Term deposits are popular for use by investors who prefer receiving a set return, instead of worrying about the possible daily fluctuations of the interest rates on offer for at-call accounts. If you need to withdraw your funds before the end of the set term, you may receive an interest rate penalty. Term deposits are commonly referred to as a TD but can also be known as a certificate of deposit or CD, a time deposit or “bonds”.įixed terms can typically range from one month to five years – but some can be up to ten years – and the money can usually only be withdrawn at the end of the term. A term deposit is an investment of cash placed with a financial institution for a fixed period of time, known as the term, with a fixed interest rate for your return at the end of the term.
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