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Double your deposit in half the time - Part 4

This week commences part 4 of our 7 part series on ways to save for a home deposit (which are excellent tips, no matter what you're saving for)! We share an article by Nila Sweeney, Managing Editor of Australia’s leading property investment magazine and active property investor herself, who has been writing about the Australian property markets for more than eight years. Nila's gives you the next step for:

When you are ready to do some serious saving

Once you have saved a few thousand it's time to move to the next stage of your saving strategy - the term deposit. While you don't have the same access to your money as you do with at call accounts, the interest rate is better which means you are saving up for that magical home loan deposit a whole lot faster.

These accounts typically offer a fixed interest rate for a fixed deposit amount over a fixed term. What this means is that you put your money into an account and effectively leave it there for an agreed term - anything from seven days to five or more years. You are able to access it if you really need the money but generally you only have access at the expiration of the term.


  • The idea of locking away your money at first might seem a little unattractive, but there are a number of good reasons for doing it.

  • The very reason which makes a term deposit appear so unattractive is the very reason which makes it useful - your money is locked away, safe from any temptation.

  • When you open a term deposit account, the interest rate is largely determined by the length of time you agree to leave you money in there. Generally, the longer the term the higher the interest rate.

  • There are usually no account keeping fees. As you cannot put money in or take money out of the account, there are also no transaction fees.

  • You can arrange to have your term deposit roll over to another term deposit automatically, avoiding any hassles of having to withdraw your money and then reinvest it.

  • You choose the term you want.

  • Because your rate will be fixed for whatever term you decide to fix it for, if interest rates in the market go down, your rate won't budge.

  • On the downside, if you need your money for whatever reason before the term is finished you will be penalised for withdrawing it.

  • Be warned though, some term deposits offer a portion of the deposited amount at call but tend to offer lower interest rates than standard term deposits.

For a confidential discussion with us about budgeting, please contact us on 03 9935 5233 or

Our offices are centrally located at Normanby Chambers, 430 Little Collins Street in Melbourne CBD.

This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. This document, including all tax and super calculations, has been prepared using legislation in place as at 1 July 2017.

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