The interest rate is fixed for the duration of the term, and you can choose to receive the interest payments monthly, quarterly, or annually. In return, the financial institution pays you a fixed interest rate on your deposit, which is usually higher than the interest rates offered on savings accounts. In this section of the blog, we will introduce term deposits and discuss their features, benefits, and drawbacks.Ī term deposit is a type of investment where you deposit a sum of money with a financial institution for a fixed term, typically ranging from 1 month to 5 years.
They are a popular investment option among conservative investors who prefer a low-risk investment strategy.
Term deposits are an excellent way to earn a guaranteed return on your money while keeping it safe and secure.
