Would you encourage me to put my money on time deposits?
By marisriel
@marisriel (1156)
Philippines
3 responses
@James72 (26790)
• Australia
2 Sep 08
I am assuming when you say "time deposits" youe are referring to fixed term bank deposits yes? These are generally very safe if you set up a term deposit with a reputable bank and you do know exactly what you get up front; but the return overall is generally less than a lot of other options such as managed funds etc. It all comes down to whether you are after safe and easy, or prepared to take a slightly higher risk. In my opinion people shoud always look at diversification and hedge their bets by investing in multiple sources.
@marisriel (1156)
• Philippines
2 Sep 08
have you ever tried to do time deposits? we are actually wanting to try out the minimum days that our bank is offering, a one month fixed term.
1 person likes this
@James72 (26790)
• Australia
2 Sep 08
I have done this in the past, yes. My advice if you are looking at doing this is to look at a term of 6 months or more that offers COMPOUND interest and not just interest on the original deposit amount over the term. You also need to know what penalties may be applicable if you have to cancel the term deposit within the term. A one month deposit in a fixed term account is certainly better than just having the money in a normal savings account; but the percentage interest rate is generally pretty low compared to longer term deposits.
Check this link out as it may help:
http://au.pfinance.yahoo.com/banking/term-deposits/tips_tricks/
@marisriel (1156)
• Philippines
6 Sep 08
you have really done your homework james:-) thanks for the link. i will check on it and definitely consider a fixed term deposit with a not so long term maybe a month will do.
1 person likes this
@curiousman (2427)
• Malaysia
2 Sep 08
May I know what that is? I have never heard of time deposits.
