What are term investments?
When you open a fixed term investment, you are effectively locking your money away for a chosen period and not accessing your funds until the end of the chosen term. In return, you will receive a guaranteed interest rate for the term you select, and you will, therefore, know exactly what your earnings will be. APS Savings offer 6, 12 or 24 month term investments with an interest rate starting at 3.5% p.a.
What are the benefits of term investments?
The main advantage of a term investment is that your interest rate is locked in so if interest rates drop during the term, you will continue to build your savings with the higher interest rate. Accumulating interest over fixed period is a long-term investment strategy and the best way to grow your wealth. A 4% p.a. Interest rate will allow you to skyrocket your savings without worrying about rates falling. Learn how to calculate your savings potential here.
Term investments are also a great option for those who have a tendency to dip into their savings accounts. By locking your money in a term investment, you will be able to reach your savings goals faster.
What happens after the term?
Once the term is up, you have the opportunity to re-invest with APS Savings for a further term with the current interest rate. At some banks, there is a small fee to rollover. At APS Savings, there are no fees for opening or closing an account.