Your guide to Term Deposit Laddering

Boost your savings by using a simple strategy called laddering. Instead of putting all your money in one Term Deposit, spread it across different Term Deposits with various lengths. This way, you can maximize interest earnings over the long term. Let's look at the potential benefits to help you decide if this strategy is right for you.

1. Improve access to your money

With Term Deposit Laddering, a portion of your investment becomes available for withdrawal or reinvestment at regular intervals as each Term Deposit matures. This provides you with peace of mind flexibility, allowing you to access some or all of your money on a regular basis.

2. Reduce your risk

By spreading out the maturity dates of your Term Deposits, you reduce the risk of having all your money locked into a single investment for a long period. If interest rates change, you can take advantage of higher rates as your Term Deposits mature at different times.

3. Potential for higher returns

By laddering your Term Deposits, you can capture the benefit of higher interest rates if they increase over time. Some Term Deposits may offer higher rates for longer terms, so having a mix of short-term and long-term Term Deposits can potentially increase your overall profit.

4. Earn regular income

If you rely on Term Deposits for income, laddering allows you to create a steady stream of cash by having Term Deposits mature at different times. This simple strategy helps maintain a consistent income, similar to how you might receive regular paychecks.

5. Simplicity and Stability

Term Deposit Laddering is a straightforward strategy that doesn't require constant monitoring or active management. It provides a stable and predictable investment approach, making it suitable for conservative investors who prioritize keeping their money safe.

Laddering is a strategy that balances safety and returns while offering a simple and reliable approach to investing, and no risk of initial investment loss.

Have a question - or ready to get started with Term Deposit Laddering?