You can also lock your money away for as little as six, or even twelve months. Short term deposits: A three month term deposit sits under the shorter term umbrella. It really comes down to your financial goals and aspirations, as to which type of term deposit works well for you.With that in mind, let’s have a look at the pros and cons of both. Neither are necessarily better than the other. This refers to the duration of time that you will invest your savings.

There are two main types of term deposits: short and long. What are the pros and cons of a 3 month term deposit? Deposits are covered up to $250,000 with authorised deposit-taking institutions. This scheme provides support in the event that your bank fails.

Finally, all providers listed on Mozo’s website are backed by the Australian government’s financial claims guarantee scheme. On top of this, a number of providers often offer special offers on three month terms. Plus, while shorter terms tend to come with slightly lower interest rates, you can still find a fairly competitive rate with the likes of Judo Bank, Bank of Sydney and Citi. Before you know it your investment will have grown! Why choose a 3 month term deposit?Ī three month term deposit allows you to lock funds away for 90 days and earns you a nice bonus in the form of interest. It could be a great option if you want to access your money fairly soon, or feel you can’t commit to a longer term. This short term can be a great place to keep your funds and accumulate interest at the same time. A 3 month term deposit is a short term deposit, offered by many banks.

Comparison of bank term deposit rates