Planning for the future to ensure that later life is enjoyable is something many Australians dream of. After working hard, it’s only fair and proper that those who toil remain comfortable and can enjoy occasional treats while knowing that there will not be any worries about paying bills or having to cut back on spending on the weekly shopping trip.
There are several ways to ensure this, with some taking big risks by dabbling in stocks and shares, which can end in disappointment and consequent struggles. The old tried and tested formula of working hard and saving money always bears fruit, but especially so for those who make the smart choice of investing in bank term deposits through the right institution maybe as they get close to retirement, which is a great idea for the following 6 great reasons.
- Its quite simple. Term deposits are a sound investment with guaranteed returns. Why take risks after grafting away over many years, when there is a way to watch money grow without any stress and that provides peace of mind? Especially when finding a bank that provides high-interest rates in return for leaving the money with them.
- Additional security is provided by being able to calculate the interest daily, while there are no accounting fees accrued by the bank. There are various terms available for different lengths of time, which suit those who want to make a quick profit, through to those who are prepared to wait to feel the benefits. The cash may even be spent on a winter holiday in Thailand.
- The best term deposits leave the investor in control, as they have a variety of interest payment options available. Those who wish to consider such incentives should look to invest with a reputable financial organisation, such as one that has been voted as Australia’s customer-owned bank of the year. One that is protected under the Financial Claims Scheme up to $250,000 per customer.
- The FCS is backed up by the Australian Government, which provides protection to customers of a bank, and guarantees quick access in the unlikely event that the bank fails. In short, there is no danger of an investment being lost owing to the mishandling of the funds by any bank.
- Having the option of being able to be paid out monthly or in a lump sum and the end of the agreed term offers flexibility to pay bills or to save for something like a holiday or home refurbishment. Those that wait will receive a better rate of interest than those who take it out in instalments. It may allow for a weekend retreat in a stunning historical national park.
- Choosing the right bank to invest with allows for SMSF’s to be used in term deposits, which provide an online calculator on their website.
A bank term deposit is guaranteed to see the money grow with government assurance. They are quick and easy to put in place with no hassle.
