Term Deposits – Award
If you have a large amount of money burning a hole in your pocket, parking it in a term deposit is still a favoured method of investment. But term deposits vary widely to cater for a range of customer needs. The interest rates, too, are up and down. That’s why it’s important to check all rates in the market place before committing your cash for the term of your choice.While acknowledging that term deposits really are all about the money, our research also factors in other features that round out a bank’s suite of term deposit offerings. These include features such as how you can open an account with the institution you would like to use for your term deposit, and interest payment options and penalties in the event of early withdrawal.
We also look at how maturity is handled – what sort of reminder or instruction do you receive, and how much it costs at maturity to transfer your money to another financial institution. Is there a free bank cheque or free direct credit? Or, if you decide to stay with the same institution, will you be rewarded with a rollover bonus?
While the interest rate is the interest rate for all to see, many of the features of term deposits are not top of mind for customers until the moment they are needed. A term deposit that considers the customer and makes it easy for them at every step guarantees a fuss-free and helpful experience – enhancing the desire to do repeat business with that particular financial institution.
To determine the 2015 Bank of the Year and Customer Owned Institution of the Year for Term Deposits, CANSTAR researched 99 term deposits offered by 79 providers. We compared each product across two term deposit amounts, $10K and $75K and six weighted term tiers. Our full methodology document is at the end of this report.
We hope you benefit from our extensive research, aimed at making these products more transparent.