You might be tempted to go with one of the big four banks because of name recognition or because you already have another product with them. → Explore: How does a term deposit work? Should I consider a term deposit from the big four? This means the investment return over time is harder to predict. But unlike term deposits, you many need to meet certain conditions, and the interest rate could change at any time based on market conditions.
So if you want more flexibility, you might want to consider a high-interest savings account instead. If you decide to take out your money early, you may be charged a penalty fee or earn a reduced rate of interest. Given the interest rate is fixed for the term of the investment, you know in advance how much you will earn at the end of the term.
When your term deposit matures at the end of the fixed term, you can either roll over all your invested money into a new term deposit – likely at a new interest rate – or you can withdraw some or all of the money.
