Term Deposits

Term deposits - the basics

These are non-tradable fixed interest investments usually offering maturities ranging anywhere from a month to five years. A typical term deposit will pay interest on the investment amount on maturity date or annually on terms 1 year or over. If required, FIIG can negotiate alternative term deposit structures on behalf of the investor. Investors should read the terms and conditions of a term deposit investment before investing their funds.

Advantages

• Known rate of return
• A competitive market with many choices of investment rates and term deposit suppliers
• Relatively low investment risk (investments may be eligible for the Australian Government guarantee)

Disadvantages

• Funds locked in for the term of the deposit
• The suppliers of the term deposit may charge a fee for early withdrawal
• Early withdrawals are at the discretion of the ADI and will be subject to a 31 day notice period

Suitable for

• First time investors in the fixed income asset class
• Investors requiring certainty regarding return and maturity
• Investors with a short-term or long-term investment horizon
• All types of investors