Frequently Asked Questions

Popular FAQs

• What is a term deposit?
• What are the features of a term deposit?
• Why do term deposits only pay a low rate of interest?
• Is term deposit money guaranteed?
• What are the alternatives to a term deposit?
• What are the risks of a term deposit?
• Can I cancel a term deposit early and is there fee's?

Basics

• Is a term deposit an investment?
• Who offers term deposits?
• What’s the difference between a term deposit and a savings account?

Features

• Is there a minimum term deposit amount?
• Is there a maximum term deposit amount?

Risks

• Is a term deposit a safe investment?
• Where do term deposits sit on the risk spectrum?
• What would need to happen for me to not get my term deposit money back?

Rates

• Are term deposit rates fixed?
• What if interest rates change?
• Where can I find the best term deposit rates?
• Why do banks say ‘contact us’ if the amount is over a certain level?

Financial Claims Scheme

• What is the Financial Claims Scheme?
• Are term deposits ‘guaranteed’ by the Government?

Alternatives

• What alternatives are there to term deposits for higher returns?