Term Deposits Award

The ability to lock away money in an investment that pays a regular amount of interest has always held a certain appeal, typically among the more conservative investors seeking safe haven from the stormy seas of the stock market. Term deposits are also a useful vehicle for those saving for a long-term goal – real estate purchase, holiday or whatever – because of the added benefit that locking your money away removes the temptation to spend.

In today’s low-rate environment, it’s important to get the best deal so your money is working as hard as it can. Some go to extraordinary lengths to move their money around on a regular basis to wring as much interest out of the various banks as possible.Others take a ‘set and stay’ approach, preferring to deal with the one institution they are comfortable with.

There is no right or wrong approach to the way term deposits are used. Whatever works best for your circumstances usually is best.
There is more to term deposits than just the headline rate. The bank has to be easy to deal with by incorporating consumer-friendly features onto its term deposits. Things like access to your money without a break fee, prompt online transfer to another bank and effective notice of upcoming maturity dates are important to users of term deposits.

CANSTAR has researched 9 New Zealand banks that meet our strict criteria to find the top institution that delivers outstanding value in this area.