8.5% you will get $4250
Then you reinvest all the money for 6 months that being $104250 you will get $4430 Giving a total interest for 12 months of $8680 only $20 less.
So the rates are almost the same.
If you expect interest rates to drop then locking in for a year is better
If you expect interest rates to rise, then the shorter term would be better.
As always, an insightful comment!
Thanks ozpete for the explanation! We'll need comment rating system to highlight great comments like this :)
Yes, but bankwest's product pays interest monthly… I've made a new post to make clear bankwest's offering.
Great Rate for a Term Deposit. For smaller saving, BankWest's Regular Saver is at 9%
You can only put in $500 and $500 per month though BUT it compounds those amounts.