Term Deposits

Diversified investment strategies.

In a volatile market and as part of a diversified investment strategy, term deposits offer a safer and low risk investment option compared to property and shares.

While a term deposit gives you the ability to earn a higher interest rate than in a standard transactional or savings account, it also gives you security in volatile times.

Offered through banks, building societies, credit unions and other prudentially regulated institutions a term deposit is an ideal investment tool for investors who want certainty. As the interest rate is fixed for the duration of the term selected, it gives you the peace of mind of knowing exactly how much interest you will earn over the term of the investment.

Whereas term deposits provide guaranteed returns, when you lock into a three or five-year term deposit, there’s no way of knowing whether the particular interest rate will be attractive over that entire period of time.

With fluctuations in interest rates, this could mean that you’re locked into a comparatively meagre rate even one year into the fixed term.

Portfolio approach

At Countplus mbt we take a portfolio approach which means splitting the balance of your investment over a range of term deposits including one, two three and five-year terms. When the one-year term deposits are due to roll over, we can then select the term that offers the best return. This portfolio approach means that some of your money will be available to be reinvested in the term that offers the best rate.

If you like the sound of our approach to term deposits as part of a diversified investment strategy, why don’t you contact your Countplus mbt financial adviser for an obligation free meeting.