Whats the point in fixed term accounts?

[Boyd]

Previously I assumed these would be better rates due to locking in your cash for 1+ years. However, Rabo have a 90 day notice deposit account paying 1.45% AER, which is higher than most of the 1 or 2 year fixed term accounts.

Whats the point in term accounts any more then? Or am I completely missing something?

 

[Lightning]

Simply put, term deposit accounts offer a fixed rate of return.

The Rabo rate probably will decline as it is higher than the market.

One could easily end up with a higher return via one of the better paying term deposit than the Rabo notice account.

 

[Boyd]

Ah of course, fixed interest rate, as well as fixed term. Duh