Money reveals the Best Term Deposits - Short Term for 2021

Term deposits are a safe and guaranteed way to set aside your savings. While they won't attract high interest rates like a savings account, they offer more than a transaction account. It has been a tough year for term deposit holders, though, as the Reserve Bank continued to lower interest rates in a bid to revive the economy from the pandemic.

With rates lower than they've ever been, the key attraction of a term deposit in a time of uncertainty is that your savings are protected by the federal government up to the value of $250,000. This means in the unlikely event that your bank collapses, you won't lose your money. The same can't be said of other investments promising higher income where your capital is at risk if the company goes belly-up.

This year's winners offer very competitive rates.

"Simplicity is a critical part of what Bankwest seeks to deliver to customers, and some of the enhancements we've made to our online term deposit reflect that, particularly in regard to the introduction of self-service and management features," says Louise Tovey, general manager, everyday banking, at Bankwest.

Over the past 12 months, the bank improved customers' experience through an online functionality that allowed them to reinvest and withdraw funds and close term deposits. This can be done without the need to contact Bankwest's customer support colleagues.

"These enhancements have proven popular, particularly during Covid-19, with use of these features increasing as customers take advantage of the ability to lock in a fixed rate of return amidst the uncertainty of a global pandemic," says Tovey.

Make sure you understand the cost of withdrawing your funds before the term ends.

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