A simple, secure, lower-risk investment option

A term deposit is cash deposited for a fixed term and at a fixed rate, at a financial institution of your choice. They offer a secure and lower-risk investment option for all investors, including Self Managed Super Funds (SMSFs) within their fixed interest asset allocation, and Not-for-Profit organisations looking to match their cash flow with term deposit maturity dates.

The advantages of term deposits include capital stability, guaranteed regular income, portfolio diversification and protection against loss in a cyclical downturn.

They also offer:

• Higher interest rates than a standard call account
• A fixed interest rate, which is particularly attractive when interest rates are falling
• A choice of investment terms from one month to five years
• An Australian Government Guarantee of $250,000 per person per institution
• No set up fees
• Low brokerage.

There are some downsides:

• You cannot access funds for an agreed period until the term deposit has matured
• If you do seek to withdraw all or some of the funds in an emergency situation, penalties apply
• The term deposit interest rate return is lower than other Interest Rate Securities (IRS) like corporate bonds and hybrid securities
• A lower dollar investment amount typically attracts lower interest rates.

How do we help?

Once your account is established, we do all the organisation and paperwork for you. We identify the most competitive interest rate offered by banking and deposit-taking institutions in Australia for the term you require. We then take ongoing transactional instructions, and follow up at the term deposit's maturity date. All you need to do is supply a simple instruction to rollover, mature or change institutions.

This service becomes even more valuable when you’re juggling a range of portfolio maturities and multiple bank dealings.

It is our business to monitor the fixed interest market each day. Burrell produces a Fixed Interest Market report specifying a range of banks, interest rates, minimum amounts and maturities available. We'll send you this report in our Burrell Bourse and we'll also communicate any special rates that become available.