Give your budget some certainty with term deposits and limited access savings accounts

If your savings need some discipline, certainty or simply a sense of security, term deposits and limited access savings accounts can be the right solution

Term deposits and limited access savings accounts can be used to earn interest on your money and plan for your financial goals while keeping impulse spending in check by locking your money away securely.

Term deposits and savings accounts have many similarities but also some fundamental differences. They each offer benefits that might suit your needs at different stages along your savings journey.

Why use a term deposit?

With a term deposit, you lock away an amount of money for a set period of time (the ‘term’) and earn interest on it.

Term deposits can be a great tool if you struggle with the temptation to dip into your savings. They are a low-risk way to invest your money for a set amount of time and earn a fixed rate of interest, which is excellent when you want certainty about the interest you’ll earn. Better still, as your money is locked away for the period of your choosing, a term deposit can also help to control impulse spending.

Term Deposits are low maintenance because once they’re set up, you’ll rarely have to touch them until maturity.

Having your money tucked away in a term deposit can give you certainty and protect you when the returns from other savings accounts are falling. On the flipside, having money stashed away in a term deposit can moderate the effects of inflation by putting your hard earned to work by taking advantage of higher interest rates longer-term.

At Community First, you can open a term deposit with as little as $5,000 for a minimum term of 3 months. There’s also options to receive interest on maturity, annually or monthly, depending on your chosen term.

At the moment we are offering a 3.05%p.a.* interest rate on term deposits for 13 months with interest paid on maturity. To find out more about our Term Deposits, click here.

What is a limited access savings account?

Rising interest rates is good news for savers, who can access a range of different accounts with Community First to meet their savings needs. Generally speaking, interest rates paid on savings accounts are variable, so this can mean more volatility in the amount of interest earned over a set time period in comparison to a term deposit.

Limited access savings accounts such as Community First’s Christmas Cracker account allow you to add to your savings as often as you like, except your funds are out of reach until the three months around Christmas, meaning you’re more likely to keep your savings in-tact so you can have a cracker of a Christmas. Find out more about this account here.

Save for end of year expenses with a Christmas Cracker account

A limited access savings account such as our Christmas Cracker account is a secure strategy to prepare for the big cost of Christmas of gifts and travel, avoiding the festive dread.

Having limited access means that you are less likely to dip into your savings (unless you really need to). Being only able to access your money around Christmas (November to January), means you can stay accountable and on track with your Yuletide goals.

Safe and Secure

The Australian Government’s Financial Claims Scheme guarantee is a government-backed safety net for deposits of up to $250,000 per account holder, per institution in the unlikely event that your bank, credit union or building society fails. [1][2] This means that you can have confidence depositing your money, and having it start earning interest for you.

Calculate your savings

If you’re keen to see how your future savings could look with Savings accounts and Term Deposits, you can use our Deposit Planner Calculator.

You can see how different interest rates, savings terms and interest payment frequencies can impact your projected savings.

1. APRA
2. MoneySmart

*Offer terms and conditions: *Rate is effective as at 15/07/2022 and is subject to change without notice. If you seek an early release of your term deposit prior to its maturity date, an early withdrawal interest penalty may apply. We may require up to 7 days written notice of your intention to make an early withdrawal. Offer can be withdrawn at any time. Offer is for new term deposits and is only eligible for funds that have not been with Community First or Easy Street in the last 14 days from the date of enquiry and where the offer conditions are met.

Terms and conditions, fees and charges apply.

Community First Credit Union LimitedABN 80 087 649 938 | Operating as Community First Bank | AFSL and Australian credit licence 231204| BSB 512-170