Interest rates are low, which is good news for home owners with mortgages but not great for people with cash or savings to invest. Finding a great rate of interest on a term deposit account is challenging and can be time consuming. With concerns about the global financial environment as well, there are a number of experts recommending a shift towards liquid assets – not locking money in for long periods or into complex schemes and managed funds. The challenge, then, has an additional dimension for some people: a great rate and a short term, so that your money can be accessed easily and quickly in a shorter timeframe if and when it suddenly becomes necessary.
There are a number of online comparison engines and ranking organisations that specialise in financial services products – such as Canstar, InfoChoice, MyRate – that Australians can refer to for independent advice and to create a shortlist of possible providers. From there, the laborious process of contacting each bank or investment agent begins, so you can establish whether the deals still stand and what the details of each term deposit conditions are.
This can take time and patience, but is obviously worth the hassle if you can find a great product and get a great rate of interest on your term deposit.
The catch, though, is that you are a retail customer looking for a retail rate of interest, and there may be a better rate available to you if you know how to ask the right people the right questions. Always assume the advertised rate is the starting point for a conversation – not the way it has to be. Some financial institutions will stick to their published rate and others, you may find, will be keen enough to do business with you to offer you a better deal.
Depending on the sum you plan to put into a term deposit, this investigation process may be more or less attractive to you. Everything worth having takes time, right? Well, with the launch of a new service called DealMax that may no longer be the case. To fast track your research phase, you can use the DealMax system to directly approach famous-name lenders and banks to ask them for their best rate of interest on your term deposit. It’s a unique approach and new to Australia. Your negotiating power is a result of the relationships DealMax has established with well-known financial institutions.
Of course, you will still want to do your own, more manual research to confirm that the deal you go for really is the best available at the time, but having some extra tools to use and make life a bit easier is certainly attractive. After all, it’s your money, and putting it to work as hard as possible for you makes sense and cents.
Janice brook is studying accounting at UTS, she is final year student and her passion is writing content around business and financial market changes. She would say do some internet research to find best interest rate on term deposits and for that browse DealMax online!!!