Term deposits and high-interest savings accounts are both low-risk, but they suit different needs.
Term deposit
- Fixed rate for the whole term.
- Money is locked until maturity.
- Best when you have a lump sum you won't need for a while and want a guaranteed return.
High-interest savings account
- Variable rate that can change at any time.
- Money stays accessible — withdraw any time.
- Often the headline rate is a bonus rate with monthly conditions (e.g. deposit a minimum, grow your balance).
How to choose
Want certainty and don't need the cash? A term deposit locks in your rate. Want flexibility, or think rates might rise? A savings account keeps your options open. Many savers use both — a savings account for the emergency buffer, a term deposit for money they can set aside.