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If you’re looking to save up for something special, savings accounts and term deposits can help. Here we discuss the features and benefits of both accounts.
When you’re saving, it can help to keep your funds separate from your day-to-day account. This keeps your money tucked away and prevents you from spending. In addition, you can earn interest on your savings. Two popular ways to earn interest are through the use of savings accounts and term deposits, which we offer a variety of. Here we’ll explain some key differences and benefits of savings accounts and term deposits.
Savings accounts
Savings accounts are a good product to consider if it is your first time saving money, or you have a short-term goal. Your funds can easily be accessed and you can add money to your account at any time.
Types of savings accounts
We offer a range of savings accounts with varying interest rates depending on how often you wish to access your funds, how often you choose to deposit and what your savings goals are.
Benefits of savings accounts
We offer competitive interest rates on savings accounts. You can deposit money to these accounts regularly and watch your investment grow. When interest is paid, you have the option to spend or reinvest into your account.
You can earn bonus interest on the Bonus Saver account by meeting monthly deposit requirements and not withdrawing from the account. With these savings accounts you can access your funds whenever you need to.
The First Home Bonus Saver account currently offers bonus interest when you deposit a minimum of $100 and no withdrawals are made in the calendar month. You can also receive $600 cash back1 if we fund your home loan.
Term deposits
Term deposits are an especially good option if you have a long-term savings goal and you don’t think you’re likely to dip into your account. The interest rate on a term deposit is often greater than that of a savings account too.
What is a term deposit?
A term deposit is an account in which your funds are deposited for a fixed period of time with a secure rate of return. You choose a lump sum to deposit and the length of time that it will be invested for. We also allow you to invest a chosen amount of money and most accounts have a minimum deposit of $500.
Types of term deposit accounts
Snow Star Credit Union offers a range of term deposit accounts with investment periods that range from 30 to 270 days and from 1 to 5 years.
Benefits of term deposits
Term deposits often offer a more competitive interest rate than a savings account and the peace of mind that the rate is secure for the entire term.
Accessing your money
Early withdrawals can incur a reduction of the interest earned and therefore reduce the final payment on your investment. After the product has reached maturity the funds can be withdrawn as needed.
An alternative term deposit
We also offer an ‘Interest First’ term deposit, where interest is paid in advance at the acceptance of the term deposit, allowing you to access the money straightaway. Find out more information about our Interest First Term Deposit here.
1. Cash back will be paid when a new home loan is funded by Snow Star Credit Union and the account was held for a minimum of twelve months with a balance of $5,000 maintained over three consecutive months immediately prior to lodging a home loan application.
