managed funds) that seem similar to what a term deposit offers, but these are much higher risk, ASIC warns. There may also be legitimate investment products (e.g. The Australian Securities and Investments Commission (ASIC) warns that there are cases where scammers advertise fake investments as being ‘like a term deposit’ with ‘guaranteed high returns’. You should also make sure that the product you’re investing in is in fact a term deposit.
If you are investing a large amount, consider discussing your options with a financial advisor first. If you have more than $250,000 to invest, you could spread your savings across multiple term deposit providers covered by the scheme to ensure you are protected. That means no matter what happens to a bank, each customer with a term deposit will be protected up to $250,000. Money saved in a term deposit with an authorised deposit-taking institution (ADI) is guaranteed by the Australian Government’s Financial Claim Scheme, up to a value of $250,000 per person per bank.
