suncorp has 7.25% term deposit for 36months for amounts over 10k
7.25% Term Deposit from Suncorp ($10k/36 Months)
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36mths?? geezez.. i dont think thats, that good a deal….
yearly payment of interest makes it less worth while
Three years is a long time. First thing that came to my mind is that the bank is probably trying to lock in the rate at times when it is expected to increase further. However, that was the consensus a month ago. Now, with the financial markets performing so badly, a rate cut is expected in the near future to sustain economic growth. I would say, lock it in Eddie.
err. No. you won't have rate cuts any time soon. the reserve bank operates its monetary policy with an aim to maintain inflation within a 2-3% target band over a medium term outlook (or something like this). Just because of some shocks emanating from europe and temporarily higher short-term risk premiums due to the announcement/controversy of the new mining tax, it's unlikely that you'll be seeing a u-turn in monetary policy and actual rate cuts any time soon.
It depends. I remember locking in an 8.5% term deposit with ING Direct in August 2008, just when rates started to fall. And fall they did, where by mid 2009 savers were lucky to get 5% on a 1 year term deposit.
The 90 day bank bill futures can turn in an instant. This rate really dictates what the cost of borrowing is, not the RBA rate which the media is fixated with.
The other thing that potential customers should remember is that the Federal Government's bank deposit guarantee expires in October 2011. Locking money away in a small bank past that date is not a zero risk proposition.
Nope…i don't care if it does expire…the fact that they did it at all has set a precedent that they will bail out depositors….it's extremely unlikely that the govt will not step in again if a bank is close to collapse.
suncorp maybe small…but it's still a bank…
last time the govt bailed out even building societies and credit unions…so the risk is negligible in my eyes.
Small bank? It's 5th largest - far from some minnow.
3 years too long for me.. 1 year would be fine
Can't you receive your interest after the first year then end it early?
Yes
can you? What would the penalty be in this scenario?
To determine if this is a bargain - i think the question we need to ask 2 questions:
1) is this the best offer out there given its conditions eg 3 years and interest paid annually.
2) is it a reliable vendor (ie safe bank).
whether it is too long, too short or uses to much pink on its website is irrelevant to whether it is a bargain. It may not be attractive given your own personal circumstances but that is completely irrevelant.
I dont need a laptop but if someone puts up a bargain (given price and features and vendor) i will still give it a positive tick or just ignore it.
why do people get so confused about a term deposit or other bank offering - they are simply products people. try not to get so emotional about it all and you can make intelligent (business like) decisions based on careful and considered analysis.
And i agree that all govts will bail out banks and in Ausralia we have the financial fire power to do so for a long time after other countries have fallen over so yes this is a safe vendor to put ones money in. Unless of course there could be some sort of illegal or underhand activity.
they do offer shorter periods to receive interest but the discount are heavier than competitive offers i have seen:
Monthly interest payments are available on all terms from 2-60 months at 0.30% p.a. below the rates listed in the table above.
Quarterly interest payments are available on all terms 6-60 months at 0.25% p.a. below the rates listed in the table above.
Semi-annual interest payments are available on all terms 12-60 months, at 0.15% p.a. below the rates listed in the table above.
Yearly interest payments are available on terms 18-60 months.
An Interest adjustment will apply for early withdrawals.
BTW, it is incredibly difficult to predict if interest rates (90 day bank bill or fixed term deposits) will go up or down. A useful guide maybe to compare the offering with the mean(average) over the last 10-15 years and how much it is above/below that mean.
Where would you find the mean Term Deposit Rates over the last 10-15 Years?
http://www.rba.gov.au/statistics/tables/xls/f04hist.xls (this is a direct link to excel spreadsheet from RBA)
Data from 1982. I managed to produce a graph easily enough but cant seem to upload it here
Thanks
Good deal, but I guess that depends on how the rates go in the next 3 years.