Online bank accounts or term deposits?
Thursday August 21, 2008
Will online bank accounts be better suited to your needs, or are term deposits a better option. It largely depends on what you intend to use your money for and how long you can go without it.
If you are retiring soon and are trying to maximise your retirement savings, then the choice between online bank accounts and term deposits could be difficult. Term deposits will often have higher interest rates than online bank accounts, but this is at the cost of being unable to access your funds. While it is likely that term deposits will earn you more than online bank accounts, you will lose some flexibility in deciding the time you wish to retire.
If you are saving for a specific purpose and intend to have ongoing savings for some time, a mixture of using online bank accounts as well as term deposits could be the best option for you. Online savings accounts with high interest rates can compare well with the interest rates of term deposits these days, but still allow you to have some access to your funds. There are even online bank accounts that allow you to withdraw funds and still earn interest for that month.
Please visit our comparison page to compare savings and high interest accounts and feel free to browse our site to read more about online bank accounts.
