Laddering Strategy for Term Deposits

In a world of rapidly changing interest rates, it's an opportunity to explore different ways to make the most of your savings, like term deposit laddering.

Term deposits allow you to lock in a fixed interest rate for a set amount of money over an agreed period. At QBANK, we've got a range of returns based on how long and how much you want to invest, starting with a minimum deposit of $2,000. You can choose from a range of terms from three months to five years to suit your financial plan.

When interest rates are fluctuating, you might wonder how to get the best return on your term deposits.

Recently, savings and term deposit rates have been on the rise. It's got savers thinking about what to do and how to make the most of it. Term deposit laddering is an option that might align with your financial goals. It's a technique where investors split their money and invest it in different term deposits at different times.

Here's how it works: Instead of investing in one big term deposit with a single maturity date, the investor creates multiple deposits that mature at various intervals. This gives them the flexibility to access portions of the investment at different times. Interest rates can rise and fall, so it’s important to consider your own circumstances and what you are aiming to achieve in the short, medium, and long term.

Let's look at an example: say you've got $25,000 to invest. With term deposit laddering, you could put $5,000 in a 1-year term, and a further $5,000 in 2,3,4 and 5-year terms respectively. As each deposit reaches maturity, you can either take the money out or reinvest it in a new term with the current rate. It all depends on what you need at that time – keep the ball rolling or use the money for other things.



Remember, pick terms and amounts that match your finances. If you want cash more often for expenses or income, consider shorter laddering. Just know that there's often a notice period if you want to break your term deposit before it matures. And you might end up with less interest if you withdraw early. So, plan ahead and think about what funds you might need for things like big bills or buying property.


The beauty of term deposit laddering is that you spread your money around. Over time, this strategy can earn you a return on your investment while staying adaptable to changing interest rates and your goals and lifestyle. And at QBANK, we're here to help you get the most out of your savings!

Click here to find out more about our term deposit options.

This information is general in nature and does not take into account your objectives, financial situation or needs, therefore, you should consider whether this information is appropriate for your personal circumstances before making a financial decision.