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Term deposits vs investment funds

Thinking about investing in an ANZ Term Deposit or Investment Fund? While both are valid investment options, they’re designed with 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.

Term deposits vs 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 timedisclaimer. 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

If you’re 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. 

Find out more about the ANZ Term Deposit.

Find out more about the ANZ Investment Funds.

Free, personalised financial advice

If you need help choosing the right investment option for you, or putting together a plan to achieve your financial goals, talk to one of our financial advisers. They can provide free advice tailored to your individual situation.

 

Find out more

   

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 Institution (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 is the issuer and manager of the ANZ Investment Funds. Important information is available under terms & conditions. Download the guide and product disclosure statement.

Once your withdrawal request is received, it will usually take up to five business days for your withdrawal to be processed and paid to your bank account. A minimum withdrawal amount of $500 per lump sum withdrawal or $100 per fund for regular withdrawals apply.

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