With interest rates increasing with the OCR, this is something to be aware of. How often is interest calculated? The best term deposits pay interest monthly, meaning it compounds, while others pay interest ‘at maturity’.You’ll also need to meet the minimum deposit threshold, which can be $1,000, $2,000 or as high as $100,000. three months or two years) from the most stable bank. The best term deposit will likely have the highest interest rate for the term you want to invest (i.e. There are too many scams out there to risk it, as you'll see in the video: Remember, if it sounds too good to be true, or you have a funny feeling or anything else, do not proceed.MoneyHub Founder Christopher Walsh explains this problem in a video that lists what you can do to avoid scams altogether.Then, phone calls are made to lure the money to fake New Zealand and/or overseas-based companies promising returns above those you'll receive from term deposits. not MoneyHub) and entice people to enter their contact details. We believe the scams start as adverts on third-party websites (e.g.We are aware New Zealanders are being targeted by scammers hoping to get their hands on money otherwise destined for legitimate term deposits.Our guide to peer to peer lending explains the pros and cons and everything you need to know about this topic. To learn more, we suggest visiting the following sites: Peer lenders offer as much as 7.00% p.a (or more). Peer to Peer lenders, such as Lending Crowd and Squirrel, offer attractive prospects if you're prepared to invest in secured loans for personal and business borrowers. By comparison, a savings account allows you to withdraw money at any time. This is usually a loss of interest rather than any fee taken from your term deposit investment. If you need to access your money, a penalty will be applied. Withdrawals: Term deposits are, as their name states, fixed for a ‘term’.Savings accounts, in most cases, offer lower interest rates than term deposits because you can access your money at any time. A savings account offers a floating interest rate, meaning it can change at any time.

Interest rates will usually be higher the longer the term is, as banks pay more for the certainty of re-lending your money for longer.

Interest rates: A term deposit offers a fixed interest rate for the life of your investment.

There are two key differences, with term deposits and savings accounts offering unique advantages.

Rabo bank term deposit rates