Requesting access to the money in your term deposit before it reaches maturity will compromise your interest earnings. On the other hand, a term deposit involves locking a sum away until it earns a predetermined amount of interest (reaches maturity).
Savings accounts also allow you to deposit and withdraw money as you please (although the rate of interest you earn might decrease if you don’t maintain a certain minimum balance). In contrast, a term deposit will have a fixed interest rate, which means you can calculate with certainty what your return on investment will be. However, they do have some important differences.Ī personal or business savings account typically has a variable interest rate, which means that the rate at which your savings accumulate interest will fluctuate with the market.
Savings accounts and term deposits are similar in that you earn interest on the amount deposited.
Calculators and tools Calculators and tools.
