Term deposits vs investment funds
Thinking about investing in an ANZ Term Deposit or Investment Fund? While both are valid investment options, they have different needs in mind.
The best investment option for you depends on your particular situation, your timeframes and your financial goals – so taking the time to understand exactly what you’re investing in is crucial.
To help, here’s an overview of the key features and differences between ANZ Term Deposits and ANZ Investment Funds.
ANZ Term Deposits | ANZ Investment Funds | |
|---|---|---|
Access your money anytime | ✘ Your money is locked in for the term of your investment. You can apply for an early withdrawal if you’re suffering financial hardship, but an interest rate reduction will apply. | ✔ You can request to withdraw some or all of your money at any time—. There’s no fee for doing so. |
Fixed returns | ✔ Your interest rate is locked in for the whole term, so you know exactly what your return will be. | ✘ Your returns can vary depending on the performance of your fund. |
Fees | ✘ There are no fees to open a term deposit, and no monthly account maintenance or management fees. | ✔ You’ll pay an annual fund charge based on the fund you choose. |
Certainty over the return of your capital | ✔ The value of your capital is not subject to market performance. | ✘ The value of your investment can go up or down depending on the performance of your fund. If investment markets go down, you could lose some of your capital. If investment markets go up, your investment value will also go up. |
Diversification | ✘ ANZ Term Deposits are bank deposits, with no exposure to other types of investments. | ✔ ANZ Investment Funds invest in a wide range of assets including shares, listed property, fixed interest (such as bonds) and cash and cash equivalents. |
Potential for higher returns | ✘ You receive a fixed return for a fixed term. | ✔ Depending on which fund you invest in, there’s potential for higher returns over the long term. |
Volatility and risk | ✘ There are no ups and downs in value, offering the certainty of a fixed return. | ✔ The value of your investment can go up and down in line with the performance of your fund. |
Active management | ✘ ANZ Term Deposits are bank deposits and offers no investment flexibility. | ✔ The funds are actively managed by our experienced Investment Management team. Our active approach means we constantly monitor markets to identify what we believe are the best opportunities to optimise your investment. |
Weighing things up
When considering investing in an ANZ Term Deposit or Investment Funds, consider:
- Your investment timeframe – how long do you want to invest for? Investment funds typically have minimum recommended investment timeframes, depending on the type of fund and what it invests in. Term deposit terms range from six months to five years.
- Investment funds typically have higher volatility (fluctuations in the value of your investment) and higher risk than term deposits, but also offer the potential for higher returns.
Free investment advice
The future is bright when you feel confident about your investment choices. If you need help choosing the right investment option for you, talk to one of our ANZ Investment Advisers. They can provide free advice tailored to your individual situation.
Take the first step today – call us for a free, no-obligation chat with one of our qualified Investment Advisers on 0800 269 238. See ANZ’s financial advice provider disclosure.
Important information
Our financial advice provider statement has some important information you should know about ANZ and our financial advice services. Please take the time to read it.
Term deposits with ANZ are not deposits or liabilities of Australia and New Zealand Banking Group Limited. Australia and New Zealand Banking Group Limited does not stand behind or guarantee ANZ Bank New Zealand Limited.
Australian Prudential Regulatory Authority (APRA) regulates all Authorised Deposit Taking Institutions (ADI) in Australia. Australia and New Zealand Banking Group Limited is an ADI however ANZ Bank New Zealand Limited is not an ADI.
ANZ New Zealand Investments Limited ('ANZ Investments') is the issuer and manager of the ANZ Investment Funds. Important information is available under terms and conditions. Download the guide and product disclosure statement.