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How to win the savings battle

Is something always getting in the way of you and your saving efforts? Two words, term deposit.

THE number-one enemy of saving is temptation, and something that can take temptation out of the equation is a term deposit. These high interest investments allow you to lock away a lump sum of money, which gathers interest for a fixed time period. This means that before you get your investment back, you'll know exactly how much your term deposit can earn for you.
Term deposits shake up the mentality that you must save periodically to reach your goals, squirreling away spare cash in a savings account every week. Instead, term deposits are useful for people who enjoy having a low-maintenance savings product that they can rely on to deliver results.
For example, putting away $5000 in a 90-day term deposit will guarantee you about $73 in interest at maturity with RateCity's best rate of 5.80 percent by ME Bank, no matter how much interest rates change after you deposit your money. While this gives you a lucky break when rates are declining, it also means you may miss out on rate rises.
You can even have multiple term deposits growing your money at the same time. Savvy savers can use this method to save for the short term, or even keep cash earning interest for years to meet your long-term savings goals.
And if you're the impulsive type, term deposits give you an incentive to kick bad habits by charging interest rate penalties or fees when you withdraw your money early. This is why it's important to make sure that your term deposit cash is something you can live without until you get it back.
Often competing with online savings accounts, term deposits can sometimes offer rates that you simply can't pass up, so use your impulsive tendencies for good by comparing the highest rates and securing your investment.
After all, everyone indulges in buying themselves a present here and there, so why not make your next gift a savings miracle by letting your money take care of your future?
Michelle Hutchison is a consumer advocate at RateCity. RateCity is a privately owned company in partnership with ninemsn, publisher of the Australian Women's Weekly website. The above information is general only and does not take into account your objectives, financial situation or needs.

Your say: Do you have any tips and tricks that help you saving money? Email us on openline@bauer-media.com.au

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